“ The document, dated May 5 and marked "Official – market sensitive", reveals that the "base case scenario" now forecasts that Britain will have a £337 billion budget deficit this year, compared to the forecast £55 billion in March's Budget.
It says tax rises and spending cuts which would raise between £25 billion and £30 billion – equivalent to a 5p increase in the basic rate of income tax – would be needed to fund the increased debt, and presents Mr Sunak with a menu of proposed measures to make up the shortfall.”
“ The document advises Mr Sunak that it is now likely to become necessary to break at least one of the Conservatives' key manifesto pledges not to increase taxes or scrap the triple lock on state pension rises.
It states: "To fill a gap this size [in the public finances] through tax revenue risers would be very challenging without breaking the tax lock. To raise fiscally significant amounts, we would either have to increase rates/thresholds in one of the broad-based taxes (IT, NICS, VAT, CT) or reform one of the biggest tax reliefs (eg pensions tax)."
Exclusive: Treasury blueprint to raise taxes and freeze wages to pay for GBP300bn coronavirus bill
It says tax rises and spending cuts which would raise between £25 billion and £30 billion – equivalent to a 5p increase in the basic rate of income tax – would be needed to fund the increased debt, and presents Mr Sunak with a menu of proposed measures to make up the shortfall.”
“ The document advises Mr Sunak that it is now likely to become necessary to break at least one of the Conservatives' key manifesto pledges not to increase taxes or scrap the triple lock on state pension rises.
It states: "To fill a gap this size [in the public finances] through tax revenue risers would be very challenging without breaking the tax lock. To raise fiscally significant amounts, we would either have to increase rates/thresholds in one of the broad-based taxes (IT, NICS, VAT, CT) or reform one of the biggest tax reliefs (eg pensions tax)."
Exclusive: Treasury blueprint to raise taxes and freeze wages to pay for GBP300bn coronavirus bill
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