UK Gov’t to Raise Taxes by Over $51Bln to Improve Economic Situation – Finance Minister
The Victoria Tower and the Houses of Parliament are silhouetted under a cloudy sky in Westminster, in London, Monday, Aug. 22, 2022.
MOSCOW (Sputnik) – The UK government intends to raise taxes to attract an additional 40 billion pounds ($51.8 billion) to the treasury amid economic difficulties and a multi-billion-dollar hole in the budget, UK Chancellor of the Exchequer Rachel Reeves said. “This budget raises taxes by 40 billion pounds,” Reeves said on Wednesday, presenting the first financial plan of the new Labor government in the parliament. In particular, the government will increase the rate of mandatory contributions to the national insurance system for employers, as well as increase capital gains tax, excess profit tax for energy companies and a number of others. At the same time, the government intends to raise excise taxes on carbonated drinks, introduce VAT on tuition fees in private schools, and introduce duties on vaping products in 2026. The plan also includes the abolition of a special tax regime for people who are domiciled outside the United Kingdom. 
Energy Crisis in EuropeUK on Track for Biggest Tax Hike Since WWII – Think Tank29 September 2023, 13:14 GMTIn July, Reeves said the UK economy was in its worst condition since World War II. She later noted that the previous Conservative government left a 22 billion pound “hole” in the budget.
