British Chancellor Jeremy Hunt, responsible for the UK Treasury, announced today, Wednesday, before Parliament: 110 gauge batteryIncluding tax cuts and other stimulus measures, with an annual impact of £20 billion (€22.91 billion), as well as a cut in growth forecasts for the Office for Budget Responsibility (OBR).
The British Chancellor of the Exchequer boasted that the announced package represents “the largest corporate tax cut in modern history and the largest ever tax cut for workers.”
Overall, he said the overall impact of the growth measures would increase business investment in the UK economy by around £20 billion a year, making it the “biggest ever boost to business investment in the UK”. A step in closing the productivity gap with other major economies and the most effective way to increase wages and living standards for British families.
In this sense, the British Chancellor announced the simplification of the tax system applied to self-employed workers, as well as the reduction of social contributions for 27 million workers in the public and private sectors, with a reduction to 10% from 12% for the year 2019. National Insurance: for those whose income ranges between 12,570 and 50,270 pounds sterling. (€14,400 and €57,587), which means saving £450 on an average salary of £35,000 (€40,094). ?
“If we want to encourage work, we must also tackle low wages,” he added, before confirming that, on the recommendation of the Low Pay Commission, the national living wage would increase by 9.8% to £11.44 an hour.
“Instead of stagnating, the economy has grown. Instead of falling as expected, real incomes have risen. Our plan for the British economy is working. But the work is not over yet,” Hunt said, claiming that the Autumn Statement is not betting on higher spending and taxes, because we know that this It leads to less growth, not more. “Instead, we reduce debt, cut taxes and reward work,” he said.
On the other hand, Hunt announced that from April 2024, he will impose a requirement that any company bidding for large government contracts must prove that it pays its own bills within an average period of 55 days, which will be gradually reduced until a maximum of 30 days.
It was also decided to extend the 75% discount on commercial rates for hospitality and leisure retail companies for another year, meaning a tax cut of £4,300 million (€4,926 million). “It is a significant tax cut that recognizes the role of bars and shops in our communities,” he expressed his appreciation.
Betting on artificial intelligence
In his appearance, Hunt highlighted the importance of AI as a center for any future growth, and to strengthen the role of UK universities and scientists, he pledged to invest an additional £500 million (€572 million) in the two countries. The coming years will fund more innovation centers that help the country become an “AI superpower.”
Separately, it announced £50 million (€57 million) in funding over the next two years to test ways to increase the number of apprentices in engineering and other key growth sectors.
Reduction expectations
At the same time, the head of the British Treasury noted that the Office for Budget Responsibility (OBR) expects the British economy to grow by 0.6% this year and 0.7% next year, with a long-term forecast of 1.4% in 2025. And 1.9% in 2026, then accelerates to 2% in 2027, then to 1.7% in 2028.
The Office for Budget Responsibility had previously forecast growth of 1.8% by 2024 and 2.5% by 2025.
Hunt defended his belief that the private sector is more productive in countries such as the United States, Germany and France because it invests more: “If we want these numbers to be higher, we need greater productivity.”
“On average, two percentage points more than GDP each year. He added that the 110 measures help close this gap by boosting business investment by £20 billion a year.
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