The UK has launched its fiscal plan to emerge from recession

Seeking to reassure markets, the British government on Thursday presented a budget that includes more taxes and cuts in public spending, worth 55 billion pounds (65 billion US dollars), despite rising costs of living and a certain recession.

(Requirements you must meet to enter the UK).

“We are honest about the challenges we face and fair in our solutions.”Finance Minister Jeremy Hunt told Parliament while imposing the return of austerity on this country of 67 million people, the sixth largest economy on the planet, mired in crisis.

He stressed that this is part of a global trend led by the pandemic and the Russian invasion of Ukraine.Which harmed growth and led to higher energy prices.

But he avoided mentioning Brexit – effective from the beginning of 2020 – which, according to officials at the Bank of England, has hurt British foreign trade and made it difficult to recruit a much-needed workforce.

(Possible UK tax increase with new Prime Minister).

Citing data from the Office for Budget Responsibility (OBR), the minister confirmed that the UK has already entered a recession and that its GDP will fall by 1.4% in 2023.

According to the Bank of England, This recession may continue until mid-2024 and be the longest in British history.

To clean up the public finances, Hunt announced measures that over the next five years would provide £30 billion in spending cuts and £25 billion in additional taxes.

Among them, as of January 1, is to increase the tax on exceptional profits of oil companies from 25% to 35%, to be extended for a period of three years until 2028.
As Hunt announced “A new temporary tax of 45% on electricity producers.” This would allow us to continue helping the most disadvantaged people pay their energy bills beyond the initial April 2023 deadline.

See also  The UK will introduce a law for supermarkets to remove products related to deforestation

(The economic challenges facing Sunak as UK Prime Minister).

The London Stock Exchange fell by 0.06% this Thursday at the close of the session, affected by the disclosure of the British government’s financial plan. At the close, the British pound fell by 0.69% against the dollar.

France Press agency

Leave a Reply

Your email address will not be published. Required fields are marked *