Chancellor Philip Hammond is facing pressure from senior Conservative MPs to avoid tax hikes in next week’s budget, advising him to stay focused on economic responsibility and attracting investment to the UK.
Concerns are growing that Hammond will look to raise taxes to fund the £20bn pledge by Theresa May for the NHS when he addresses parliament next Monday.
The Institute for Fiscal Studies has estimated that the chancellor will need to find an additional £19bn in taxes in order to end spending austerity as May promised at last month’s party conference, while also balancing the books.
However, despite the Office for Budget Responsibility recently estimating that tax receipts were up by £11bn, Hammond could still need to increase national insurance contributions or abolish the tax-free allowance of £11,700 on capital gains to find the additional cash, according to research published by leading accountancy firm PwC.
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