Britons brace for higher ‘virus’ taxes | Daily News


 

Britons brace for higher ‘virus’ taxes

Britain’s Chancellor of the Exchequer Rishi Sunak (L) and Britain’s Prime Minister Boris Johnson.
Britain’s Chancellor of the Exchequer Rishi Sunak (L) and Britain’s Prime Minister Boris Johnson.

UK: Britons face the prospect of higher taxes as the government looks to claw back vast sums spent during the pandemic -- but the move risks harming economic recovery according to experts.

While Finance Minister Rishi Sunak on Wednesday vowed that there would not be “a horror show of tax rises with no end in sight”, he stressed that the government “will need to do some difficult things”.

Analysts said this was a clear signal that tax rises were on the way. Reports suggest that Sunak is mulling hikes to raise between £20 billion and £30 billion ($26-$39 billion, 22-33 billion euros).

This could be in the form of increasing income and corporation taxes, analysts said.

Helen Miller, deputy director at the Institute of Fiscal Studies, warned against acting too soon.

“Now is not the time to raise taxes,” she said in response to Sunak’s tax-raising signals.

Sunak, whose official title is Chancellor of the Exchequer, warned however that the state cannot “simply borrow” its way out of the current financial hole.

British government debt has exceeded £2 trillion for the first time following massive state borrowing as the coronavirus pandemic pushed the UK economy into a record recession.

That is equivalent to more than 100 percent of the country’s annual gross domestic product, or total economic output, for the first time since 1961. - AFP


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