The Prime Minister has instructed his Cabinet colleagues to generate innovative solutions for addressing the rising cost of living, which is starting to have a significant impact on household budgets. As the price of energy continues to soar, food prices are expected to rise due to the effects of the war in Ukraine and the recent lockdowns in China, which are now being felt globally.
Ministers from various departments are investigating whether there are any unclaimed targeted assistance programs that eligible individuals could be directed towards. This includes benefits like pension credit. The Department for Work and Pensions (DWP) reports that up to £1.7 billion went unclaimed last year, equating to around £1,900 for each family entitled to financial support. The low uptake is primarily because people are unaware of these benefits, or find the process of filling out forms too burdensome. The Prime Minister is also eager to explore ways to reduce childcare costs.
However, one simpler way to alleviate financial strain is to allow people to retain more of their own earnings. Recent data reveals that despite the struggling economy during the pandemic, the Treasury has collected record-breaking amounts in income tax, National Insurance, capital gains, and inheritance taxes. In the past year, HM Revenue & Customs received £718.2 billion, a nearly 25% increase from the previous year. Tax receipts now account for 30% of GDP, up from 27% the previous year.
The revenue has consistently risen each year since the Conservatives assumed power under the coalition government led by David Cameron in 2010, with the exception of when VAT was reduced to 5% to mitigate the economic impact of lockdowns. Middle class professionals have primarily shouldered the burden of this phenomenon known as fiscal drag, where freezing of allowances pushes individuals into higher tax brackets.
Under a Conservative Government that ostensibly champions low taxes, the overall tax burden has reached an unprecedented high.
The Government has rightfully identified the rising cost of living as a significant threat to the well-being of voters and, consequently, to the electoral prospects of the Tory party.
Instead of searching for new ideas, Mr. Johnson and Mr. Sunak should consider the solution right in front of them and reduce taxes. The Chancellor’s next budget is scheduled for the autumn, and any announced cuts would not take effect until next spring. However, an emergency package is necessary to address the issue in a timely manner.
Reference
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
The Prime Minister has instructed his Cabinet colleagues to generate innovative solutions for addressing the rising cost of living, which is starting to have a significant impact on household budgets. As the price of energy continues to soar, food prices are expected to rise due to the effects of the war in Ukraine and the recent lockdowns in China, which are now being felt globally.
Ministers from various departments are investigating whether there are any unclaimed targeted assistance programs that eligible individuals could be directed towards. This includes benefits like pension credit. The Department for Work and Pensions (DWP) reports that up to £1.7 billion went unclaimed last year, equating to around £1,900 for each family entitled to financial support. The low uptake is primarily because people are unaware of these benefits, or find the process of filling out forms too burdensome. The Prime Minister is also eager to explore ways to reduce childcare costs.
However, one simpler way to alleviate financial strain is to allow people to retain more of their own earnings. Recent data reveals that despite the struggling economy during the pandemic, the Treasury has collected record-breaking amounts in income tax, National Insurance, capital gains, and inheritance taxes. In the past year, HM Revenue & Customs received £718.2 billion, a nearly 25% increase from the previous year. Tax receipts now account for 30% of GDP, up from 27% the previous year.
The revenue has consistently risen each year since the Conservatives assumed power under the coalition government led by David Cameron in 2010, with the exception of when VAT was reduced to 5% to mitigate the economic impact of lockdowns. Middle class professionals have primarily shouldered the burden of this phenomenon known as fiscal drag, where freezing of allowances pushes individuals into higher tax brackets.
Under a Conservative Government that ostensibly champions low taxes, the overall tax burden has reached an unprecedented high.
The Government has rightfully identified the rising cost of living as a significant threat to the well-being of voters and, consequently, to the electoral prospects of the Tory party.
Instead of searching for new ideas, Mr. Johnson and Mr. Sunak should consider the solution right in front of them and reduce taxes. The Chancellor’s next budget is scheduled for the autumn, and any announced cuts would not take effect until next spring. However, an emergency package is necessary to address the issue in a timely manner.