Tax Hikes Not Ruled Out

Published / Last Updated on 23/04/2017

Tax Hikes Not Ruled Out.

Chancellor Phillip Hammond has been criticised by other parties and the popular press for refusing to rule out tax rises in the future by suggesting that the Government needs flexibility on the same.  This follows the Conservative Manifesto promise two years that they would not increase taxes.

The reality is taxes have gone up.  Ask any property investor buying property with higher stamp duty land tax, ask any landlord with expenses relief being reduced.  Ask any higher earner about tax penalties via tapered annual pension allowances and reduced lifetime allowances.  Ask any business owner or investor about dividend tax increases within the basic rate tax band.

The reality is that taxes do rise and fall depending upon our economic performance and government spending needs.  It is simply not sensible for one party or another to say that will or will not increase, decrease or freeze taxes or keep the State Pension ‘triple lock’ when we do not know the outcome of Brexit negotiations and other trade deals let alone UK economic prosperity in 5 or 10 years’ time.

We expect changes to taxes, we accept taxes may rise irrespective of which party is elected.  We also expect major changes to pensions and tax relief that were postponed by the then Chancellor, George Osborne.

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