At a hearing of the select Treasury committee, Rishi Sunak declined to say whether he planned to raise taxes or cut spending to finance the hundreds of billions of pounds of borrowing that the UK is currently doing.
But he acknowledged that he would address the issue in his budget later this fall.
The comments come in a context of growing speculation, the chancellor will have to find new sources of income in the coming years, speculation exacerbated by a new examination commissioned by the Office of tax simplification on the capital gains tax (CGT).
Chancellor dismissed review as sign of upcoming CGT hikes but admitted public finance were on an unsustainable path like COVID-19[feminine[feminine the pandemic is wreaking havoc.
He said, “There are difficult choices to make. It’s clear.
“We have experienced this situation once in a lifetime and it has had a huge impact on the economy and public finances.
“It means there are tough choices ahead. ”
Asked whether he could keep the Conservative pledge not to raise the main income tax, national insurance or VAT rates, Mr. Sunak said: “Our ambition is to respect all the priorities that we have defined, but I cannot comment in one way or another on fiscal policy. ”
During a broad but largely technical hearing, the Chancellor also ruled out any late changes to the leave scheme to extend it to those who are currently excluded, including some small business owners.
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He also rejected calls by Labor MPs to introduce new support for certain sectors of the economy.
The hearing followed last week summer economic statement, in which the Chancellor temporarily reduced VAT for the hotel sector and introduced stamp duty for most home buyers.
VAT reduction Entered into force Wednesday.