Austerity on the Horizon for Brits

December 2, 2012 Taxation in UK

George Osborne in BeijingLONDON – UK taxpayers should get ready for another round of tax hikes, welfare cuts, and a clampdown on aggressive tax avoidance.

In a television interview on December 2nd the Chancellor of the Exchequer of the UK George Osborne indicated that the government’s ongoing goal to balance the national budget will take one year longer than expected, and the country will be forced to endure another year of its ongoing austerity measures.

George Osborne indicated that as part of the new austerity measures the government will increase the tax obligations for almost all taxpayers in the country, but particular attention will be paid to ensuring that wealthy taxpayers “…bear their fair share”.

According to the Chancellor the government will also “tackle welfare bills” by not increasing welfare payments at the same rate as inflation and the government will also remove some tax concessions currently available to low income earners.

During his interview the Chancellor also announced that the government would soon give more funds to the country’s tax authorities in order to provide the resources necessary to launch new programs and investigations into the issue of large multinational companies avoiding excessive amounts of taxes in the UK.

However, while George Osborne did say that efforts will be made to ensure that wealthy taxpayers and large companies will be forced to pay their fair share, the government will also take steps to make sure that Britain remains to be a attractive destination for international businesses.

Photo by HM Treasury