FAMILIES in the North-East receive more in benefits than they pay in taxes than anywhere else in the country, according to new figures.

Research carried out by the TaxPayers’ Alliance found that during 2012 to 2013, the region’s households received an average of £3,175 more in benefits and benefits in kind through services like the NHS and education, than they paid in taxes.

In London, households paid £4,119 more in taxes than they received in benefits, with the average household paying £274 more in taxes than they received in benefits.

It also found that the poorest households paid an average of 47 per cent of their income in taxes – the highest percentage of any income group.

Darlington MP Jenny Chapman said the figures came as no surprise to her.

“We know that there are high levels of unemployment and dependency on benefits in the North-East and wages are largely lower so working benefits are paid to more people,” she said.

“It is reassuring to see that an organisation like the TaxPayers’ Alliance pays attention to these kind of regional inequalities.

“We are absolutely not getting a fair deal. Just this week we see the funding allocated to local councils and there was stark disparity.

“We see the North-East losing out and then places like Bedfordshire seeing a £4m increase in their allocation.

“We are going to see in towns like Darlington getting a reduction while other parts of the country get more money.”

Her thoughts were echoed by Darlington Borough Council leader, Bill Dixon, who added that the Tees Valley generates high levels of corporation tax through its industries.

The research found that VAT is the most burdensome tax for households in the lower half of the income scale, while income tax is the most onerous for the upper half.

Before taxes and benefits, the most well-off families had an average income that was 27 times higher than the households on the lowest incomes, but after tax this falls to 5.8 times higher.

Jonathan Isaby, chief executive of the TaxPayers' Alliance, said: "This analysis shows how pernicious our tax burden has become.

“Not only does the tax system hit the poorest hardest, but those at the top are already contributing far more than anybody could reasonably describe as their fair share.

“Our tax system is neither progressive nor fair, and we need radical reform as well as necessary savings if the way we tax and spend is to become fit for purpose."