Newspaper: Sunak government plans to raise taxes to cover budget deficit

British Prime Minister Rishi Sunak plans to raise taxes to cover a £50bn British budget deficit, the Financial Times reported.

The newspaper, citing sources in the UK Treasury, reported that Treasury Secretary Jeremy Hunt agreed with the Prime Minister to work in this direction.

“It won’t be easy,” an unnamed ministry official said. “The reality is that everyone will have to pay big taxes if we’re going to support public services.”

He added: “Having borrowed hundreds of billions during the corona virus epidemic and given widespread support to the population in paying their electricity bills, we will not be able to fill the budget gap by cutting spending alone.”

It is noteworthy that former British Prime Minister Liz Truss presented a tax cut plan at the end of September, but her program caused a lot of criticism, and the markets responded to it with a retreat, which led to the dismissal of the finance minister in the government. Tres-Kwasi-Quarting, and then the resignation of Truss itself.

It is noteworthy that Britain may face the biggest drop in living standards since the fifties of the last century due to the energy crisis. Inflation in the UK hit its highest level in 40 years.

The government is expected to present its new tax program on 17 November.

Source: TASS