Tax Cuts in UK
The unveiling of a massive tax cut ahead of next year’s general election will put the UK’s ‘dreaded’ public finances in even greater danger and risk a nightmarish scenario of even higher interest rates. Paul Johnson of the Institute for Fiscal Research urged both major parties to be honest about the serious tax and spending choices they face if they come to power. Rishi Sunak is still under intense pressure from his own MPs to cut taxes in March ahead of the next election. While the prime minister has made it clear that reducing inflation is his only economic priority for the moment, officials have privately hinted that he is interested in cuts such as lowering the income tax to 2p.
