Treasurer Jeremy Hunt announced on Wed plan hopes to do speed up Britain recession economyincluding childcare and tax reforms to get by more people inside work And corporate tax breaks to promote low levels of business investment.
Saying that the world sf is the largest economy That was now expected avoid slack this year – Even if it still is set To contract – Hunt also He said he would extend help for families hit By increasing energy bills and freezing taxes on fuel.
“In the face of huge challengesI inform you today on British economy Which proves the doubters wrong, Hunt said, to the derision of the opposition Labor party riding high in upcoming polls of Expected elections next year.
In the fall we are took difficult decisions To stabilize and sound money Hunt said, who He was transferred to the treasury last October to undo plans for Tax cuts that sowed chaos in financial Markets During the Short Prime Ministership of Liz Truss.
“Since mid-October, 10-year gold rates fell, debt Service costs are down, mortgage rates are lower, and inflation is peaking. International Monetary Fund (IMF) says Our approach means the United Kingdom economy He is on right track.”
after trauma of Brexit, the covid-19 pandemic is heavy hit And doubleBritish numbers swelled economy He is the only one one Among the G7 countries that have not yet recovered their pre-pandemic size already suffered a decade of Almost stagnant income growth.
Hunt and Prime Minister Rishi Sunak have resisted calls from some lawmakers in ruling conservative party for big Tax cuts now, with focus instead on the debt rules he announced late last year to calm the chaos in British bond markets.
But he found money To extend government energy bill support for For another three months and fuel for ten years duty Frozen by someone else year.
he also announced a new Incentive for business investment that will allow companies to compensate 100% of their capital expenditures against Earnings, although they represent scaling-back of tax exemptions under a previous law, two-year a plan.
Other measures included more investment in nuclear power.
Hunt said government He was add £11 billion ($13.28 billion) defense budget – that was stretched From Britain support for Ukraine in its war with Russia – over the next five years.
under new set of Forecasts, the gross domestic product (GDP) was set shrink by 0.2% in 2023 instead of contracting at 1.4% as projected by the UK Independent Office for budget responsibility (OBR) in November.
Since then, energy costs have gone up – after energy prices in Russia went up invasion of Ukraine – it has come down And there were signs of a recovery in Some economic data.
Office today for Budget responsibility expected it because of changing international The factors and measures that I take, the United Kingdom will now not enter this technical recession yearHunt said.
The Office for Budget Responsibility predicted that economic output would grow by 1.8%. in 2024 and by 2.5% in 2025, Hunt said, compared with her previous predictions for growth of 1.3% and 2.6%, respectively.
Although it continues global Instability, OBR report today that inflation in UK will drop from 10.7% in the final quarter of last year to 2.9% in the end of 2023,” Hunt said.
Several economists said Hunt may want to hold out back Some financial firepower for close to the next national election.
But Wednesday’s forecast confirmed the limits on the government’s options Going forward.
They showed that Hunt’s goal was to get £2.5 trillion from Britain of debt falling as a share of gross domestic product in The time was five years on Of course be met with isolating area of just 6.5 billion pounds.