British Finance Minister Rishi Sunak holds a “budget box” outside 11 Downing Street in London on October 27, 2021 (AFP / DANIEL LEAL-OLIVAS)
British President Rishi Sunak on Wednesday unveiled the budget for the “post-Govt economy”, driven by stronger-than-expected growth forecast for 2021, particularly focusing on public services and promising to get the budget back on track.
Rishi Sunak is based on forecasts prepared by the public body OBR, which plans to return to its pre-epidemic level by early 2022 instead of mid-2022, thanks to the reopening of the economy and the success of anti-Govt vaccines. .
The Chancellor of the Exchequer confirmed that “this budget focuses on investment and a more innovative and competent economy”, specifically arguing that total government spending will increase by 3.8% per year by 2024-2025.
However, the country’s GDP growth is expected to slow to 6% by 2022. And according to the OBR, inflation will be “almost 5% next year, the highest rate in the country in three decades”.
The recovery is actually showing signs of slowing down, with labor shortages, congested supply chains and rising energy prices being fined, not to mention the high levels of Govt-19.
– Tax hike –
“I am not prepared to put too much pressure on families and small businesses as fuel prices have risen to levels not seen in eight years,” he said. Sunak said before announcing that the planned increase in fuel had been canceled.
Those in the London Underground, October 20, 2021 (AFP / Tolga Akmen)
The government has already released 500 million in funding to help disadvantaged families this winter.
But the National Energy Action Association has denounced the budget as “having little new support to help lower-income people deal with energy bills.”
To fund these measures, the government has already announced an increase in social security contributions, in defiance of the campaign promise, as well as raising taxes on companies from 19 to 25%.
However, the Chancellor promised to reduce the surcharge on banks to reduce corporate tax increases for the sector.
A broader modification of the alcohol lines has been reported to increase over strong alcohol but decrease over particularly sparkling wines.
Just days before the start of the COP26 climate conference in Glasgow, environmental issues have flown away, with Rishi Chunak relying mainly on the 26 26 billion capital investment announced last week as part of his carbon neutralization strategy.
And if the finance minister announces a tax increase on long-haul flights, they will be reduced to short-haul flights on the other hand, which is particularly condemned by the Railway Union Aslef: before COP26 “it only sends bad signals”.
– “Parallel Universe” –
Rachel Reeves, the chief labor finance officer, teased the president: “Bankers who take short flights while drinking champagne will appreciate this budget” but “families in distress will think that Rishi Sunak lives in a parallel universe”.
“Climate emergency should have been the focus of these budget guidelines (…) but Mr. Sunak spent too much time discussing taxes on cider,” Greenpeace erupted.
The NGO estimates that the President’s announcements are only 5% of the costs needed to achieve the country’s climate goals.
The Conservative official is eager to begin a recovery in British public funds, as the country has been facing a deficit of nearly 15% of GDP since World War II last year.
Greenpeace activists set up a “climate emergency” banner in London in May 2019 (AFP / Adrian DENNIS)
In particular, the Chancellor announced on Wednesday new tax rules aimed at “keeping this government on the path of accountability discipline” with the goal of reducing the budget surplus and the debt ratio within three years.
Rishi Sunak also announced his intention to “reduce taxes by the end of this Assembly”. But analysts at Pantheon Macroeconomics warn that the president’s margin of being generous before the 2024 election may be “limited by rising interest rates on debt.”
The Treasury has drafted several advance announcements in recent days, raising the minimum wage to 9. 9.50 an hour and ending a wage freeze in the civil service or ஆறு 6 billion (NHS) to help the National Health Service, under intense pressure, in response to delays in care caused by the epidemic.
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