Expect a big tax increase in the UK

According to the Sky News series, which quoted sources from the Treasury Department, the increase will be “difficult”, and everyone will have to contribute more in order to maintain public services.

The official, whose name was not revealed by the TV station, said that after borrowing hundreds of billions of pounds to tackle the Covid-19 epidemic, and providing energy aid packages, we will not be able to plug the financial black hole by spending cuts alone. .

Last week, as he took over the leadership of the Conservative Party and government from resigning Liz Truss, Sunak promised to correct the financial mess caused by his predecessor’s controversial tax cut, but warned he would have to do so. Make tough decisions.

British research firm Resolution also warned on Tuesday that despite reversing most of the tax cuts that Truss has tried to implement, the new CEO will have to adopt some “extremely unpleasant” measures to cover a €40 billion fiscal shortfall. about $46 billion).

Private Entity Director of Investigation James predicted that the government would not be able to reduce loans by more than 20 billion pounds ($23 billion) while cutting public spending, so it would have to do something with taxes as well. Smith.

According to the expert, Sunak, who served as finance minister for most of Boris Johnson’s term (2019-2022), will have to cut investments, reintroduce some austerity measures in government agencies, increase taxes paid to the state, and reduce social benefits.

He said the autumn budget was due to be presented the day before, but after taking office last week, the new prime minister postponed the date to November 17, to have time to review the data.

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