Residents hit by rise in tax bills

Residents of most towns and cities have seen their tax bills increase since the start of the financial crisis, paying up to 31% more, according to a new study.

Research by accounting group UHY Hacker Young among residents of 50 towns and cities showed that 42 saw average bills rise.

Taxpayers in York saw the biggest increase, paying 31% more tax in 2009/10 than in 2006/7, with Winchester and Aberdeen just behind, said the report.

In contrast, people in St Albans, Salisbury, Durham, Londonderry, Lisburn, Stoke-on-Trent and Peterborough saw their incomes rise while taxes fell, it was found.

Rob Durrant-Walker, of UHY Hacker Young, said: "For the vast majority of taxpayers the effective tax rate fell during the financial crisis. The tax bill for someone on a static income of £20,000 will have decreased by about 11% over the last three years.

"Of course, that doesn't reflect the increase in VAT and other indirect taxes.

"These statistics also show survivor bias of the recession, showing those still working, or self employed or pensioners who are earning enough to pay tax."