'I'm afraid': UK Finance Minister Jeremy Hunt warns of tax hikes to cope with inflation after Truss fiasco
The new UK government issued a warning on Sunday (November 13) about the upcoming tax increase, particularly for the wealthy ones, as the administration aims to repair the economic damage caused by the Truss administration.
The administration is expected to release an emergency budget on Thursday.
Jeremy Hunt, the finance minister warned that the damage will disproportionately be on the better off when he'll unveil the budget, Sky News cited. After Truss' tax-cutting budget sparked alarm in the financial markets, he said, "We're all going to be paying a bit more tax, I'm afraid."
He acknowledged that the country's economy is likely to be in recession due to the July-September quarter, "but we are a resilient country and we've faced much bigger challenges, frankly, in our history". "We will be asking everyone for sacrifices."
The finance minister is currently looking for revising the income tax bands in order to increase money from incomes and by imposing strict curbs on government spending. he is seeking to collect £60 billion ($71 billion) in savings and extra revenue.
Hunt said that the increase in energy costs brought on by the Ukraine conflict cost the economy £140 billion.
Not just the energy prices, the country is also struggling with calming the medical professionals. Hunt recently denied a 17 per cent salary demand by the largest nursing union in the country, which decided to go on a strike for the first time since its existence. Hunt said that if the administration agrees to increase everyone's wage then the inflation would continue.
Rishi Suank, the current new prime minister has committed to get the spiralling inflation under control.