--- title: "Families to Incur an Additional £4,300 in Taxes Despite Hunt’s Financial Concessions" publisher: "Share Talk" author: "sharetalk" published: "2023-11-23T10:41:46+00:00" modified: "2023-11-23T10:41:46+00:00" date: 2023-11-23 canonical: "https://www.share-talk.com/families-to-incur-an-additional-4300-in-taxes-despite-hunts-financial-concessions/" category: "B2B" categories: ["B2B", "Blogs", "Business & Support Services", "Technology", "Technology, Media & Telecoms"] tags: ["BRITISH", "businesses", "Conservative party", "Entrepreneurs", "GDP", "House of Commons", "Housing Allowance", "Jeremy Hunt", "London", "MP", "National Insurance", "Tax", "tax burden", "tax reduction", "UK"] image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/The-Surprising-Truth-Behind-Suzi-Quatro-of-Happy-Days-YouTube-Google-Ch.-2023-04-17-at-6.34.29-PM.jpeg?fit=1722%2C853&quality=89&ssl=1" format: "news" language: "en-GB" --- # Families to Incur an Additional £4,300 in Taxes Despite Hunt’s Financial Concessions **Published:** November 23, 2023 **Author:** sharetalk **Categories:** B2B, Blogs, Business & Support Services, Technology, Technology, Media & Telecoms **Tags:** BRITISH, businesses, Conservative party, Entrepreneurs, GDP, House of Commons, Housing Allowance, Jeremy Hunt, London, MP, National Insurance, Tax, tax burden, tax reduction, UK **Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/The-Surprising-Truth-Behind-Suzi-Quatro-of-Happy-Days-YouTube-Google-Ch.-2023-04-17-at-6.34.29-PM.jpeg?fit=1722%2C853&quality=89&ssl=1) --- The Resolution Foundation has indicated that families may have to bear an additional tax burden of £4,300, despite Jeremy Hunt’s efforts to reduce National Insurance and offer other budget-related concessions. According to the think tank’s analysis of the [Autumn Statement,](https://www.share-talk.com/the-autumn-statement-features-the-largest-tax-reduction-for-businesses-in-the-past-50-years/) taxes are projected to increase by around £4,300 per household by the end of the decade when compared to 2019 levels. This tax burden is expected to rise consistently over the next five years, reaching a new record of nearly 38% of GDP by 2029. This is significantly higher than the pre-pandemic tax levels of 33.1%. These tax hikes are occurring despite the Chancellor’s commitment to reducing National Insurance from 12% to 10%, resulting in an annual savings of £450 for the average salary earner. The primary driver behind the tax increases is fiscal drag, where inflation pushes individuals into higher tax brackets as their incomes rise. The Office for Budget Responsibility (OBR) predicts that by 2028, an additional seven million workers will fall into higher income tax brackets, with 3.4 million paying either the higher or top rate of income tax by the end of the decade. Torsten Bell, CEO of the Resolution Foundation, observed that the Chancellor’s promise of tax cuts contrasts with the reality of rising taxes. He attributed this situation to the challenges of governing a Britain with health issues, an ageing population, slower economic growth, and higher interest rates. Bell stated, “That might be difficult for policymakers, but it’s a disaster for households whose wages are stuck in a totally unprecedented 20-year stagnation. This parliament is set to achieve a truly grim new record: the first in which household incomes will be lower at its end than its beginning.” While nominal wages are growing at a faster rate than previously anticipated, this growth is mainly due to increased inflation. Real wage growth remains modest, and real average earnings are not expected to return to their 2008 peak until 2028, as per the Resolution Foundation’s analysis. This parliament is also likely to be the first in which real household disposable incomes decline. On average, households are expected to be £1,900 poorer at the end of this parliament compared to its beginning. Mr. Bell noted, “Jeremy Hunt yesterday got his pre-election giveaways in early, with an Autumn Statement offering tax cuts today, at the price of implausible spending cuts tomorrow.” The Resolution Foundation’s analysis indicates that approximately 40% of the benefits from the tax and benefit measures announced in the Autumn Statement, including National Insurance cuts, enhancements to Local Housing Allowance, and adjustments to the Work Capability Assessment, will primarily benefit the wealthiest fifth of the population. On average, the top 20% of earners will gain £1,000, which is five times more than what the bottom fifth will gain. However, it’s important to note that despite these gains, the highest earners will still experience the most significant losses due to decisions made during this parliament. When all tax and benefit measures introduced since 2019 are considered, the richest fifth of households are expected to lose an average of £1,100, while the poorest 20% will gain an average of £700. Richard Hughes, the chairman of the OBR, expressed concerns about the UK’s economic outlook, noting that economic growth is likely to remain sluggish in the short term. He described the situation as an “unpleasant” combination of high-interest rates and low growth, which sets the UK’s economic prospects apart from other wealthy economies. Hughes highlighted the discrepancy, saying, “We have a worrying configuration of American-style interest rates, but European-style growth. And so the dynamics are looking particularly unpleasant for us as a G7 member because we’ve got relatively high-interest rates, but we haven’t got the American GDP growth to go with it.” --- **Original URL:** https://www.share-talk.com/families-to-incur-an-additional-4300-in-taxes-despite-hunts-financial-concessions/ *Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*