British Economy Minister Rishi Sunak announced that a series of tax cuts will be applied to strengthen the country’s economy after the Covid-19 pandemic.
British Economy Minister Rishi Sunak announced in the House of Commons his plans to reinvigorate the UK economy after the coronavirus pandemic.
He warned that the coming months would be “challenging” due to the ongoing Covid-19 pandemic and rising inflation while increasing a range of tax breaks and benefits to help the UK people with living costs.
He promised to build a “stronger economy for the British people” after the coronavirus crisis.
Announcing a series of tax changes and aid, Economy Minister Sunak announced that the Universal Credit interest rate will be reduced from 63 percent to 55 percent and that low-income families will be given an extra thousand pounds a year. Sunak also announced a reduction in alcohol taxes and a lower tax for domestic flights between England, Scotland, Wales, and Northern Ireland.
Sunak stated that while canceling the planned increase in fuel tax due to the record high gasoline prices in the UK, a 50 percent reduction in taxes will be provided for businesses in the retail, accommodation, and entertainment sectors during the new year. Stating that until 2024, an increase of 150 billion pounds will be achieved in order to increase the expenditures of each department in the parliament, Sunak stated that the funds per student in schools in England will also be increased.
He said £500m would be provided to reduce the build-up in the courts and an extra £2.2bn for courts, prisons and probation services.
Ahead of the budget announcement, the altar announced that the country’s minimum wage had been raised from £8.91 to £9.50 an hour. He said he expected inflation rates to rise at a time of heightened global economic uncertainty, adding that the Office for Budget Responsibility (OBR) expects the inflation rate to average 4 percent next year. He said the Office for Budget Responsibility (OBR) expected the UK’s economic recovery after the Covid-19 pandemic to be “faster” than previously thought.