Jeremy Hunt’s 10-year stealth tax on middle-class families

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Research shows middle-class families will be up to £40,000 worse off over the next 10 years, as a result of ghost taxes introduced by Jeremy Hunt to plug the gap in government funding.

The chancellor’s plan to freeze income tax caps until 2028 at the earliest, announced in an autumn statement last month, has dragged thousands of families into paying taxes while earnings fail to keep pace with inflation.

Research from the House of Commons Library, published in The Times, showed that a household with two returns on £60,000 a year would be £40,880 worse off over the next decade than it would have been if income tax thresholds had risen in parallel with inflation.

Hunt and his allies believe a stealth raid is needed to plug a multi-billion-pound hole in government finances, but experts fear it could tip Britain into a higher tax cycle.

For example, The Times found that a worker earning £60,000 a year would pay an estimated more than £134,000 in income tax over the next decade, a tax bill 18 per cent higher than it would have been had the limits not been frozen. The world. .

The analysis, which was commissioned by the Liberal Democrats, found that low-income workers would also be affected by the hidden tax hike and someone with an average salary of around £33,000 would pay an extra £4,040 in income tax.

Sir Ed Davey, leader of the Liberal Democrat party, said the government changes represented “a wasted decade of unfair tax increases and high inflation”.

“Families watch in awe as their paychecks go down while mortgage costs go up. It is absolutely shameful that a Conservative government has chosen to cut taxes for the big banks while raising them for the public.”

Citizens Advice chairwoman Claire Moriarty warned that high-income families were turning to charity amid the cost of living crisis, saying the organization was seeing people who “thought they would never need us”.

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