Tax Freedom Day is a measure of when Britons stop paying tax, and start putting their earnings into their own pocket. In 2025, the Adam Smith Institute has estimated that every penny the average person earned for working up to and including June 11th went to the taxman – from June 12th they are finally earning for themselves.
British taxpayers have worked for a gruelling 162 days for the taxpayer this year, the latest since current records began. That’s 6 days later than last year, and 21 days later than before the pandemic. In 2009, Tax Freedom Day fell on May 18th – almost a whole month earlier.
But, things are only getting worse. New research by The Adam Smith Institute shows that the UK is on track to have the latest Tax Freedom Day. Based on current Government taxation and spending plans and OBR projections, the ASI predicts that by 2028 Tax Freedom Day will fall on 24th June. By as soon as 2030, Tax Freedom Day could fall over half way through the year – July 2nd. This would mean that taxation would exceed 50% of Net National Income.
While government spending was higher at its peak in WW2 and in WW1, this was heavily debt financed. In-year taxation, as a share of national income, has never reached such heights – even through war time, the economic crises of the 1970s and reforms of the 1980s. Nonetheless, government spending remains incredibly high. Cost of Government Day, which factors in borrowing as well as taxes, is July 22nd —the latest since the pandemic.
What’s more, the UK’s growing tax burden is increasingly carried by the rich. In the tax year 2024/5, the top 1% paid 28.2% of the total UK tax liabilities with the top 5% and top 10% paying 48.8% and 60.2% respectively. With their share of liabilities steadily increasing over the last 25 years, many wealthy taxpayers are leaving the UK altogether. The Adam Smith Institute predicts that the UK is on course to lose the greatest proportion of millionaires in the world within this parliament, raising questions about the viability of our current tax regime.
Britain’s tax burden has been moving in the wrong direction for years. With the tax burden set to reach its highest level in history, The Adam Smith Institute is calling on politicians seeking election to be honest with the public about the size and nature of the tax burden on British taxpayers.
Andrew Griffith MP, Shadow Secretary of State for Business and Trade, said:
“Britain is now spending 163 days a year slaving away for this high spending socialist government – far too long. It’s no wonder a generation of top talent are fleeing.
Tax ‘Freedom Day’ comes later every year because for too long politicians have not been honest about living within our means. We need to cut spending to give Britain room to grow.”
Saqib Bhatti MP, Shadow Minister for Culture, Media & Sport, said:
“I am a Conservative because I believe that people know how to spend their money better than the Government.
“Keeping taxes down helps drive economic growth, supports dynamic businesses and raises living standards for all.
“On Tax Freedom Day, I am calling on the Government to lower taxes to incentivise investment and turn our economy around. Give people their freedom.”
John O’Connell, Chief Executive of the TaxPayers Alliance, said:
“It’s staggering that hard-working Brits have to slog through nearly half the year before they’re earning for themselves, not the taxman.
Tax Freedom Day keeps drifting later, a damning sign of out-of-control public spending.
Ministers can’t keep burying their heads in the sand. It’s time for serious reform to slash waste and deliver better value for taxpayers.”
James Lawson, Chairman of the Adam Smith Institute, said:
“Britons are now working nearly half the year just to pay taxes — and the burden is only getting heavier. A tax system that consumes 162 days of our working year is simply not sustainable. It stifles our economic growth, productivity and our long-term prosperity. What’s even more alarming is that, unless we reverse course, the UK is on track to hit the latest Tax Freedom Day in its history by 2028, with taxes swallowing more than half of national income by 2030. This would take us beyond anything seen even during the World Wars or the economic crises of the 1970s, raising profound questions about the nature of our economic model.
Politicians from all parties must ask themselves whether they want a country where work is penalised, innovation suppresses, and families see more of their income swallowed by the state each year. If we are serious about turning around our stagnant economy, we must start by cutting taxes.”
