New official figures have revealed a significant £41.8 billion increase in tax revenues collected by HM Revenue and Customs (HMRC) in the current financial year, following Chancellor Rachel Reeves's autumn Budget.
Key Drivers Behind the Fiscal Surge
Data covering the eight months from April to November 2025 shows that gross tax and National Insurance contributions reached a total of £579 billion. This marks a substantial jump compared to the same period last year.
The growth was powered by strong year-on-year performances in several core areas. Income Tax, Capital Gains Tax, and National Insurance together brought in £329.5 billion, representing an 11% increase—or £34 billion—over the previous year.
Breaking this down further, receipts from PAYE Income Tax and National Insurance alone rose by £32 billion to £309.6 billion. Meanwhile, revenue from self-assessment, Capital Gains, and other NI contributions reached £19.6 billion.
The Impact of Extended Threshold Freezes
A central factor behind these rising figures is the government's decision to extend the freeze on Income Tax and National Insurance thresholds for an additional three years. In England, Wales, and Northern Ireland, these thresholds are now locked until April 2031.
This policy, often described as a 'stealth tax', effectively increases the tax burden on individuals as their wages rise with inflation, pulling more people into higher tax brackets.
Political Reaction and Chancellor's Defence
The figures have ignited fierce political debate. Conservative Party leader Kemi Badenoch accused the Chancellor of breaking past promises, labelling last year's measures "the biggest tax raid in British history" and criticising the return for more revenue.
Nigel Farage, leader of Reform UK, characterised the Budget as "an assault on aspiration and an assault on saving".
Chancellor Rachel Reeves acknowledged the difficult choice in her Budget statement, stating she recognised she was "asking ordinary people to pay a little bit more." She defended the approach by emphasising efforts to minimise the impact by "closing loopholes and asking those with the broadest shoulders to pay more."
The latest HMRC statistics provide the first comprehensive snapshot of the fiscal impact of the government's tax policy, setting the stage for continued debate over the UK's economic direction.
