Chancellor reveals £25bn in tax increases

Jeremy Hunt has set out plans for almost £25bn in tax increases and more than £30bn in spending cuts as he looks to balance the nation’s books. The Chancellor announced that the threshold at which the 45p top rate of income tax is paid will be reduced from £150,000 to £125,140. This will see 232,000 more people paying the top rate of tax from April 2023. A freeze on income tax thresholds mean an extra 92,000 people will be paying income tax and 130,000 will be paying the higher rate in 2027/28. Meanwhile, the tax-free allowance for capital gains will reduce from £12,300 to £6,000 in 2023/24 and then to £3,000 in 2024/25. The Office for Budget Responsibility said the tax burden – the ratio of taxes as a share of GDP – will peak at 37.5%, with this its highest level since the end of the Second World War.

The Daily Telegraph

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