Unions attack Alice in Sunak-land’s spring statement that ‘lower taxes mean higher taxes’

Rishi Sunak labor marks ‘Alice in Sunak-land’ for spring statement in which ‘lower taxes mean higher taxes’ amid falling living standards and skyrocketing inflation

  • Shadow Chancellor Rachel Reeves: Sunak has made ‘increasingly unbelievable claims’
  • The tax burden is set to be the highest since Clement Attlee was Prime Minister
  • Reeves: ‘When did lower taxes mean higher taxes, is the news down?’

Labor compared Rishi Sunak to Alice in Wonderland today as they took aim at the Chancellor over his spring tax hike statement.

Despite Mr Sunak announcing his tax cut credentials in a speech to MPs today, the budget watchdog the Office for Budget Responsibility said the statement had only quashed a sixth of the tax increases imposed since February 2020.

Britain’s tax burden is set to be the highest since Clement Attlee was prime minister after World War II.

Shadow Chancellor Rachel Reeves accused him of coming up with ‘increasingly unbelievable claims’, telling MPs: ‘Perhaps the Chancellor was inspired by characters from Alice in Wonderland – or should I say Alice in Sunakland – because nothing here is quite as it seems either.

‘It’s the kind of place where a Chancellor celebrates by giving people £200 to help with their spiraling energy bills before explaining he needs it all back.

‘In Sunak-land, the chancellor says ‘I believe in lower taxes’ while raising Alice’s national insurance contributions. So Alice asks the Chancellor, “When did lower taxes mean higher taxes, did the lower really become the new higher?”

Shadow Chancellor Rachel Reeves accused him of coming up with ‘increasingly unbelievable claims’, telling MPs: ‘Perhaps the Chancellor was inspired by characters from Alice in Wonderland – or should I say Alice in Sunakland – because nothing here is quite as it seems either.

Britain's tax burden is set to be the highest since Clement Attlee was prime minister after World War II.

Britain’s tax burden is set to be the highest since Clement Attlee was prime minister after World War II.

“Alice knows that under the Tories taxes are at their highest level in decades due to the policies of this same chancellor. In fact, this chancellor is the only finance minister in the G7 to raise taxes on workers in this crucial year of recovery. More and more curious.

“As Alice steps out of the rabbit hole to leave Sunak-land, she remembers the White Rabbit’s words and concludes that maybe the Chancellor’s reality is just different from yours.”

Ms Reeves also called Mr Sunak ‘Ted Heath with an Instagram account’ and suggested he had failed to live up to the expectations of his Tory predecessor Nigel Lawson, whose portrait hangs in the Chancellor’s No 11 office .

Mr Sunak splashed the cash today as he returned half of the £12billion National Insurance hike, slashed fuel duty by 5p and promised the rate of tax base will fall by 2024 – but Britons are still facing the worst drop in living standards for nearly 70 years. .

In a bigger-than-expected move, he said the NIC payment threshold would rise to £12,570 from July, bringing it into line with the personal tax abatement. He said it was equivalent to a £6billion tax cut for 30 million workers – half the value of the new social care tax that Labour, many Tories and businesses had demanded it removes before it takes effect next month.

The decision to go ahead with freezing tax thresholds despite soaring inflation means that over the next three years 2.8 million people will be sucked into paying the tax and 2 million in the higher rate.

Last March, the watchdog predicted 1.3 million and one million more respectively due to politics. The highest rate numbers are expected to increase by an astonishing 42%.

Ms Reeves added: ‘The real reality is that this Chancellor’s failure to back a windfall tax and his stubborn desire to pursue a National Insurance tax hike are the wrong choices.

“In eight days people’s energy bills will rise by 54%, in two weeks today the Chancellor’s tax hike will start to hit workers and their employers.

“His National Insurance tax hike was a bad idea last September and he admitted it was even worse today.

“The Chancellor is making a historic mistake. Today was the day the employment tax hike was dropped, today was the day a windfall tax was introduced, today was the day when the Chancellor presented a plan to support British businesses.

“But, based on today’s statement and the misguided choices of this Chancellor, families and businesses will now suffer significant hardship as a result.

“The Chancellor has failed to understand the scale of the challenge we face and yet again he is making the wrong choices for our country.”

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