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...
