Britain’s ability to attract successful companies and talented people has rarely been as important to its future prosperity as it is right now. As Brexit trade arrangements remain uncertain and global economic growth seems to be weakening, the country’s preparedness for what lies ahead is crucial if it is to flourish.

There is a widespread perception that Britain, unlike countries such as France or Sweden, is a low-tax nation, with a small state and a preference for keeping the tax burden as low as possible to boost growth and attract investment.

In reality, the tax burden is at a 30-year high as a share of GDP. So, with that in mind, how much tax do Britons really pay? Where is it all coming from? And how does it compare internationally?

Tax burden

There is little evidence to support the idea the UK is a low-tax economy.

Taxes amounted to one-third of GDP last year, according to the Organisation for Economic Co-operation and Development (OECD).

That is the highest level since 1988 and above average for the past 50 years.