Revealed: Energy bill support wiped out by stealth tax hikes

EMBARGO: For Immediate Release

Revealed: Energy bill support wiped out by stealth tax hikes

The freezing of income tax thresholds will lead to a tax bombshell of £12 billion in 2023-24, the latest forecasts from the OBR show. This compares to the cost of almost £3 billion in 2023-24 of extending the Energy Price Guarantee for three months. 

The Conservative government’s freezing of tax thresholds will lead to a total stealth tax grab of £29.3 billion by 2027-28, or a total of £120 billion over the coming five years, with 3.2 million people dragged into paying income tax and 2.1 million into the higher rate.

The Liberal Democrats are calling on the Chancellor to publish an assessment of how much these stealth tax hikes will cost families across the country, including a breakdown by constituency.

Liberal Democrat Treasury Spokesperson Sarah Olney MP said:

“Conservative stealth taxes are more than wiping out the meagre support being offered to families with soaring energy bills.

“It is a stealth tax bombshell for the hard working middle, coming on top of rising food prices and mortgage payments. 

“Jeremy Hunt must come clean about the impact of these tax hikes on households across the country. Families are trying to budget from month-to-month, and they need to know just how bad these tax hikes will be.”

ENDS

Notes to Editor

Impact of frozen or reduced personal tax thresholds (OBR Economic and Fiscal Outlook, table A, p65-66)