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.