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Adam Fayed Forum

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How will the new taxes in the UK affect people?

The new UK taxes announced will affect most people because the most significant changes are:

1. Increases in taxes by the back door. The allowances for income tax will be frozen for years. Assuming that average earnings grow by 2%, an inflation is also running at 2%, that will drag millions into higher thresholds.
2. UK corporation tax will increase on businesses with profits over 50k a year, and especially 250k a year.

There were other measures as well. The point is, there is no such thing as a free lunch. The money that was taken out by Covid will be paid by inflation or taxes.

Now sure, not all debt needs to be paid back, as governments aren't households. Yet to get the public finances on a sustainable footing will require more taxes and/or inflation to erode the debt.

There is no such thing as a free lunch.