Rishi Sunak is considering cutting income tax from 20p to 19p amid growing pressure from MPs and campaigners to intervene. He is also weighing up whether to impose a windfall tax on oil and gas companies.
Chancellor Rishi Sunak has reportedly told MPs reducing taxes is his “absolute priority”, according to the i.
Proposals to slash income tax in spring could be brought forward to the autumn, a decision which would affect millions struggling due to the soaring cost of living.
Treasury insiders have reportedly confirmed the Chancellor is considering whether to bring his income tax cut forward by announcing it in his Autumn Budget instead of waiting until spring.
The cut in the basic rate of income tax from 20p to 19p is currently scheduled to take effect in April 2024, but the Chancellor could bow to pressure to step in and help Britons who are struggling.
While some MPs want tax cuts, others are calling for a boost to Universal Credit to help the poorest in society.
The £20 a week uplift in Universal Credit brought in at the beginning of the pandemic in March 2020 ended in October 2021, just as energy bills and food prices skyrocketed.
Today, inflation hit nine percent – as prices rose at their fastest rate in 40 years.
Inflation hurts those on the lowest incomes the most as they have less wriggle room for cutting back on spending.
Rishi Sunak is also said to be planning an increase to the Warm Home Discount to help Britons survive the cost of living crisis.
Rishi Sunak is considering increasing the Warm Home Discount from £150 to up to £600 which would benefit families on a low income and pensioners.
The Warm Home Discount previously stood at £140, but Mr Sunak confirmed plans to increase it to £150 in February this year.
It means help could be on its way to some of the poorest households in Britain who are struggling to make ends meet during the cost of living crisis.
Rishi Sunak is considering increasing the warm home discount from £150 to up to £600 which would benefit families on a low income and pensioners.
The news comes amid research which shows more than three quarters (76 percent) of people feel anxious about their financial situation, due to the cost of living crisis.
Four out of ten workers are also living from month to month, according to a new report by financial wellbeing nudge Global which polled over 1,000 full-time employees in the UK.
When looking at the state of the country as a whole, over four-fifths (81 percent) of workers feel pessimistic about the UK’s financial future.
Published at Wed, 18 May 2022 09:37:00 +0000