The Tory MP for Wokingham warned the UK economy was not rebounding quickly enough due to the incoming tax rises and the threat of an interest rate
The Tory MP for Wokingham warned the UK economy was not rebounding quickly enough due to the incoming tax rises and the threat of an interest rate hike by the Bank of England. In a post on Twitter, Mr Redwood wrote: “Latest figures show economy is being slowed by higher taxes and threats of interest rate rises.
“Government should cancel the National Insurance rise. More growth is needed to get the deficit down.
“We are still not back to pre-Covid level.”
National Insurance contributions will increase by 1.25 percent from April 2022 to pay for social care reforms.
The hike means an individual on an annual salary of £20,000 will pay an extra £130 per year to the Treasury.
Corporation Tax for businesses will also rise from 19 percent to 25 percent next year.
Income Tax thresholds have already been frozen until 2026, meaning working people will pay tax on any earnings from a salary above £12,570.
More than one million people are estimated to be pushed into the tax bracket due to soaring inflation and wages.
The call for a tax reduction comes after latest Office for National Statistics (ONS) data found gross domestic product (GDP) rose by 0.4 percent between July and August.
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Experts predict the Bank of England will slash its growth forecast to 1.5 percent in November and has fuelled reports interest rates could rise from 0.1 percent to 0.25 percent.
The economic recovery during the second financial quarter hit by the so-called “pingdemic”, which saw hundreds of thousands of people forced to isolate at home after being alerted by the NHS app.
Firms have also been affected by stained global supply chains and a shortage of HGV drivers, which has reduced the availability of many goods and services.
The Chancellor is currently in the US after chairing a meeting of finance ministers on Wednesday.
The Treasury said Mr Sunak told the meeting of the “importance of global co-operation to ensure that supply chains are more resilient as the world emerges from the pandemic”.
Speaking after the meeting in Washington, Mr Sunak said: “Supply chain issues are being felt globally – and finance leaders from around the globe must collaborate to address our shared challenges.
“Today we have collectively agreed to work closely over the coming months – and together we will build a strong and resilient recovery.”