Millions of Britons face ‘stealth tax raid’ under Liz Truss’s plan

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Millions of households are facing a “stealth” tax raid despite Ms Truss’s promise to support workers through the cost-of-living crisis by lowering their tax bills, the Institute for Fiscal Studies (IFS)said yesterday. The IFS has calculated that for every £1 given to workers by cutting tax rates, £2 was being taken via the freeze on income tax thresholds.

When taken with plans for benefits, the IFS said the poorest in Britain would see their incomes hit hardest over the next three years.

While the richest 10 percent of households will benefit by £2,290 a year on average from cuts to National Insurance and income tax, the poorest will benefit by just £13.

An HM Treasury spokesperson said: “This government is committed to a high growth and low tax economy and helping people to keep more of their hard-earned money is a key priority, as seen by our commitments to cancel the rise in national insurance and reduce the basic rate of income tax.

“The income tax system is highly progressive. This year, the top 50 percent of income taxpayers are expected to pay around 92 percent of total income tax, while the bottom 25 percent are expected to pay just two percent.”

More to follow…

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