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UK households will be hit by annual tax increases of up to £800 after the election based on the decisions of the last parliament that also included the Labor Party, according to a leading think tank. Neither the movement nor the Conservative Party have said they will reverse.
The Resolution Foundation said on Saturday that while the two main parties were arguing over the possibility of tax increases after the armistice election on July 4, there have been “much larger tax increases . . . hiding in plain sight” amounted to £23 billion.
The think tank said the biggest tax hike coming up in the next parliament is the continued freeze on income tax and the six-year Employee National Insurance threshold, which will increase by £9bn a year by 2028-29. Freezing employers’ National Insurance thresholds would generate an additional £2 billion.
In a report, Resolution said that with temporary cuts to business rates, fuel duty and land tax ending in spring 2025, planned tax increases would increase the equivalent of around £800 per year. year for every household in the UK.
Adam Corlett, the institute’s chief economist, said politicians “should talk to the public and admit that taxes will rise for whoever wins the election, even if it’s less exciting than the news.” Regular elections include secret information and controversial records.” ”.
Tax is at the heart of the general election campaign, with Rishi Sunak as Chancellor declare in the first televised debate this week that Labor would increase household tax by £2,000 if it wins power.
Sunak said in the ITV debate that the figure was based on independent analysis by Treasury civil servants, but Labor leader Sir Keir Starmer dismissed it as “nonsense” and “complete rubbish”. rubbish”.
It was later learned that James Bowler, the permanent secretary of the Treasury, had pour cold water Sunak, according to the statement, told the Labor Party in a letter that the figure included “costs in excess of those provided by the civil service and published online by HM Treasury”.
Neither main party has yet published its election manifesto, but Starmer and senior Labor figures on Friday signed the party’s document, which includes a pledge not to increase four main taxes: income, national insurance, value added tax or corporation tax.
Labor has introduced some limited tax increases, including the imposition of VAT on private school tuition.
The Conservatives have proposed £2bn tax cuts for pensioners and child benefit reforms, which would have tax implications for higher earners.
Both parties have promised to tackle tax evasion, but Corlett said they are “keeping quiet” about planned post-election tax increases.
The Resolution Foundation’s report points to a record of tax increases occurring after the election. It notes that after the past eight national votes, the first two fiscal events of each parliament have introduced new policies that have increased taxes by an average of £21 billion a year.
