UK Faces Key Week With Recovery Budget

The British Government will present the budget by the Minister of Economy, Rishi Sunak, which will announce new employment aids and, predictably, will raise taxes on companies. Taxpayers and businesses await with attention the measures that Sunak will announce this Wednesday in the House of Commons, aimed at prop up the UK economy after the heavy shock caused by the Covid-19 pandemic.

According to the Treasury, Sunak hopes to announce a initial investment of 12,000 million pounds (13,800 million euros) for a new UK Infrastructure Bank, which will start operating in the coming weeks and whose mission will be to help finance projects after the country leaves the European Union (EU). “We are supporting this bank with the finances it needs to promote modern infrastructure suitable for the 21st century and create jobs“said the so-called” Chancellor of the Exchequer “.

The Government has announced this Sunday that the minister will unveil a subsidy scheme for bars, pubs, restaurants and other non-essential businesses so that they can reopen their facilities, once the restrictions begin to be relaxed on April 12. This plan has a £ 5,000 million fund (€ 5,750 million) and will allow the granting of up to maximum of 18,000 pounds (20,700 euros) per business, and will be available from April 1 through local authorities in England. The other British regions, according to the Government, will also receive additional funds for these sectors.

“What I want to do is support our economy now when it needs it, support along the (de-escalation) roadmap, help the recovery, “Sunak insisted today to the Sky chain. However, he admitted that the country faces challenges due to the” shock “that Covid-19 has caused in public finances, and reiterated his commitment to support the lowest income employees.

Demonstration by CCOO and UGT to demand the withdrawal of the ERE from Aernnova

The pandemic left the country more indebted

The measures applied since the beginning of the pandemic, designed to avoid mass unemployment, have left the country’s public coffers in a difficult situation, to the point that British debt has reached 97.9% of gross domestic product (GDP).

The country’s accumulated debt reached 2.11 trillion pounds (2.40 trillion euros) at the end of last January, after the country will go into debt with 271,000 million pounds (311,650 million euros) so far this fiscal year -April 2020 to March 2021-, which means 222,000 million pounds (255,300 million euros) more compared to the previous year 2019-2020.

Speaking to the BBC, the Minister of Economy He did not want to advance today how the Government will clean up the public accounts and insisted that his current mission is recovery. Sunak He also did not want to anticipate eventual tax increases because that can affect the opening of the markets on Monday.

Nevertheless, analysts do not rule out that the Government decides to increase the corporate tax, which currently stands at 19%, and would keep those of taxpayers with the lowest incomes frozen for the time being. For every percentage point increase in business tax, the UK collects about 3.3 billion pounds (3.796 billion euros), according to expert estimates.

On Wednesday, Sunak hopes to give more details about the current plan that helps companies pay the salaries of their employees up to 80% of their salary, a measure that will continue until April, but that the Labor opposition asks to be extended.

Internship programs

Among other things, the Government make work placement programs more flexible and double incentives that companies receive for incorporating young people in training. This measure aims reduce the unemployment rate, which stood at 5.1% between October and December 2020, compared to 5% in the previous quarter, so Sunak plans to announce a departure of 126 million pounds (144 million euros) to facilitate the creation of 40,000 internships in companies in England.

The confinement measures imposed in the United Kingdom due to the covid-19 pandemic, they hard blow to the country’s economy as gross domestic product (GDP) suffers in 2020 a record contraction of 9.9%.


Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.

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