RISHI REWARD
Rishi Sunak vows to cut taxes for working people in major speech – what it means for you
RISHI Sunak has vowed to cut taxes for working Brits in a major speech.
The PM today assured the nation he can end the cost of living and strike misery - as well as finally tackling illegal immigration.
1
Billed as a “reset” moment for his premiership, it is the Mr Sunak has given since entering No10 in October.
Alongside his core five promises to the nation, the PM vowed to "reduce the burden of taxation".
He told the UK: "If we're going to deliver this better future, people will have to work hard, but I believe good well paid jobs are about more than just financial security.
"They give people purpose, confidence, dignity, the chance to build a better life from themselves.
Read more UK news
"But I also believe that if you work hard and play by the rules, you should be rewarded and which is why as soon as we can the government will reduce the burden of taxation on working people."
While exactly what measures Mr Sunak plans on introducing remains unclear, it comes as Britain remains grappled by the biggest tax burden since World War Two.
In his Autumn Statement, Chancellor Jeremy Hunt delayed £30billion of painful spending cuts until after the next election — with a surprise increase in the NHS and education budgets.
At the end of last year, Chancellor Jeremy Hunt ruled out any cut to income tax.
Most read in Money
Instead, he extended the freeze on income tax and National Insurance thresholds until 2028.
With the OBR fiscal watchdog now warning the country is officially in recession, the Chancellor increased spending by an extra £9billion until 2025.
While protecting pensioners, benefit claimants and the lowest paid from inflation, the Autumn Statement left almost everyone else picking up the tab.
How tax changes affect you
If Sunak goes ahead with tax cuts, it could come as a lifeline to millions of Brits although it's not yet clear exactly who would benefit.
The freeze on tax thresholds in the Autumn Statement is currently set to drag millions more into paying more tax.
That is because inflation and rising wages will mean more workers will go over the thresholds for paying higher tax.
Thresholds would usually be tweaked to take both of those things into account.
This means someone on the average UK salary of £33,000 paying almost £2,557 more income tax between now and 2028.
The basic rate of income tax currently kicks in on earnings over £12,571, and the higher rate of 40 per cent at £50,271.
is a tax on your earnings and is deducted from your wages each month.
You pay National Insurance if you’re 16 or over and either:
- an employee earning above £242 a week
- self-employed and making a profit of £6,725 or more a year
This sneaky stealth tax is expected to bring in £30billion a year by 2026.
READ MORE SUN STORIES
A stealth tax is a form of tax collected in a way that isn’t obvious.
In the Autumn Statement, the Chancellor also targeted the well-off by cutting the 45p rate threshold from £150,000 to £125,140.
Topics