Tax stimulus ahead?

Sunak considers NI holidays while tax rises are unlikely The Telegraph reports that Chancellor Rishi Sunak is considering national insurance holidays for companies as part of an economic recovery stimulus package set to be unveiled next month. Citing a source close to discussions on the measures being considered, the paper says tax increases under discussion in the Treasury, including raising income tax and VAT, are likely to be delayed until growth recovers. The source said: “This will not be a consolidation Budget – tax rises won't happen until the recovery is in train", adding: “If you raise taxes while the economy is struggling at 1%, you could choke off economic growth." It is also suggested that stemming unemployment will be a focus of Mr Sunak’s stimulus package, with tax incentives or direct subsidies for employers who hire new staff among options that have been mooted.