Budget 2012: The statement which shows where your tax money goes

Tax: Where does it all go?
Tax: Where does it all go?

By politics.co.uk staff

Taxpayers will receive a statement showing how much of their income is paid to the state and what it is spent on, according to new plans.

The proposal, which is likely to feature in tomorrow's Budget, is being taken as part of the government's commitment to making the tax system more transparent. More cynical commentators suggest it is also designed to keep up the pressure on Labour over public spending.

A specimen statement released by the Treasury showed that someone earning £25,200 would see £5,702.12 go to the exchequer in direct taxation.

Of that, the biggest slice is spent on welfare and pensions, which receives £1,900.71. Health receives £992.91 and education £743.26.

Interest on the national debt comes in at £363.12, just ahead of £329.08 for defence. The police cost £153.19.

Overseas aid receives £56.74. The cost of running the EU accounts for £28.37.

The first statements are expected a year before the next general election.
 

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