The UK Treasury has warned of an “inevitable” tax hike as Prime Minister Rishi Sunak seeks to fill a gap in public finances.
On Tuesday, Sunak met with Treasury Secretary Jeremy Hunt to discuss options for the financial report, which will be announced on November 17. They agreed that “tough decisions” were needed to increase taxes as well as spending.
Although the Treasury Department did not provide any details about the meeting, it stressed that “everyone should pay more taxes in the coming years.”
“Given the scale of the financial black hole, the Prime Minister and the Treasury Department (Treasury) agreed that tough decisions are needed to increase taxes as well as spending,” she said.
While sources at the ministry have not given an exact figure for what they have called a “financial black hole”, however, it could be as high as £50bn, according to the BBC.
The source said that “the budget is going to be tight… The truth is that everyone will need to pay more taxes if we want to support utilities”, noting that “considering the amount of loans to support electricity bills and combat the Covid Pandemic -19 we won’t be able to fill the hole.” Financial blackness only by cutting costs.