It is well known that the UK’s growth and productivity are waining, as the number of economically inactive citizens has increased.
This is a problem across the country, but data suggests that this stagnation is more pronounced in some places in particular.
HMRC data reveals the UK districts that pay the lowest amount of the country’s total tax income.
The figures from 2020/21 – which are the latest available – also list the estimated total income tax contributions paid by residents in each local authority district.
A few places in Scotland rank at the bottom of the table – the Orkney Islands, Na h-Eileanan Siar and the Shetland Islands.
Next is the Welsh town of Merthyr Tydfil, where the number of individuals paying tax totalled £25,000.
The borough of Blaenau Gwent, also in Wales, comes next. Here there were 31,000 tax payers, who paid £85,000,000.
The first English area on the list came next.
Full list of parts of the UK that paid least tax
| District | Total tax: Number of individuals n | Total tax: Amount (£ millions) | Proportion % tax paid- of UK total |
| North Warwickshire | 32,000 | £153,000,000 | 0.10% |
| Tamworth | 39,000 | £150,000,000 | 0.10% |
| Oadby and Wigston | 27,000 | £146,000,000 | 0.10% |
| Hastings | 39,000 | £140,000,000 | 0.10% |
| Torfaen | 43,000 | £139,000,000 | 0.10% |
| Bolsover | 38,000 | £132,000,000 | 0.10% |
| West Devon | 27,000 | £132,000,000 | 0.10% |
| Pendle | 40,000 | £128,000,000 | 0.10% |
| Torridge | 33,000 | £123,000,000 | 0.10% |
| Burnley | 39,000 | £122,000,000 | 0.10% |
| Isle of Anglesey | 35,000 | £121,000,000 | 0.10% |
| Clackmannanshire | 25,000 | £120,000,000 | 0.10% |
| Boston | 35,000 | £110,000,000 | 0.00% |
| Ceredigion | 33,000 | £110,000,000 | 0.00% |
| Hyndburn | 33,000 | £104,000,000 | 0.00% |
| Blaenau Gwent | 31,000 | £85,000,000 | 0.00% |
| Merthyr Tydfil | 25,000 | £80,000,000 | 0.00% |
| Shetland Islands | 11,000 | £64,000,000 | 0.00% |
| Na h-Eileanan Siar | 13,000 | £50,000,000 | 0.00% |
| Orkney Islands | 11,000 | £50,000,000 | 0.00% |
A Parliamentary report stated in January the UK has “significant shortfalls in productivity levels between regions and nations”.
In London, for example, output per hour worked is 26% above the national average. In Wales, meanwhile, it is 17% below.
Experts added: “The sustained slowdown in productivity growth has become known as the ‘productivity puzzle’ and defies easy explanation.
“The UK has a long-standing gap in labour productivity compared with some other major advanced economies, including the US, Germany and France.
“These economies have also experienced productivity slowdowns since the financial crisis, but the UK has seen a slightly greater slowdown and lost further ground, particularly against the US.”
