UK only major economy hiking taxes on working people during cost-of-living crunch

The UK is the only major world economy to raise taxes on working people in response to the cost-of-living crisis, new research has revealed.

Labour has called on Rishi Sunak to ditch a planned 1.25 per cent hike to National Insurance contributions, set to be introduced next month.

And fresh analysis by the Institute for Fiscal Studies (IFS) revealed that soaring inflation means the chancellor will net a further £12.5 billion from a “stealth tax” hidden in last year’s Budget.

Sunak announced a four-year freeze in income tax thresholds last March, when inflation levels were running around one per cent – raising £8 billion.