UK Treasury Department officials are backing tax hikes to boost public finances affected by the coronavirus pandemic, according to The Sunday Times and The Telegraph.
Key takeaways (via Reuters)
The tax hikes will allow the Treasury to raise at least £ 20 billion ($ 26.7 billion) a year, and some could be introduced in the November budget.
Outlining plans for a £ 30 billion “tax raid” on the rich, businesses, pensions and foreign aid.
Finance Minister Rishi Sunak is considering a proposal to raise corporate taxes from 19% to 24%, a move that would raise £ 12bn next year, rising to £ 17bn in 2023- 24. “
GBP / USD settled for the week near eight-month highs of 1.3357, mainly due to accommodating speech from Fed Chairman Powell which caused massive weakness in the US dollar.
In the coming week, cable could see profit taking amid lingering concerns over the coronavirus situation, especially with schools reopening. Meanwhile, the deterioration of UK-EU relations could trump the above report. The speech by the Governor of the Bank of England (BOE), Andrew Bailey, could also attract attention.