Rishi Sunak is drawing up plans for years of tax rises for everyone in the country, as a Treasury source warned: “It’s going to be rough.”
On Monday, the Prime Minister and the Chancellor decided to bring in “stealth” increases in income tax and National Insurance over the coming years by freezing the thresholds at which people start to pay different rates.
They agreed that “tough decisions” would be needed on tax rises, given the “eye-watering size” of the £50 billion fiscal black hole left by Liz Truss’s disastrous mini-Budget.
It is believed Jeremy Hunt is looking at saving money in a ratio of 50 per cent tax rises and 50 per cent spending cuts – indicating that £25 billion of tax rises could be on the cards.
Cut spending more that is.
Tax as a percentage of GDP is already higher than it has been since the 1950s. So, stop doing things. Like HS2, for a start…..