Experts predict that taxes will increase to their greatest level since 1950 as a result of the new British Chancellor Jeremy Hunt abandoning planned spending cuts in one of the biggest fiscal U-turns in the country's history.
The Government "promised to lower taxes but is now placing taxes on course to climb as a proportion of GDP to about 36pc by the end of the parliament—up from 33pc at the start," according to the Resolution Foundation.
"This would result in the UK's tax revenue reaching its greatest level sustained since 1950–1951."
Just days after succeeding Kwasi Kwarteng as Chancellor, Mr. Hunt declared that he would be canceling "virtually all the tax reforms" outlined in the mini-Budget. He said that he would reduce the average annual household energy bill subsidy from £2,500 to £2,000 starting in April of next year, meaning that not everyone will keep their prices frozen.
"This is now very definitely a tax-raising parliament, with the tax take certain to hit highs not sustained since 1950," said Torsten Bell, chief executive of the Resolution Foundation.
"With the energy price ceiling now on course to surpass £4,000 next April — nearly double its effective level today — the cost of insulating the public finances from wholesale gas markets next year is increased pressure on homeowners."
"The new Chancellor is making some difficult decisions that, if successful, will lessen the size of the public spending cuts that will be revealed on October 31. This is especially true if these decisions cause markets to lower the interest rates they charge the government for borrowing.
But many of Jeremy Hunt's difficult decisions are still ahead because there are still tens of billions of dollars in budget reductions and a new energy support plan to be developed.