Search results

In recent years, the UK economy has faced significant challenges, including the impacts of the COVID-19 pandemic, rising energy prices due to the crisis in Ukraine, and globally high inflation. In response to these challenges, the government has set economic priorities, including reducing inflation, economic growth, and debt reduction. The recent Spring Budget indicates that the government is meeting these priorities, with inflation falling, economic growth stronger than expected, and positive projections for debt reduction. The decline in inflation has resulted in increases in real wages and an improvement in living standards. The economy, previously forecasted to enter a recession, has proven to be more resilient than expected, with GDP growing and the unemployment rate remaining low. The government is on track to meet its fiscal targets, with debt expected to decrease as a proportion of GDP. Additionally, further tax cuts for workers are planned, aiming to boost economic growth and maintain public finances on a sustainable path. Fiscal reforms include reductions in contributions to National Insurance, as well as changes to the tax benefit system for high-income children. Furthermore, the government is investing in essential public services to improve productivity in the public sector. The Spring Budget also includes measures to support small businesses, creative industries, and tackle smoking and vaping among young people. Overall, the announced policies aim to drive economic growth, reduce taxes for workers, and build a stronger economy for the future of the UK. . Over the past four years, the UK economy has faced significant challenges due to the COVID-19 pandemic and Putin's illegal invasion of Ukraine. Nevertheless, there are signs of improvement: Inflation has dropped to less than half its peak of 11.1% to 4.0%, with forecasts to return to the target of 2% in the next quarter. Economic growth has been stronger than expected, with forecasts for GDP growth in all projected years. Debt is expected to decrease as a proportion of GDP in the medium term. The Spring Budget builds on previous measures to promote long-term growth, including tax cuts for 29 million people, which should increase total hours worked in the economy. The government adopts a responsible fiscal approach, reducing taxes for workers while simultaneously reducing debt. Projections indicate that public debt will decrease as a proportion of GDP, meeting established fiscal rules. The UK government is maintaining a disciplined approach to public spending, following the plans laid out in the 2021 Spending Review. This includes targeted additional financial support for key public services while seeking efficiencies to strengthen public finances. Additionally, the government is reforming the tax system to make it simpler, fairer, and aligned with the current economy, allowing for continued tax cuts for workers. A key part of this strategy is the Public Sector Productivity Programme, which aims to ensure that the public sector delivers meaningful results for the public while keeping costs under control. The government has provided additional funding to departments, especially for critical areas such as the NHS, social care, education, and defence. Moreover, measures have been taken to ensure full and fair financial compensation for victims of the Horizon IT scandal. The Spring Budget continues this approach by announcing additional funding for the NHS, childcare, and social care. As a result, total government spending will increase significantly by 2024-25, with an average real annual growth of 3.2% in total departmental expenditure. The government will also continue to invest in infrastructure, with over £600 billion of planned investment in the next five years, aiming to sustain future growth and support vital public services, energy security, and zero-emission targets. More information on the UK Government Website https://www.gov.uk/government/publications/spring-budget-2024/spring-budget-2024-html

The United Kingdom's Finance Minister, Jeremy Hunt, announced this Wednesday (22) in Parliament the new fiscal plan for the country, the so-called “Autumn Declaration”, in which a large tax cut for workers and maintenance or reduction of taxes for companies that invest in modernizing production and in more sustainable enterprises. According to Hunt, the top tax rate for employees will be reduced from 12% to 10% from January 6th. Currently a 12% fee is charged on earnings between £12,571 and £50,271, plus a further 2% on anything above that. The Chancellor announced that this measure will benefit around 28 million people, saving someone on the average earner £450 a year. According to calculations by the Office for Budget Responsibility (OBR), this cut in workers' national insurance will represent a loss of 10 billion pounds per year until 2028/2029. https://www.infomoney.com.br/economia/reino-unido-anuncia-reducoes-de-impostos-para-trabalhodores-e-empresas/