'It's going to be tough': Warning of tax rises for everyone in desperate bid to pay back £50billion into public purse
1 November 2022, 00:28 | Updated: 1 November 2022, 00:43
People across the country are facing rising taxes for years to come as the Prime Minister and Chancellor look to address an estimated £50billion black hole in the public purse.
It has been reported that Rishi Sunak and Jeremy Hunt are looking to plug the gap through a combination of 50% tax rises and 50% spending cuts - indicating that £25billion of tax rises could be on the cards.
According to the Daily Telegraph, they have agreed to freeze the thresholds where people start to pay different rates of income tax and national insurance for years ahead.
The paper quoted a source from the Treasury which said ‘it’s going to be tough’.
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They added: “The truth is that everybody will need to contribute more in tax if we are to maintain public services.
“After borrowing hundreds of billions of pounds through Covid-19 and implementing massive energy bills support, we won’t be able to fill the fiscal black hole through spending cuts alone.”
Government insiders believe that billions are needed to fund the NHS and clear backlogs of waiting lists from when everything was put on hold over the pandemic.
It was already expected that tax thresholds would be frozen until 2026 but the new plan will see this extended for two years, possibly longer.
These changes are likely going to be announced in the Autumn budget which will be revealed on November 17.
