Reportedly, Rishi Sunak is mulling over a rather controversial decision. He believes it is inevitable that all citizens will have to pay more taxes to restore stability to the public finances. Curiously enough, former Prime Minister Liz Truss was going to partially reduce taxes. However, her tax policy was severely criticized by policymakers. As a result, she had to resign. Sunak decided to choose another strategy and not repeat her mistakes.
Not so long ago, Sunak served as Chancellor of the Exchequer and coped well with his work. Notably, he led the department during a rather difficult period. Now, he is the prime minister which means higher responsibility. It appears he intends to act decisively and revive the economy even if his policy adversely affects his image. For instance, he proposed tax increases and public spending cuts worth up to £50 billion ($57.3 billion) a year to fill a hole in public finances. Such a decision is unlikely to make him more popular among the Brits but it will definitely help the country's economy get back on track.
Analysts at the Financial Times believe that this is rather a tough decision. Everyone will have to pay more taxes to ensure an improvement in the economic situation. After borrowing hundreds of billions of pounds during the pandemic and adopting aid packages for households struggling to pay soaring energy bills, the UK will hardly be able to fill the budget hole only by cutting costs.
Interestingly, the proposed measures will affect Rishi Sunak as well as he is richer than King Charles III. Rishi Sunak and his wife Akshata Murthy are among the UK's wealthiest people with a joint fortune of £730 million ($844 million). It is also more than twice as much as the wealth of King Charles III, estimated at roughly £370 million.
