Ed Davey slams “Hunt hoax” over £200bn stealth tax grab

23 Nov 2023

EMBARGO: For Immediate Release

Liberal Democrat Leader Ed Davey has slammed the Chancellor’s “Hunt hoax,” after figures revealed a £200bn stealth tax grab over the next six years.

The Office for Budget Responsibility (OBR) forecasts show the freezing of income tax and National Insurance thresholds is due to raise £201bn between now and 2028-29.

The figures also show 7.4 million people are set to be dragged into a higher rate of tax over the next six years. 4 million people are set to be brought into paying income tax for the first time by 2028-29, while 3 million will be dragged into paying the higher 40p rate.

It comes despite a Conservative Party promise not to raise the income tax rate in their 2019 manifesto.

Liberal Democrat Leader Ed Davey MP said:

“This Autumn Statement was a Hunt hoax. Buried in the small print is a massive stealth tax raid that will drag millions into paying a higher rate in the coming years.

“The British people will rightly be furious at this deception, as they are forced to pay the price for Conservative chaos through years of unfair tax hikes.

“It is high time that this Conservative government came clean about just how much money they are taking out of hard-working families' pockets.

ENDS

Notes to Editor

Box 3.1 on pages 69-71 of the OBR Economic and Fiscal Outlook shows that:

By 2028-29, 7.4m people will pay a higher rate of income tax because of the threshold freezes:
- 4m people brought into paying income tax
- 3m people brought into paying the 40p rate
- 0.4m people brought into paying the 45p rate
The total additional government revenue from the income tax and national insurance threshold freezes over 6 years (2023-24 to 2028-29) will be £201bn.
The £201bn stealth tax raid is four times as much as the £50.5bn of tax giveaways over the next 6 years from the three changes to NICs (Source: Table 5.1)