Britain raises taxes and cuts spending
UK Treasury Secretary Jeremy Hunt announced a package of tax hikes and tighter public spending in the new budget, measures he said were necessary after the blow to the country’s financial reputation at the hands of former Prime Minister Liz Terrace’s policies.
Hunt announced a £55bn plan, about half of which will consist of tax hikes, to fix public finances and said the economy is already in recession and will contract next year as they expect one Inflation, averaging 9.1% this year, is struggling % in 2023, according to Reuters.
Britain’s household watchdog said higher prices would further erode staff wages and cut living standards by 7 per cent by April 2024, the year when national elections are expected, and wipe out growth achieved over the eight years to 2022.
The Accounting Office said the tax burden would reach 37.1% of gross domestic product at the end of the five-year forecast period, the highest sustained level since World War II, up from 33.1% in the 2019-20 tax year.
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