measures UK Finance Minister Jeremy Hunt unveiled measures on Thursday to restore UK finances
Prime Minister Rishi Sunak, and Chancellor of the Exchequer Jeremy Hunt in the House of Commons, London, Thursday November 17, 2022. — Jessica Taylor/AP/SIPA
Demanding budgetary choices. UK Finance Minister Jeremy Hunt unveiled on Thursday its measures to restore the finances of the United Kingdom, a cure of rigor combining cuts in public spending and tax increases. Here are the main points.
55 billion pounds
Jeremy Hunt confirmed Thursday “a £55 billion budget consolidation, of which £25 billion will come from tax hikes and £30 billion from spending cuts, except in Health and Education whose budgets will increase.
Tax on energy giants
The British government is putting contribution the energy giants, whose profits have been boosted by the energy surge and the war in Ukraine. The managing director of the oil giant Shell, Ben van Beurden, had himself called beginning of October to tax energy companies more. An exceptional tax, introduced in May, will increase by 25% at 35%, and will be extended for three years, until 2028. The possibility to reduce this tax in exchange for investments, much criticized by environmental NGOs, remains in place, but it is now much more of an incentive for low-carbon projects.
The UK Finance Minister also announced; “a new temporary tax of 45% on producers of electricity, including renewables, who have also benefited from this. of the global rise in energy prices. The government is also extending the freezes on certain tax thresholds, particularly on income, which in times of inflation will automatically increase tax revenues. The highest tax bracket is lowered and will thus affect more of the wealthiest taxpayers. The Minister of Finance is also lowering the tax thresholds for dividends and capital gains, and will introduce a road tax on electric vehicles, which will therefore be taxed at a higher rate. like combustion engines, from 2025.
Slowed down expenses
With the exception of Health and Education, which are seeing their budgets increase, the other ministries will have to stay within the nails of the planned expenditures until the end of the year. fiscal year 2024-2025. They will then see the increase in their envelopes slow down until 2028.
Chancellor of the Exchequer Jeremy Hunt had already announced that the assistance to households to pay the energy bill would be reduced. From April, aid will go beyond of 3,000 pounds per year, instead of 2,500 pounds, which represents savings of 14 billion pounds.
Help for the most vulnerable
The Chancellor announced Thursday £26bn of purchasing power support. Pensioners will see the pensions paid by the State increase in line with inflation, as will the recipients of certain allowances. The minimum wage will be raised. to from April. The budget of the NHS, the national health service, underfunded; for years, will increase by £3.3 billion next year and the year after, and schools will receive an extra £2.3 billion a year. Businesses, which have also been heavily impacted by the upheavals in the British economy, will receive a quantified boost. to 13.6 billion pounds to limit the rise in their local taxes.
Jeremy Hunt also confirmed; certain infrastructure expenditure, in particular the government’s intention to build the new Sizewell C nuclear power plant, led by the French electrician EDF. For this project, “the contracts for the first investments will be signed with the relevant players, including EDF, in the coming weeks”.