Mr Sunak divided opinion with his Spending Review announcements last week, attracting criticism from senior politicians from both sides. The Government announced that it would temporarily cut foreign aid from 0.7 percent of national income to 0.5 percent. This attracted criticism from some of the country’s most well-known politicians, including former Prime Ministers Tony Blair and David Cameron. They both branded the decision a “moral and political mistake”.
Labour Shadow Chancellor Anneliese Dodds also hit out at Mr Sunak’s decision to freeze pay for public sector workers.
Mr Sunak defended himself, saying that frontline NHS staff and lower paid workers will get pay rises, but increases for others in the public sector were being “paused”.
Reports in recent months have suggested the Chancellor plans to hike taxes on the wealthiest.
With last week’s criticism adding more pressure, Mr Sunak could launch a “multi-billion pound tax raid” according to This is Money.
The Chancellor commissioned a Government review which looked at ways he could try to raise funds to help the country’s economy recover.
The Government review proposed that the maximum capital gains tax rate of 28 percent could be moved closer to top income tax rates in England and Wales (40 percent and 45 percent).
The suggested measures could also target profit shares investors can make tax-free, with other adjustments that could lead to an increase in inheritance tax bills.
Landlords, savers and entrepreneurs could be the main targets if the Chancellor follows through on the recommendations.
Tom Selby, senior analyst at AJ Bell, said earlier this month: “Landlords would be among the biggest losers from a capital gains tax hike, as second properties are subject to capital gains tax when they are sold.
The Office of Tax Simplification published the report, and laid out plans for a “£14billion tax raid” by the Chancellor.
The OTS said: “A rough static costing suggests that alignment of CGT rates with income tax rates could theoretically raise an additional £14billion a year for the Exchequer.”
Economist at Tax Research UK – Richard Murphy – told Express.co.uk earlier this year that Mr Sunak failed to take the pandemic seriously.
He also warned against tax hikes, warning the UK could then head for a “depression”.
He said: “At first, Rishi Sunak completely underestimated what was going to happen, it was a complete disaster, because he hadn’t realised how disastrous coronavirus was going to be.
