Personal Finance. Money. Investing.

UK Government Planning £2 Billion In Cuts And Highest Peacetime Tax Rate

Chancellor of the Exchequer Rishi Sunak is set to introduce cuts worth £2 billion for government departments tasked with meeting the Conservative party’s flagship “levelling up” agenda, while simultaneously planning the highest tax raid of this generation.

Posted: 12th October 2021 by Finance Monthly
Share this article

The Institute For Fiscal Studies (IFS) said Sunak was on track to lift the UK’s tax burden to the highest sustained level seen during peacetime as he prepares to unveil a package of tax increases at this month’s budget and spending review. The introduction of any tax hike will go against the Conservative manifesto for the December 2019 election, which stated: “We will not raise the rate of income tax, VAT or National Insurance.”

The tax raid would help fund an expansion in the UK to the highest level of government spending since the 1980s. However, the IFS said several government departments would still face budget cuts. It warned that continually squeezed areas, such as prisons, further education, and local government could see their budgets shrink by more than £2 billion next year.

These budgets were cut substantially in the 2010s, and a further round of cuts would be difficult to reconcile with the government’s stated objectives – particularly around ‘levelling up’,” the IFS said.

The IFS also accused the government of effectively “smuggling in” tax rises under the cover of the pandemic and as living costs increase amid the ongoing energy crisis

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram