The vote to leave or remain in the EU is now just one week away and the remain camp is now at panic stations with the latest news coming from Chancellor George Osborne.
Reported today it is claimed that he is, alongside former Labour Chancellor Alistair Darling, to release a budget scorecard which details a number of direct budget implications of leaving the EU. Essentially the cuts and tax rises he will list veer miles from the manifesto pledges by the Conservatives and this is doubly shocking as we are not that far removed from the party's re-election.
Here are the main tax and spending changes the Chancellor has threatened:
- 2 pence rise in basic rate income tax (from 20% to 22%).
- 3 pence rise in higher rate income tax (from 40% to 43%).
- 5 pence rise in inheritance tax rate (from 40% to 45%).
- Increase petrol duties by 5%.
- Increase alcohol duties by 5%.
- Cuts totalling £15bn. This includes 2% cuts to health (£2.5bn), defence (£1.2bn) and education (£1.15bn) totalling nearly £5bn.
- 5% budget cuts from policing, transport and local councils.
To better help translate this to your own personal circumstances we have produced a quick calculator to compare your take home pay today with the proposed measures below:
The figures look depressing and this hasn't gone unnoticed as Osborne is facing a challenge by 57 MPs in his own camp over this. If the Chancellor pushes the matter a vote in Parliament would be blocked if the 57 vote against it. However, experts state regardless of how they are implemented budget changes would be needed due to the nature of EU membership as we blogged about last month.
Let us know your thoughts in the comments section below!