Hammond seeks to delay vote on tax reforms
Philip Hammond is said to be planning a "pain delayed" budget which will mean 30m households facing higher income tax in 2022. The chancellor could raise up to £3.1bn a year by freezing the point at which people start paying basic rate income tax and higher rate income tax after they reach the manifesto target of £12,500 and £50,000. The Resolution Foundation believes that due to higher than forecast inflation, the basic rate commitment will be achieved in April 2021 and the higher rate in April 2022, meaning that the thresholds could be frozen in 2022. This would mean a further 30m people paying more tax and hundreds of thousands being dragged into higher tax brackets. The Treasury has reportedly decided that Mr Hammond has to raise cash in the Budget without risking a Commons vote on the specific tax rise.
Source: The Times (16/11/2017)