Boris Johnson recommends not raise taxes despite pandemic

By Archive Email Matt Thompson "href " https://www.law360.com/articles/1289683/# "> Matt Thompson Law360 provides free access to its coronavirus coverage to ensure that all members of the legal community have accurate information at this time of uncertainty and change. Use the form below to subscribe to one of our daily newsletters. By subscribing to one of our section newsletters, you are subscribing to the daily coronavirus briefing. Law360 (July 7, 2020, 1:23 p.m. EDT) - British Prime Minister Boris Johnson has declared that his party will honor promises made during the December election campaign not to raise taxes despite the enormous cost of the new coronavirus pandemic .Johnson, visiting the site of a new railway equipment factory on Monday, has promised to respect the Conservative Party's commitment, made in its December election manifesto, not to increase the rate of value added tax, l income tax or social security. His comment, in response to a question from a reporter for the Yorkshire Post Regional, comes after the economic impact of the pandemic has reduced tax revenues while public spending has exploded. The UK Bureau of Budget Responsibility has stated that £ 120 billion ($ 151 billion) has been spent on economic measures to combat the effects of the pandemic, such as paying wages to workers who cannot work in reason for locking the country. Despite this, Johnson said his pledge not to raise these taxes during his first full term as Prime Minister remains valid.In May, a disclosed HM Treasury document has shown that the Johnson government is planning tax increases and spending cuts this year in the belief that the UK budget deficit will reach £ 337 billion by the end of the current fiscal year in April 2021.Before the pandemic, the deficit had to reach £ 55 billion. Tax increases and spending cuts could increase up to £ 30 billion by adding 5 pence a pound to the basic income tax rate, freezing public sector wages for two years or putting an end to compulsory wage increases above inflation for the state pension, according to the document.Johnson's statement came just a day before the chief treasurer, Chancellor of the Exchequer Rishi Sunak, made an economic update. He is expected to widely announce new measures to help the UK economy and public finances to overcome the pandemic.Sunak will use what is billed as a mini-budget to advertise measures to boost consumer demand, according to reports. The Resolution Foundation, a center-left economic think tank, has offered to give everyone a voucher to spend in the hardest hit industries to target aid to struggling businesses in ways such as cash transfers or VAT cuts could not do.HM Treasury did not immediately respond to a request for comment.--Changed by Neil Cohen. For a reprint of this article, please contact reprints@law360.com. picture credit

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Boris Johnson recommends not raise taxes despite pandemic

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Boris Johnson recommends not raise taxes despite pandemic

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