Instead, Downing Street is currently focusing on potential “non-fiscal” measures that could reduce the cost of living, such as cutting red tape, which increases the cost of childcare.
According to a study by the Commons Library commissioned by the Liberal Democrats, a middle-income household will have a combined initial income of £ 717,640 over the next decade, on which it will pay around £ 5,550 in tax directly from policies introduced in 2021 – namely increase of the National Insurance and freezing of the personal allowances for income tax.
Estimates suggest that Mr Sunak will reduce the basic income tax rate from 20 pence to 19 pence in 2024, as he promised to do during the March budget.
“No light at the end of the tunnel”
Ed Davy, the leader of the Liberal Democrats, said the figures showed that “there is no light at the end of the tunnel under this conservative government, only years of painful tax increases”.
Mr Davey added: “Now is not the time to raise people’s taxes, just when energy bills and inflation are going through the roof. “People are facing an emergency with the cost of living and need urgent tax cuts now.”
Add Comment