DOWNING Street is reportedly considering reducing VAT to help struggling families fight the cost of living crisis.
Proposals to reduce VAT from 20% of headlines have the potential to reduce taxes for millions of British.
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This move will help ease the pressures facing households as the cost of living crisis continues.
The Prime Minister’s chief of staff has proposed a temporary reduction in rates, the Times reports.
However, there are concerns that the Treasury has warned that this move could boost inflation by overstimulating the economy.
Inflation, which reached 9.1% last month, is the highest in 40 years.
It has contributed to the threat of strikes and industrial activities by workers in transportation services, schools, postal services and hospitals as a whole.
To make matters worse, official figures show that the number of people expected to be subject to higher tax rates will reach 6.1 million this year.
It comes after Boris Johnson has hinted at reducing VAT on energy charges to save hundreds of pounds on British people.
The prime minister said he would not “exclude” tax cuts as his family continued to feel pressured from the cost of living crisis.
Johnson said in a BBC Radio 4 Today program on June 18 that the government is doing “a huge amount” to help people “with the financial strength we have.”
Asked why he hasn’t reduced VAT on energy prices yet, he said, “We haven’t ruled out doing it.”
He said the government “already reduced a record amount of fuel tax,” admitting that it was “swallowed” and “may have more to do.” Added.
He was asked if the tax cuts would be further reduced and said, “I want to make sure that these tax cuts are properly passed on to consumers.”
On June 25, Boris hung tax cuts on frustrated voters and businesses after two by-elections.
The prime minister has promised that only the Tories will reduce taxes to “turbocharge” Britain and manage the cost of living crisis.
“I don’t think these are great results,” he told reporters, who fought to return to his forefoot after losing two by-elections and the shocking resignation of the party leader.
But he vowed: “We are a government that believes in tax cuts and wants to have the best possible tax framework so that we can wisely and responsibly turbocharge as a place to visit and invest in the UK’s charm. For business and family. “
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