Britain’s Treasury officials pushing for tax hikes – UK Press
|The officials at the UK Treasury Department are rooting for tax hikes to boost the public finances hit by the coronavirus pandemic, per The Sunday Times and The Telegraph.
Key takeaways (via Reuters)
“The tax hikes will enable the exchequer to raise at least 20 billion pounds ($26.70 billion) a year, and some could be introduced in the November budget.
Outlining plans for a 30-billion-pound “tax raid” on the wealthy, businesses, pensions and foreign aid.
Finance Minister Rishi Sunak is considering a proposal to boost corporation tax to 24% from 19%, a move that would raise 12 billion pounds next year, rising to 17 billion in 2023-24.”
FX implications
GBP/USD settled the week near eight-month highs of 1.3357, mainly driven by the dovish Fed Chair Powell’s speech induced massive US dollar weakness.
In the week ahead, the cable could see some profit-taking amid persistent concerns over the coronavirus situation, especially with the reopening of schools. Meanwhile, worsening UK-EU relations could outweigh the above report. Bank of England (BOE) Governor Andrew Bailey’s speech could also garner some attention.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.