Rishi Sunak will unveil a carbon tax next year as he attempts to repair the battered public finances, leading economists have told The Times. The chancellor will announce tax rises next year to help bring the national debt under control after it ballooned above 100 per cent of GDP for the first time since the early 1960s, according to the vast majority of 73 experts contributing to an annual poll. Tax increases, possibly towards the end of next year, are expected as growth recovers strongly, mass unemployment fails to materialise, inflation hovers at about 2 per cent, the Bank of England continues printing money and negative interest rates are avoided, the survey suggests. Of 73 respondents to a question on taxes, 57 predicted that an increase would be announced if not implemented next year, with green levies considered most likely. The next most likely options were wealth taxes and a solidarity pandemic levy, in the form of a temporary tax surcharge or excess profit tax.
Times 29th Dec 2020 read more »