Politics

Warning as Hunt set for £30bn of tax rises and ‘painful’ spending cuts

Jeremy Hunt announces changes to measures from mini-budget

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

The UK has been issued a stark warning over Jeremy Hunt’s Halloween budget, with a former Treasury minister saying that the new Chancellor will be forced to introduce £30 billion worth of tax rises and “painful” spending cuts. This comes as the Government rows back on the plans made in its September mini-budget. Yesterday, Mr Hunt announced that almost all of the measures announced in Ms Truss’ mini budget will be reversed.

But former secretary to the Treasury David Gauke warned that matters could get even worse at the October 31 budget.

Speaking to Sky News, he said: “The public finances are in a pretty difficult state and he is going to have to find more money from somewhere – possibly in the region of £30 billion or so.

“And that is a lot of money to find.

“It’s going to have to be a combination of tax increases and spending cuts.

“And spending cuts will be very painful in these circumstances, so taxes I suspect will have to do quite a lot of the heavy lifting.

He added: “To raise the sort of sums we’re talking about, he’s probably going to have to look at some of those main taxes and those big revenue raisers – income tax, national insurance contributions or VAT.

“I’m not sure that’s yet been taken on board by Conservative MPs and the public.

“I think that may come as a bit of a surprise for people on the 31st of October.”

Mr Hunt’s statement yesterday revealed that the basic rate of income tax will remain at 20p indefinitely – instead of being reduced to 19p.

Meanwhile, the cap on energy bills is guaranteed until April next year, but will then be reviewed.

Source: Read Full Article