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HomeUnited KingdomUK: a new austerity plan - 25/11/2022 at 09:06

UK: a new austerity plan – 25/11/2022 at 09:06


Rishi Sunak and Jeremy Hunt sought reassurance to erase the chaos caused by Liz Truss and Kwasi Kwarteng. (© AFP)

Rishi Sunak’s government has adopted measures combining tax increases and spending cuts.

The Chancellor of the Exchequer, Jeremy Hunt, had warned Britons that “very difficult decisions” had to be made. It’s done now.

The “autumn statement” he presented to parliament on November 17 is a U-turn on Liz Truss’s short-lived government, taking the opposite view of the onerous measures that had panicked markets by risking jeopardizing the kingdom’s public finances (Le Revenue No. 1706). The new budget has three priorities: “stability, growth and public services”.

With stability most pressing, fiscal tightening of £55 billion is expected in 2027-2028, of which £25 billion will come from tax increases and £30 billion from spending cuts.

In the first part, the energy groups that have reaped colossal profits since the war in Ukraine will be summoned, but also households, with an increase in the tax burden for the richest and the introduction of a tax on electric cars. With regard to the austerity measures, all the ministries are concerned, with the exception of Health and Education, which see their budget increase.

Save the most modest

With this tight budget, the UK tax burden is expected to rise to 37.1% of GDP in 2028 (compared to

Read more at LeRevenu.com

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