Is the UK Overtaxed, Over-borrowed, and Running Out of Road? | IEA Interview

In this Institute of Economic Affairs podcast, Callum Price speaks with Max Marlow, Director of Public Affairs at the Adam Smith Institute, about Tax Freedom Day 2025, which fell on Saturday 6th June, the latest date ever recorded. They discuss what the figure actually measures, how the tax take now stands at 36.1% of GDP, and why the complexity of the UK tax system is compounding the burden on households and businesses.Max explains the international comparisons, contrasting the UK’s position with lower-tax economies such as Singapore (15th March), Switzerland (21st April) and the United States (16th April), and argues that competition between states and cantons restrains tax growth in ways that centralised systems cannot. The conversation also covers the Cost of Government Day, which falls on 13th July when borrowing is included, the demographic pressures driving welfare and pension spending, and the finding that over 52% of the British population are in some way dependent on the state for income.The discussion closes with Max’s priorities for reform: rationalising the tax code, cutting red tape, pushing ahead with planning reform, and abolishing stamp duty to unlock the property market. He offers cautious optimism that some political figures are beginning to take the scale of the problem seriously, though he warns the trajectory points towards Tax Freedom Day reaching 13th June by 2030 without significant policy change.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit economicaffairs.co.uk/subscribe