UK Chancellor Announces Tax Cuts Amid Rising Tax Burden

Despite the cuts, the overall tax burden is set to rise to a post-war high, with millions more workers expected to be liable for income tax.

UK Chancellor Jeremy Hunt has announced tax cuts and an increase in the state pension by 8.5% in his autumn statement, with the changes expected to benefit workers such as nurses and police officers.
The tax cuts, which include a reduction in national insurance, are expected to cost the government £9bn, but are dwarfed by the £45bn the government is set to raise by freezing tax thresholds during a period of high inflation.
Despite the tax cuts, the overall tax burden is set to rise each year to a post-war high of 37.7% of GDP by 2028-2029.
The Office for Budget Responsibility (OBR) predicts that four million more low-paid workers will be liable for income tax between 2022/23 to 2028/29, and three million more will have moved to the higher rate of tax.
Despite the tax cuts, the OBR has downgraded its forecast for growth in 2024 from 1.8% to just 0.7%, and expects real disposable household income to fall by 0.9%.