‘Inevitable’ all Britons will pay more tax, Sunak and Hunt say as UK economy teeters
- UK PM Rishi Sunak faces unappealing choices ahead of a budget statement due on November 17
- Britain has a £40 billion budget hole that will need to be filled by tax rises as well as spending cuts
Rishi Sunak’s government said it’s inevitable that all Britons, especially the richest, will have to pay more tax to restore stability to the public finances.
They discussed the “eye-watering” gap in Britain’s public finances, and agreed “tough decisions” are needed on tax rises and on spending, according to a Treasury readout.
“They agreed on the principle that those with the broadest shoulders should be asked to bear the greatest burden,” the Treasury said. “However, given the enormity of the challenge, it is inevitable that everybody would need to contribute more in tax in the years ahead.”
The measures are necessary to bring calm to financial markets that dumped UK government bonds and the pound after Liz Truss’ tumultuous 44 days as prime minister.
Two leading research groups on Tuesday said Sunak and Hunt can’t rely on spending cuts when they present autumn statement. The government is having to bear down on the deficit while the economy teeters on the brink of recession and inflation lingers at a 40-year high.