Households hit by stealth tax rises last year as Chancellor is urged to cut levies to boost economy
HOUSEHOLDS were hit by stealth tax rises last year, as the tax burden reached a record high of £786billion, up by 9.9 per cent in just 12 months.
Income tax and national insurance revenues alone rose by £40billion to £378billion, as inflation saw millions more dragged into higher tax bands.
Experts say Chancellor Jeremy Hunt has room to cut taxes after borrowing came in at £13billion less than the Office for Budget Responsibility predicted.
Ex-Business Secretary Jacob Rees-Mogg said: “Taxes are higher than they need to be, stifling growth because of incompetent forecasters.”
Mr Hunt, who has previously refused to commit to cutting taxes before the next election, this week said business rates were “too high”.
The Chancellor was given more scope to reduce taxation later this year despite adding £139 billion to the government credit card in the past twelve months.
Total public debt now stands £2.5 trillion the equivalent of a record £90,000 for every household.
Furious Tory MPs demand swingeing tax cuts as the borrowing figures were less than Office of Budget Responsibility forecast just weeks ago.
Ex-Cabinet Minister John Redwood said: “We cannot afford not to cut taxes. The way to get the deficit down is to grow faster, we need lower tax rates for faster growth.
“Ireland collects far more tax from business proportionately than we do by charging half our rate. Businesses rush to Ireland instead of the UK. “