 The Resolution Foundation warned half a million more people will be unemployed next year - with official forecasts set to warn of a recession. The think tank says there is a £40bn black hole if the Tories wish to 'balance the books' after the markets exploded at Ms Truss's borrowing spree. But the Tory promise to borrow less than they raise in tax has already been put back a decade to the mid-2020s, and could be delayed further. Critics argue many of the warnings - like the £50bn - are 'expectation management' and besides, now is not the right time for swingeing cuts. Here's what to expect so far. Stealth Income Tax and National Insurance rise The threshold where you start paying 20p Income Tax and 12p National Insurance - £12,570 - is already being frozen for four years until April 2026. Now the Chancellor is drawing up plans to freeze it for two more years, to April 2028. He would also freeze the £50,270 threshold at which you start paying 40p Income Tax. This massive stealth tax rise will net the Treasury £4bn a year, by dragging millions more people into higher tax brackets as salaries rise with inflation. The four-year freeze was already due to hit 27.1million basic rate taxpayers w){kind=link}
When is the Autumn Budget 2022 – and why isn’t it a full budget? Will the state pension increase in 2023, will there be an income tax shock, and will Universal Credit and benefits rise? Here’s everything you need to know
Tens of millions of Brits face “eye-watering” tax rises and spending cuts to fill a black hole of up to £50billion left by Liz Truss crashing the economy.
The Autumn Statement – which doesn’t have the status of a Budget, but is similar – will be announced on November 17 by new Chancellor Jeremy Hunt.
It’s set to announce about a half-and-half mix of tax rises and public spending cuts, despite services creaking under a decade of austerity. And the state pension or benefits could face a real-terms cut.
Weeks after Ms Truss’s failed tax cuts bid, a Treasury source said: “It is going to be rough.