Millions of workers in the UK could be considerably worse off financially under a new scheme being discussed by the Government.
Chancellor Jeremy Hunt and Prime Minister Rishi Sunak want to implement a stealth tax on middle earners, to try to plug a hole in money since Liz Truss' disastrous mini Budget. The Chancellor wants to extend a freeze on income tax thresholds until 2028.
This would mean people on £50,000 a year would lose £3,659 in tax. Mr Hunt will set out his plans in the Autumn Statement on November 17 and is considering splitting the burden equally between tax rises and spending cuts, Birmingham Live reports.
READ MORE: DWP urging a million households to claim extra £65 a week
A Treasury source told the PA news agency that "no decisions have been taken" and the "independent pay review body process takes place next year". With BP unveiling profits that doubled to more than £7.1 billion in the three months to September, pressure is continuing to mount for an enhanced windfall tax on oil and gas giants to help fill the Treasury coffers.
James Smith, research director at the Resolution Foundation, said: "The Government has a little over two weeks to finalise its plans to repair its economic credibility and the sustainability of the public finances. While the recent focus has been on conditions improving post-Trussonomics, the central picture remains one of a weaker growth, higher borrowing costs and expensive tax cuts that have left a fiscal hole of at least £40 billion to fill."
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