Bloomberg Tax
July 18, 2022, 5:09 PM

Johnson’s Successor Has £60 Billion for UK Tax Cuts, CEBR Says

Philip Aldrick
Philip Aldrick
Bloomberg News

Britain’s next leader can afford £60 billion ($72 billion) of tax cuts as a combination of higher than expected inflation and frozen income tax thresholds hands the Treasury a windfall at the end of the parliament, according a leading economics consultancy.

The Centre for Economics and Business Research estimates that the nominal cash size of the economy will be 5.7% larger in 2024/25 than officially assumed because inflation is running hotter than forecasted.

That will generate £133 billion of extra revenues annually in the final year of the parliament, partially offset by £73 billion more public spending in areas such ...