Jeremy Hunt is considering raising capital gains tax and slashing the dividend allowance as he seeks to fill a £50bn chasm in the nation’s finances, reports suggest.
In the wake of the disastrous mini-Budget which ultimately saw Liz Truss become Britain’s shortest-serving prime minister, the chancellor again warned on Thursday that there are “difficult decisions” ahead as the government seeks to “restore stability”.
Speaking after the Bank of England’s largest interest rate hike since the 1980s, Mr Hunt said that families and businesses are at “the top of our mind” as he and Mr Sunak look to plug the UK’s “massive fiscal black hole” with spending cuts and tax rises.
A source close to the chancellor confirmed the tax hikes were under consideration but said no decisions had yet been taken – stressing “we are two weeks away” from the highly-anticipated autumn budget.
Reductions in capital gains tax reliefs and allowances are the most likely to be given the green light, but Treasury officials have also put an increase to the headline rate on the table due to the scale of the deficit, the Daily Telegraph reported.
