"The UK's debt interest is close to £100bn, growth is stuck below 1%, and spending-especially defence-is moving materially higher. This combination leaves a hole of what is likely to be around £20bn. The money has to come from somewhere."
"No single pressure explains it, but together, they leave very little room. That's why stealth taxes move to the front."
"Freezing thresholds for longer is one of the easiest ways to raise billions."
The UK government faces significant fiscal pressures, with debt interest nearing £100bn and growth stagnating below 1%. Spending, particularly on defense, is increasing, creating a £20bn shortfall. Higher borrowing costs and limited tax revenue growth exacerbate the situation. The government is likely to resort to stealth taxes, which involve raising revenue without changing headline rates. Freezing income tax thresholds until 2028 will pull more taxpayers into higher bands, making it a straightforward method to generate additional revenue.
Read at London Business News | Londonlovesbusiness.com
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