UK’s Hunt may make more Britons pay top income tax rate

CHANCELLOR of the Exchequer Jeremy Hunt is considering hitting more Britons with the top rate of income tax as Prime Minister Rishi Sunak’s government seeks ways to stabilise the UK’s public finances.

Hunt is thinking about lowering the £150,000 (S$240,329) threshold at which the 45 per cent higher rate of income tax is paid, according to two officials familiar with the matter, who spoke on condition of anonymity because no final decisions have been taken.

A Treasury spokesperson declined to comment. Newspapers including the Sun and Mail first reported Hunt is considering the move.

Hunt and Sunak are seeking more than £50 billion of spending cuts and tax rises to try to restore market confidence after the disastrous tenure of former premier Liz Truss. Her administration said it would remove the top rate of income tax, before hastily reversing course during the financial turmoil triggered by her economic plans.

In his statement on Nov 17, Hunt is expected to announce measures including an expanded windfall tax on the profits of energy firms, freezing foreign aid and increasing capital gains tax.

His challenge is to satisfy markets with his package without also aggravating the depth of a recession in the UK and upsetting voters, at a time when Sunak’s Conservative Party is already well behind in the polls. BLOOMBERG