South East pays half of UK's £173bn tax HMRC data shows that households in London and the South East account for almost half of the UK’s £173bn tax take, paying a combined £87bn bill. Analysis by the Liberal Democrats shows that nearly a million more taxpayers in these regions are set to be forced into higher rates by 2027/28, with this due to Chancellor Jeremy Hunt’s decision to freeze tax thresholds in the Budget – a move that is expected to net the Government an extra £120bn over the next five years. Office for Budget Responsibility analysis shows the freezes will add £12bn to the tax take over the 2023/24 financial year, rising to £29.3bn by 2027/28. In five years, 3.2m people previously not liable for income tax will have to pay it, and nearly 2.5m will move into higher brackets. The Lib Dem report shows that freezing the tax bands will lead to an increase of more than £4.4bn being paid by London and the South East over the next year alone. Liberal Democrat leader Ed Davey described this as “a hammer blow for Middle England,” adding: “Hard-working families are already struggling with rising food and energy bills. More tax hikes are the last thing they need. When will the pain end?” Warning that families are “feeling short-changed, with yet more of their wages eaten up by endless tax hikes,” he pointed to a “toxic cocktail of taxes, mortgages and food bills.” The Mail on Sunday