RISHI Sunak is drawing up plans to cut income tax by 2p in the pound before the next general election. The chancellor is considering a raft of tax-cutting measures, but the income tax cut is currently the preferred option, the Times reports. If basic rate tax charges drop to 18%, someone earning the average salary would save £356 a year in income tax. The Times says that in total ten options were mooted and more detailed analysis is being carried out on three - income tax, VAT and inheritance tax. Each 1% cut in income tax would cost the Treasury around £6bn, and the chancellor is said to have set aside £14.7 billion to fund tax cuts altogether.

Source: The Times December 25, 2021 08:24 UTC