david cameron's claim to be a 'tax cutting politician' was under fire last night – as a study found the coalition has raised taxes by more than £16billion a year the independent institute for fiscal studies said the net effect of changes by the coalition had raised taxes by an average £255 for every person in the uk the respected think tank found the tax rises totalled £643billion – including a £14billion hike in vat and a £52billion increase in national insurance contributions millions of people have been dragged into paying the 40p tax rate for the first time – and inheritance tax has increased as thresholds have been frozen for years humiliating: revelation that the coalition has raised taxes is embarrassing for prime minister david cameron (pictured), who has spoken repeatedly of his desire to be seen as a 'tax cutter' the tax hikes have been only partially offset by reductions totalling £48billion – including £8billion from raising the personal income tax threshold, £59billion in lowering corporation tax and £39billion from real terms cuts in fuel duties ministers insist the tax rises were needed to help plug the budget deficit left by labour sources say they had no choice but to take 'difficult decisions' to save britain from bankruptcy but the findings remain embarrassing for mr cameron, who has spoken repeatedly of his desire to be seen as a 'tax cutter' they show the value of the rise in personal income tax allowance has been wiped out by rises in other levies in next week's budget, chancellor george osborne, is expected to announce a further increase in the personal allowance, along with modest cuts in alcohol duties but treasury sources admit they have little money to play with the ifs said the coalition's changes represented a 'missed opportunity to improve the tax system', with little attempt to address 'fundamental structural deficiencies' several of the changes have increased 'unwelcome distortions' in the system, the think tank added it said it was difficult to find a 'good economic reason' for lifting lower paid workers out of income tax while leaving national insurance thresholds largely untouched – warning it was an 'absurdity' that the two taxes were not integrated warned: the uk statistics authority has 'ticked off' shadow chancellor ed balls for claiming the number of workers on zero hours contracts had increased by 400,000 in recent months  ed balls has been ticked off by the statistics watchdog for claiming the number of workers on zero hours contracts had increased by 400,000 in recent months sir andrew dilnot, of the uk statistics authority, said mr balls's statement was incorrect, as it relied on comparing totals at two different times of year and ignored the possibility that some people could hold multiple contracts for different jobs the study praised last year's stamp duty reforms but it warned that council tax had been allowed to get 'ever more out of date', with bands in england and scotland based on 1991 property prices it added that areas such as fuel duties and business rates had seen 'ad hoc, often temporary, announcements overtaking each other' authors stuart adam and barra roantree said there was a 'better way to make tax policy' labour seized on the report as evidence that the government had failed to deliver better living standards george osborne will pledge to tackle the scandal of ordinary workers being dragged into the 40p tax rate next week in his last budget before the election the chancellor is expected to fast track plans to raise the starting threshold for paying the higher rate tax to £50,000, if the tories win the election the conservatives promised the move last year, but did not set out a detailed timetable at the time, mr osborne said only that the threshold – currently £41,865 – would rise to £50,000 by 2020 lib dem opposition means no action can be taken in the finance bill which will be pushed through before parliament breaks up at the end of the month 'tax cutting': chancellor george osborne is expected to fast track plans to raise the starting threshold for paying the higher rate tax to £50,000 if the tories win the election  but prime minister david cameron is understood to be pushing for a commitment to begin raising the threshold next year a tory source said: 'there is a recognition that we need to get on with this to show that we mean business' the number of people paying 40p tax has risen by about two million, to five million, since 2010, as the coalition cut the threshold, and then raised it more slowly than inflation, to help pay off the budget deficit left by labour the threshold is also the starting point at which families with a relatively high earner start to lose their child benefit payments the prime minister said this week that too many people were now paying a tax that was 'only ever meant for the better off'
first 643billion david cameron labour the institute for fiscal studies
prime minister david cameron has claimed to be a 'tax cutting' politician  reputation under fire after the revelation by the institute for fiscal studies  it discovered tax rises totalled £643billion   including £14billion vat hike  millions are paying 40p tax for first time and inheritance tax increased too  ministers say tax rises necessary to help plug budget deficit left by labour 