Chancellor Jeremy Hunt has stated his intent to bring an end to the continuous increase in taxes by making changes to public services and the benefits system. His announcement comes just as some senior Tories are pushing for tax cuts ahead of this week’s party conference. However, MPs like Liz Truss and Dame Priti Patel have said they won’t vote for any further tax burden increase. Mr Hunt remarked that for now, “we’re not in a position to talk about tax cuts.” Speaking to The Times, he urged for an improved state that doesn’t just deliver the required services, but also enhances them. He clarified that without a formula that halts the constant rise of taxes, improving public services and supporting an ageing population won’t be possible.
Mr Hunt cited the use of artificial intelligence and a reduction in the clerical workload of public sector staff as ways to uphold service efficiency. Previously, he had also dismissed tax cuts in November’s Autumn Statement, stating that it would be “virtually impossible.” Over 30 Tory MPs have publically agreed to never vote for any increase in overall taxes. Signatories include former Prime Minister Ms Truss, ex-Home Secretary Dame Priti Patel, and former ministers Sir Jacob Rees-Mogg, Sir Jake Berry and Sir Brandon Lewis.
Furthermore, the Institute for Fiscal Studies (IFS) published a report this week revealing that taxes in the UK are at their highest amount since 70 years ago when records began. The IFS stated that this Parliament oversaw the largest increase since the Second World War, and taxes are expected to rise by 37% by the next general election. The increase is equivalent to around £3,500 more per household. Its director Paul Johnson states that the population’s ageing process will mean more spending on pensions and health, making it highly probable that tax rates will remain elevated in the future
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