£7.3BN BANK TAX BREAK
They roll in it as households hit
RISHI Sunak’s tax giveaway to banks is set to soar to £7.3billion as the rest of the country braces itself for a cost of living nightmare.
Banks celebrated in autumn after Mr Sunak slashed the surcharge on their profits from 8% to 3%.
But after forecasts predicted the Treasury would miss out on £4.7billion in tax, bumper investment banking revenues forced the Office for Budget Responsibility to revise the figure upwards. Lib Dem analysis suggests that banks will now keep around £2.6billion more.
It comes as the Resolution Foundation revealed 1.3 million people will be pushed into poverty next year.
Labour also warned that over the next four years, the average household would suffer a £3,000 rise in indirect taxation despite the Spring statement’s 1p cut in income tax. Shadow Chancellor Rachel Reeves said: “Mr Sunak thought he could fleece everyone with ‘jam tomorrow’ promises, while loading more taxes on families. It shows how out of touch he is.”
And Lib Dems’ Treasury spokeswoman, Christine Jardine, said: “It’s shameful that instead of helping all those struggling to put food on the table, the Chancellor is prioritising a giveaway to his banker mates.”
A Treasury spokesman confirmed the overall corporate tax rate for banks – currently 27% – will rise to 28% next year.
He also said that while the Government had to make “tough decisions to repair the public finances” following the pandemic, the Spring statement “delivers the biggest cut to personal taxes in over a quarter of a century”.