Brits paying more taxes than Germans

TAXPAYERS in Britain are now handing over a larger slice of their income than their German counterparts. Since Labour gained power more in 1997, the share of national wealth snatched by Chancellor Gordon Brown has increased from 35.2% in 1997 to 37.7% last year.

Over the same period, the proportion of Germany's gross domestic product taken in taxes has fallen from 37% to 36.1%, according to statistics unearthed by the independent House of Commons Library. Other EU nations, including France, Italy and Holland also left their citizens with more of their money.

The Conservatives seized on the figures to condemn Brown's economic strategy ahead of the Pre-Budget Report.

Ministers have frequently sought to deflect criticism by comparing Britain to more heavily taxed European countries, mainly Germany. But Brown has imposed higher taxes on pensions, increased National Insurance and raised extra billions of pounds from duties on road fuels, tobacco and alchohol.

Tory shadow Chancellor Michael Howard said: 'This is damning evidence that Labour are undermining Britain's competitiveness, and making Britain a worse place to do business.'

According to the Commons Library, the tax burden in France - while higher than in Britain - has fallen from 45.2% of GDP in 1997 to 44.7% last year. In Italy the comparative figures are 44.2% to 41.1% and in Holland 41.9% to 37.7%.