England (Commonwealth Union) – Chancellor of the Exchequer Jeremy Hunt’s autumn budget announcement has been met with disappointment by those who seeing a freeze on tax allowances, and some feeling positive with raised benefits and increased wages.
The British public have expressed a variety of opinions on the causes of the current economic crisis and common among them were the COVID-19 pandemic lockdowns that devastated businesses both in the UK and most parts of the world, which were also forced to impose lengthy lockdowns. Other common factors being blamed for the crisis include the Russia – Ukraine war, with many concerned about Britain’s approach on peacefully resolving the crisis, which is likely to impact the ongoing energy crisis that goes beyond Britain impacting most of Europe and other parts of the world that have imposed sanctions on Moscow. Britain’s debt and its impact on the economic crisis is another key concern among the public, a matter which may be addressed as Hunt stated recently that Britain will lower debt as share of GDP within 5 years.
The Chancellors announcement included a £55 billion package of tax rise and spending cuts, which he indicated were necessary due to the pandemic and the Russia – Ukraine war. Some of the announcements included a freeze on income tax personal allowance at £12,570 being extended for another 6 years till 2028.
The windfall tax, established by Prime Minister Rishi Sunak when he was Chancellor, which is a tax usually levied companies benefitting from the present environment. He forwarded a windfall tax on energy corporations and Hunt has now indicated that the windfall tax on oil and gas companies will increase from 25% to 35%, extending it to March 2028 and electricity firms will be imposed with a new temporary levy.
The latter also noted that the UK’s overseas aid spending will be reduced from 0.7% of GDP to 0.5%.
