Budget will focus on shoring up British economy

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

This is a disaster for many low-income families struggling to cope with the rising cost of living.

Mr Sunak has been under increasing pressure to slash the tax, however, sources from the Treasury suggested he thought that the cut would subsidise high-income households, while not doing enough to help poorer families.

The present VAT rate on fuel bills is five per cent and sets struggling families back by around £60 a year.

However, scrapping the tax would cost the treasury around £1.6billion.
Shadow chancellor Rachel Reeves has urged ministers to scrap the tax, noting that the cut was a promise they made during the 2016 Brexit referendum campaign.

In a joint letter at the time Boris Johnson and Michael Gove wrote: “’When we Vote Leave, we will be able to scrap this unfair and damaging tax.
“It isn’t right that unelected bureaucrats in Brussels impose taxes on the poorest and elected British politicians can do nothing.’

However, Mr Sunak has promised to raise the minimum wage from £8.91 to £9.50 next year, which will mean millions of workers will get an extra £1,000 a year.

FOLLOW BELOW FOR LIVE UPDATES…

Minimum wage to rise to £9.50

The minimum wage will be raised from £8.91 to £9.50 next year. meaning millions more earners will get an extra £1,000 a year. 

However, critics are demanding to know where the money will come from, since the country is in debt by around £400billion due to the covid crisis.  

Shadow chancellor calls on government to scrap energy tax

Labour’s shadow chancellor Rachel Reeves has called on the government to follow through with the promise they made in the 2016 election and scrap energy tax. 

In an interview with the Mail, she said:  “They said it in the referendum campaign so why have they not done it?

What more evidence do you need to cut VAT domestic energy bills?

This is the time to do it when they are soaring so much. 

The good thing about cutting VAT is it can be done immediately and automatically on bills.

So people don’t have to apply for it, there’s no bureaucracy to go through and everybody is affected by rising gas electricity bills.”

Source: Read Full Article