Rishi Sunak pointed to tax increases in next week’s budget and said, “I want to keep taxes low for the people … but I want to promise the British people that we are responsible with their money”

The Chancellor said that the budget from 3 March will contain an “honest and fair plan” to begin paying off the massive national debt that arose in the coronavirus crisis, which exceeded £ 2 trillion for the first time in history

And he made it clear that tightening the belt to pay for the pandemic will stretch for years into the future, telling Sky News’ Sophy Ridge on Sunday, “It will take some time to fix this”

Labour’s shadow chancellor Anneliese Dodds accused Mr. Sunak of “playing party politics” with public finances after reportedly telling Tory MPs that he wanted to get rid of tax hikes to bring them closer to the elections Expected year 2024

Ms Dodds said the Chancellor should “focus on securing the recovery” by making it clear that he will expand support measures such as corporate rate relief, hospitality tax breaks and vacation payments

The Shadow Chancellor said she was not ruling out tax increases in the longer term, but told BBC1’s Andrew Marr Show: “In terms of immediate tax increases, this should certainly not be the case right now””

She said the Chancellor’s approach was “a way out of the international mainstream” at a time when US President Joe Biden announced a dollar stimulus package

Mr Sunak stated that he will continue to support coronavirus through the end of Boris Johnson’s roadmap on Jan. June will extend and said, “We will continue to support the people when we reopen the economy”

But he gave a clear signal that the regulations would be lifted quickly once the restrictions are lifted and said the package would be brought into line with Mr Johnson’s schedule

Mr. Sunak declined to comment on reports that the household would be introducing a three-year income tax freeze as a “clandestine” way to raise $ 6 billion GBP will provide by forcing more people into higher bands with increasing incomes

And he declined to discuss expectations that he will raise corporate tax from 19 to 23 or 25 percent in the coming years

But he said, “What I want to deliver is the support of our economy, now that it is needed, the support along this roadmap that will help drive our recovery

“But equality with people and directly addressing the challenges we face over time due to the shock coronavirus have also torn our public finances and kept us on top of the people come up with an honest and fair plan to address this. And I think these things are both compatible ”

Mr. Sunak said he “disapproved” reports that he had saved $ 43 billion in savings Aim at GBP per year to bring public finances back into balance

But he made no commitments to stick to the promises made in the Conservative Manifesto of 2019 not to raise income tax rates, social security or sales tax

“I want to be able to keep taxes low for people in general,” he said, “I’m a conservative and I believe in it

“But I want to make our promises to the British people that we will be responsible with their money and look after the nation’s finances”

His comments came as a Savanta ComRes poll for The Independent, showing that corporate income tax hikes and property taxes on assets to cover coronavirus spending, which rose to around $ 280 billion last year GBP were heavily supported

Mr Sunak said the cost of servicing UK debt is currently affordable due to historically low interest rates, but was concerned about the impact if they rise

With a debt of around 100 percent of GDP, an increase in interest rates by one percentage point corresponds to additional interest of around 25 billion GBP per year

“Interest rates were very low, which allows us to pay slightly higher debts, but that can always change,” said the Chancellor

Ms. Dodds said the focus on tax increases – including community tax increases of up to 5 percent due to households affected this year – was the wrong priority in the coronavirus recovery at this point

“We’re an outlier because we’ve had the worst economic crisis of any major economy, but now we have a government that currently appears to be focused on raising taxes on families when other countries focus on securing recovery”she said Marr

The shadow chancellor said Labor would be “positive” about changes to the corporate tax system in the longer term

But she said that leftists like former party leader Ian Lavery, who attacked Sir Keir Starmer for resisting an immediate hike in business taxes, “got it wrong”

“When we speak to companies across the country like me, trust is really important to them,” said Ms. Dodds

“You don’t want to see a Chancellor focused on politics, focused on pushing through changes so he can wash his hands before the next general election”

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Rishi Sunak

World News – UK – Rishi Sunak hints at tax hikes in budget next week

Source: https://www.independent.co.uk/news/uk/politics/rishi-sunak-tax-rises-budget-covid-b1808641.html