Instead, Downing Street is currently focused on potential “non-fiscal” measures that could reduce the cost of living, such as removing red tape that drives up the cost of childcare.
According to the Commons library research, commissioned by the Liberal Democrats, a household with median earners would have a combined original income of £717,640 over the next decade, on which they would pay about £5,550 in tax directly from policies introduced since 2021 – namely the National Insurance increase and freezing of the income tax personal allowance.
The calculations assume that Mr Sunak will cut the basic rate of income tax from 20p to 19p in 2024, as he promised to do during the March budget.
‘No light at the end of the tunnel’
Ed Davey, the Lib Dem leader, said the figures showed that “there is no light at the end of the tunnel under this Conservative government, just years of painful tax rises”.
Mr Davey added: “Now is not the time to be hiking people’s taxes, just as energy bills and inflation go through the roof. People are facing a cost-of-living emergency, and they need an emergency tax cut now.”