British finance minister Rishi Sunak in his speech recently announced tax cuts for workers and duties on fuel on Wednesday. The move is an attempt to reduce the onerous cost of living pressures due to rapidly rising inflation and slowing economic growth.
In the mid -year budget update, Sunak also increased its insurance and social security contributions to $ 3,958.50 this year.
He said the personal tax cuts amounted to 6 billion pounds covering 30 million people across the United Kingdom. Sunak added that the tax cut equates to more than 330 pounds a year per employee, making it the single largest personal tax cut in a decade.
Waima so remains with its plan to increase the nation’s insurance contributions starting next month, part of its plan to fund more spending on health and social care after the COVID-19 pandemic.
In political developments, Sunak and Prime Minister Boris Johnson are facing pressure, including from lawmakers in their Conservative Party as they need to find solutions to reduce the household burden of a string of rising cost of living.
Sunak announced a new forecast showing the British economy will grow slower this year than previously predicted. This is due to the uncertainty of the impact by the Russian invasion of Ukraine, and inflation.
Forecasts made by the Office for Budget Responsibility (OBR) show the economy is likely to grow by 3.8% in 2022, a sharp slowdown from the 6.0% forecast made in October.
Inflation, as measured by the consumer price index, is now seen at 7.4% in 2022, compared to the October forecast of 4.0%. OBR predicts that gross domestic product will grow by 1.8%, 2.1% and 1.8% in 2023, 2024 and 2025.
