BRITS could be hit by mammoth tax hikes to raise £20billion a year to plug debt caused by the coronavirus pandemic.
Treasury officials are said to be planning a quintuple of increases that would be the largest tax rises in a generation.
But the move, which could be introduced in the Budget, is being blocked by some senior figures at No10, HOARday Telegraph reports.
Under the proposals, capital gains tax could be merged with income tax, while pension tax relief could be slashed.
Fuel and other duties could be raised and online sales tax could also be introduced to help plug any gaping holes in the economy.
It is hoped the plans could raise the £20billion needed to help pay for debt caused by the coronavirus chaos.
But aides at No10 fear the hikes could derail the economic recovery – with some questioning whether the money could be taken from cuts to Whitehall departments’ current spending budgets.
Senior economists and business leaders have also warned raising taxes in the current recession would be “whistling in the wind”.
They have called on Chancellor Rishi Sunak not to raise taxes during the worst recession for 300 years but focus on aiding growth.
It is also feared the proposals would hit the south of England and London more than the rest of the UK.
A Treasury spokesman told the paper: “We do not comment on speculation about tax changes ahead of fiscal events.”
