Snacks pave the way for significant tax increases for Covid-19 payments

Rishi Sunak paved the way for a significant tax increase in the spring. This week’s spending review warns that it will include forecasts that reveal the “magnitude of the economic shock” caused by the Covid-19 crisis.

Foreseeing Britain’s financial straits, the Prime Minister told the BBC’s Andrew Marr: “It’s a very difficult situation. The economy is experiencing a lot of stress,” he added, “it’s going to be more stressful.”

Snack said the spending review will focus on helping the country overcome the crisis, but a dark new forecast from the budget oversight agency, the Budget Responsibility Department, is a new debate about who will pay the bill. Will cause.

Next year, after the pandemic has eased, the Prime Minister will consider how tax systems, such as pension tax deductions and capital gains tax systems, will work in an attempt to restore “sustainable finances.”

“By spring, we have positive news about both mass testing and vaccines, and we hope we can start looking forward to it,” he told The Sunday Times.

Boris Johnson has denied a return to “austerity” —Snack announces a public sector wage freeze this week, which is one of the hallmarks of the fiscal contraction after the 2008 financial crisis. ..

However, it is expected that tax increases, not spending cuts, will be a burden for fiscal consolidation. So far, the prime minister is claiming higher spending in several areas.

Wednesday’s spending review includes a £ 16.5bn boost for spending commitment and defense to the “Green Industrial Revolution” and an additional £ 3bn for the NHS to deal with fallout from the pandemic. Will be.

“I want to take my credit card away,” said Snack, who mentioned Johnson. This week’s statement is likely to be a turning point as the Prime Minister is preparing to recover some of the billions of pounds he spent on Covid-19. crisis.

There are several statement moves to curb borrowing, including a public sector wage freeze (excluding NHS workers) and a reduction in overseas aid budgets that are expected to save £ 4 billion annually.

Borrowing reached £ 22.3bn in October, public sector debt is now over £ 2 trillion, and the political and economic conditions recognized by Treasury insiders are “big” on taxation ahead of the spring budget. Must be a decision.

Even before former Pandemic Prime Ministers George Osborne and Sajid Javid considered a pension tax deduction system, it primarily benefited the wealthy and cost about £ 40 billion annually on abandoned income tax revenues. Will be charged.

The 2019 Conservative Election Manifest has promised to remove “arbitrary tax incentives for the wealthiest people in society.” We also promised not to raise income tax, value added tax and national insurance tax rates. Johnson says he wants to keep it, but limits the room for Snack’s operations.

Asked by Sky News Sophie Ridge about the manifesto’s so-called “tax triple rock,” the prime minister left the possibility of failing to keep his promise. “I will not comment on future financial events,” he said. ..

Snacks pave the way for significant tax increases for Covid-19 payments

Source link Snacks pave the way for significant tax increases for Covid-19 payments

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