OVER a million social housing tenant will face rent increases of up to 7%, Chancellor Jeremy Hunt revealed today.
Compared to previous plans, which would have seen rents go up 1% above inflation, so around 11%, that’s around a £200 saving.
Last year, rents increased by 1.6%.
Many social housing tenants receive full housing benefits from the government, which means the increase in rents will be picked up taxpayers.
However, around 30% of social tenants pay full rents and will be hit by the increase in full because they’re not eligible for support.
That amounts to over 1,300,000 tenants who are facing the 7% hike.
Meanwhile, Mr Hunt extended a freeze on income tax thresholds until 2028.
The freeze was meant to come to an end in 2026, but extending this will drag millions more into paying a higher tax rate.
That is because inflation and rising wages will mean more workers hit the thresholds, even though they are no better off in real terms.
Mr Hunt also said the Stamp Duty cut will end in 2025 and added energy companies will be hit by an extra windfall tax as well.
In May, then-Chancellor Rishi Sunak announced a temporary 25% tax on companies’ profits made after May 26, 2022, running until 2025.
It is now set to be raised to 35% until March 2028.
From January 1, a new temporary 45% levy on electricity generators will also roll out.
Together, these two taxes raise £14billion next year, Mr Hunt said.
Plus, electric cars will have to pay road tax from 2025 to put new cars on par with old petrol ones.
Vehicle Excise Duty will have to be paid by electric cars and vans in the years to come, he said.
That will help rake in billions more for the Chancellor as more people making the swap to electric cars.
The Chancellor also announced the NHS budget will be increased in each of the next two years by an extra £3.3billion.