A tax giveaway to banks is set to soar to £7.3billion as the rest of the UK faces a cost-of-living nightmare.
Banks celebrated in autumn as Chancellor Rishi Sunak – a former investment banker – slashed the surcharge on profits from eight to three per cent.
Forecasters then predicted it meant the Treasury missing out on about £4.7billion in tax. But bumper investment banking revenues have forced the Office for Budget Responsibility to revise the figure upwards.
Lib Dems’ analysis suggests the cut will see banks keeping £2.6billion more than predicted.
The Lib Dems’ Treasury spokesperson 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.
“People were looking to him for help but he’s swindled them.”
The rise emerged as Labour warned the average household would still suffer a £3000 rise in indirect taxation over the next four years despite Sunak’s 1p cut in income tax.
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