Treasury won’t discuss £20bn tax hike reports
The Chief Secretary to the Treasury has refused to be drawn on reports that the Government is eyeing a £20 billion tax hike in the autumn to deal with the cost of the coronavirus crisis.
The Treasury is looking at raising corporation tax and capital gains tax and cutting pension tax relief among a raft of other revenue-raising measures, according to newspaper reports.
Chancellor Rishi Sunak is considering hiking corporation tax from 19 per cent to 24 per cent in order to boost revenue by £12 billion next year, the reports indicated.
Capital gains tax might also be paid at the same rate as income tax, under the ideas reportedly being looked at.
Pension tax relief could be “slashed” under measures being considered by the Treasury to help pay for the Covid-19 crisis, it was rep or ted, with raising fuel and other duties also being looked at.
A revamp of the inheritance tax system and the introduction of an online sales tax were
also reportedly being considered.
Stephen Bar clay insisted such issues were a matter for the Budget.
He said: “Treasury ministers don’t get into what a Budget will or will not do. And particularly on tax measures ahead of that, that’s for the Chancellor, the Budget.
“The real objective is to reduce the economic scarring from Covid.”
Former Cabinet minister Damian Green, who served as then prime minister Theresa May’s de facto deputy, said he was war y about any changes to the so-called pensions “triple lock”.