RISHI Sunak will cut income tax in a huge boost for workers – but it won’t come into force for up to TWO years.
The Chancellor delivered the upbeat news for 30 million workers as part of his Spring Statement, but it won’t kick in yet.
It means the basic rate of income tax will cut from 20p to 19p in the pound – and will affect 30 million Brits.
In the small print of the book, they say it will make the average taxpayer £175 better off.
The Chancellor promised to make the chances “before the end of this Parliament, in 2024” in a pre-election giveaway.
He told MPs: “For the first time in sixteen years, the basic rate of income tax will be cut from 20 ل 19 pence in the pound.
“A tax cut for workers, for pensioners, for savers. A £5bn tax cut for over 30 مليون شخص.
“It is fully costed and fully paid for in the plans announced today.
He has long been rumoured to be looking at an income tax cut in future – but only after he’s balanced the books after racking up billions of pounds worth of debt.
Mr Sunak said last weekend it was له “mission” to slash taxes before the end of the Parliament – and get back to Tory principles.
A one penny cut to the average income tax rate would see workers get to keep hundreds of pounds extra of their money earned every year – rather than see it go to the Treasury.
As part of his long-awaited Spring Statement, Mr Sunak confirmed:
- Fuel duty will be slashed by 5p in a huge win for The Sun’s Keep it Down Campaign
- National Insurance thresholds will be raised to take millions out of tax and cancel out some of the crippling hike
- He will abolish VAT on insulating homes to help drive down the cost of heating and go green
Yesterday the Office for National Statistics (ONS) said the Treasury collected £53.7billion in taxes last month, up more than £4billion on 2021.
Borrowing was a record £138.4billion, but still £21.2billion below the figure predicted by the Office for Budget Responsibility.
Treasury coffers have recovered faster than expected after the pandemic due to inflation although debt interest payments were the highest for a February since records began.
Read more on the Spring Statement
Former OBR boss Sir Charlie Bean said inflation has given Mr Sunak plenty of money to “play with” today to try ease the pain of hard up Brits.
ONS revealed the Treasury raked in £4.5billion more from motorists last year.
Drivers paid £24billion in fuel duty — up from £19.5billion in 2021 when fewer people were on the roads.