STRUGGLING Brits will have to fork out an extra £3,000 in tax by the mid 2020s under Boris Johnson – while suffering the worst wage growth since the Depression.
Economists have warned that the squeezed middle have been clobbered hardest by the spending splurge Budget.
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But in a silver lining, they said Chancellor Rishi Sunak could manage a massive £7billion tax giveaway before the next election.
The Chancellor said he resents having to hike taxes and wants to see them falling by the next election due for 2024 as a “priority”.
Experts said a toxic triple whammy of low wages, rocketing inflation and higher tax bills will leave millions feeling poorer next year.
The hugely respected Institute of Fiscal Studies said Rishi’s Budget was a “once in a decade event” which has torn up traditional Tory low tax orthodoxy and left the state at its biggest in 50 years.
Paul Johnson, director of the IFS, said: “The worry for the government is that, for all the Chancellor’s upbeat delivery, the voters may bit get much feel good factor.”
He said “high inflation, rising taxes and poor growth” will see “living standards barely rising and, for many, falling over the next year.”
Mr Sunak went on a £150billion spending spree in the Budget – pouring cash into every single government department and leaving the state at its biggest since the 1970s.
But while he handed poor workers a pay rise with boosts to the minimum wage and Universal Credit, the Treasury watchdog warned that inflation looks likely to hit 5 per cent next year.
This could trigger a big rise in interest rates, the Office for Budget Responsibility warned.
And in a sober warning to hard-pressed families, the IFS gloomily warned: “We are now experiencing enough inflation that real pain will be felt.”
The Resolution Foundation warned that by 2027 tax will hit eye-watering levels but seen since 1950.
In total, under Bojo tax bills will have rocketed by £3,000 for the average household by then, they said.
While pay is expected to lag behind inflation next year.
Britain is in the grip of the weakest decade for pay since the 1930s, the Foundation warned.
Rishi Sunak says it’ll be his priority to cut taxes in the future
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