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Isle of Wight Liberal Democrats

Hammond stealth tax on savers is "indefensible"

November 24, 2017 6:00 PM
Originally published by UK Liberal Democrats

Around ten million small savers will be hit by a stealth tax worth £500m buried in the small print of the Budget, it emerged today.

Previously small savers were only taxed on increases above inflation, but under the new plans the whole of the increase will be taxed.

This is an indefensible raid on small savers.

With inflation running at 3% a year, many people will see their savings shrink in real terms because of this unfair policy.

At a time when incomes are being squeezed and household debt is approaching pre-crisis levels, the last thing the Government should be doing is punishing those doing the right thing by saving for the future.

It is particularly hypocritical of the Chancellor to raise money targeting savers, while wasting £3 billion on Brexit to pay for lawyers and lorry parks that will probably never be used.