Andy Burnham 'tax rises': London's income tax bill hits record £80bn as PM doesn't rule out more levies

London’s income tax bill has jumped to a record of nearly £80 billion a year, official figures reveal.They show that Londoners paid the Treasury £79.2 billion in income tax in 2024/25, a startling £6.9 billion more than in the previous year.The 20% basic rate of income tax is paid on income from £12,571 to £50,270, and the 40% higher rate on income from £50,271 to £125,140. He has signalled that he may increase levies on the better off to fund measures to ease the cost of living for millions of households struggling to make ends meet.But the PM has made clear that he has no plans to imminently introduce such a major homes tax shake-up.Property prices are falling in Inner LondonGettyThe official figures also show the capital’s annual "bail-out" of the rest of the country has ballooned to a record £49 billion.The Office for National Statistics data details how the capital contributed almost £240 billion in taxes to the Treasury in 2024/25, but benefited from only £165.5 billion in public spending.Read MoreAfter items such as capital expenditure and depreciation are taken into account, London's "fiscal surplus" for the Government totalled an all-time high of £48.8 billion, up from £45.3 billion the previous year.The figure has more than doubled in less than a decade as successive Chancellors have loaded taxes on the capital as they have struggled with the public finances.Rachel Reeves brought in the ‘mansion tax’ as ChancellorGettyOnly one other region, the South East, also makes a net contribution to the Exchequer. All other English regions, as well as Scotland, Wales and Northern Ireland, receive more in public spending than they contribute in tax.The biggest net recipient is the North West, the region that includes Mr Burnham's Manchester heartland and Makerfield constituency, which had a fiscal deficit of £39.5 billion in 2024/25.By contrast Mr Burnham's North West received a net subsidy equivalent to £5,162 per head.