Camilla Wallace peruses possible paths ahead for repayment of Covid borrowing

On 7 September 2021, Boris Johnson announced the first major tax overhaul to raise funds to support the NHS post-pandemic, and to pay for a social care reform package. The announced reforms to national insurance and the dividend tax rate are forecast to raise £14bn a year when they come into force in April 2022. However, they are not intended to specifically reduce the enormous public debt that has mounted following the pandemic (£78bn at the end of July 2021). It is therefore quite feasible that we will see further tax rises to help reduce Covid-related borrowing – and Boris Johnson has refused to rule out that this may happen during this Parliament. With recent consultations and reports in respect of capital gains tax...

Camilla Wallace

This article is part of a subscription-based access, to continue reading, please contact your library