RISHI Sunak could wipe a penny off income tax as early as this year to save squeezed workers more cash.
The Chancellor is mulling whether he can bring forward the tax cut to this autumn rather than wait until 2024 as planned.Rishi Sunak is mulling wiping a penny off income tax earlier than expected[/caption]
Hopes rose further this morning as Foreign Secretary Liz Truss hailed a “low tax economy” was the key to beat back the crisis.
Reducing the basic rate of income tax from 20p to 19p would save millions of workers hundreds of pounds a year.
Tory MPs have been calling on him to slash taxes now to ease the burden on families battling price and bill hikes.
Mr Sunak flashed them a bit of leg yesterday by vowing to crack on with the 1p cut when the situation improves.
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He told the Commons: “Our priority is to keep cutting taxes for those in work, including by cutting income tax, as soon as the public finances allow.”
While it fuelled hopes of income tax slashes in the next autumn budget, the Treasury is not holding its breath for the economic storm to clear by then.
Alarming stats today show inflation running rampant at 9 per cent in fresh pain for families struggling to make ends meet.
The tax burden is also at its highest since the war as ministers seek to patch up the black hole left by huge pandemic spending.
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But Conservative MPs yesterday demanded Mr Sunak give workers a break with core Tory values by cutting taxes now.
Sir Edward Leigh said: “The fact remains that conservative Governments who have increased taxation during recession—such as those led by the first George Bush or John Major—go down to defeat.
“More importantly, millions of families are now desperately worried about how they will pay their bills.
“Will the Chancellor now say that his absolute priority, coming up to the Budget, is to reduce the overall tax burden on working families?
Ministers are also cooling on the idea of a windfall tax on oil and gas firms’ eye-watering profits.
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