Tax increases loom as government debt grows
Extra government borrowing suggests tax increases ahead
An extra £11.4bn was borrowed by the government in October, the worst figure
since records began.
With tax receipts falling by £4.1bn in the month compared to a year earlier,
according to OECD figures, pressure has increased on the government to increase
tax to cover the growing deficit.
Economists predict that the chancellor will miss his predicted borrowing
target for the fiscal year of £175bn, suggesting it could reach £220bn, reports
The
Times.
The rate of VAT will increase to 17.5% after a year at 15%, and advisers
predict that could increase further, alongside other increases for the
pre-Budget report on 9 December.
Capital gains tax could also increase from its 18% rate to bring it more in
line with income tax, and the introduction of the previously delayed 1% increase
in corporation tax for small businesses.
Bankers’ bonuses could also be at risk of a new tax.
Further reading: