How Rishi Sunak could save workers thousands in tax and solve the cost of living crisis

How Rishi Sunak could save workers thousands in tax and solve the cost of living crisis

Chancellor Rishi Sunak could save struggling families thousands of pounds by cutting taxes to stimulate the economy and dampen the effects of rising prices. The Government is looking at ways to cut the tax burden as families battle skyrocketing inflation, which has hit a 40-year high of 9pc . Mr Sunak is reportedly drawing up plans to increase heating bill discounts for lower income households and make tax cuts in the autumn. This could be funded by a one-off windfall tax on oil and gas companies, which ministers are considering and could raise cash to offset the cost of living crisis . Altogether, these policies could save households hundreds of pounds per year, although critics say windfall taxes are anti-business and will damage the overall economy. Telegraph Money looks at what options are on the table and what would they mean for your money. Fast-track the 1p income tax cut In his Spring Statement, Mr Sunak announced he would cut basic-rate income tax by 1p in the pound from 2024. As the cost of living crisis deepens, this tax could be fast-tracked. Sarah Coles, of Hargreaves Lansdown, a fund shop, said for a person earning £40,000 per year, this tax