UK plans to increase taxes to overcome a billion pounds deficit

By Al Mayadeen English
Source: Agencies
1 Nov 2022 15:11

UK Prime Minister Rishi Sunak plans to increase taxes to cover £50 billion pounds ($57.5 billion) in public finances deficit.

UK Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt (AP)

UK Treasury officials, as cited by The Financial Times, stated that incoming UK Prime Minister Rishi Sunak plans to hike taxes to overcome a 50 billion pound ($57.5 billion) deficit in public finances.

The government's medium-term financial strategy "to put public expenditure on a sustainable foundation, get debt reducing, and restore stability" is anticipated to be unveiled by Chancellor of the Exchequer Jeremy Hunt on November 17.

Officials from the Treasury claim that Sunak and Hunt reached a tax hike agreement on Monday.

The FT cited officials saying that "it is going to be rough." The officials explained, "The truth is that everybody will need to contribute more in tax if we are to maintain public services."

UK inflation returns above 10 percent

Official figures indicated Wednesday that British inflation rose back beyond 10% in September, owing to increasing food costs in a country plagued by a cost-of-living crisis.

The Consumer Prices Index increased to 10.1% on an annual basis, up from 9.9% in August, according to the Office for National Statistics.

The September rate matched the July level and is the highest in 40 years, owing to sky-high energy bills. "I understand that families across the country are struggling with rising prices and higher energy bills," Britain's new Finance Minister Jeremy Hunt said in a separate statement.

"This government will prioritize help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone."