Sunak stokes tax rise fears

Gove yesterday

TAXES could soon rocket to help pay for this year’s massive economic bailouts, the Chancellor has hinted.

Rishi Sunak told MPs yesterday there are “tough choices ahead” as he begins to try to balance the books.

So far, the Government has spent £190billion on its response to the pandemic, with more stimulus expected in the Budget this autumn.

However, the Office for Budget Responsibility has warned Mr Sunak would need to put up taxes to bring public spending back under control.

It said the Government faces a gap of at least £60billion in its finances, equivalent to as much as 12p on the basic rate of income tax.

Appearing before MPs yesterday, the Chancellor said: “We, of course, look at everything all the time. In terms of what does that mean for spending and taxes, those are decisions that will have to wait until we get to Budgets. But there are tough choices ahead, that is clear.”