The British government on Wednesday unveiled a budget marked by new austerity measures as growth slows, but also tax breaks as we approach the referendum on membership of the European Union.
the country faces “a dangerous cocktail of risk”, with poor prospects of the global economy and market turmoil, warned the Chancellor? Exchequer Conservative George Osborne, in a speech to Parliament.
Having already warned last weekend that new austerity measures were the order of the day, it announced additional savings in government spending for total of 3.5 billion pounds (4.5 billion euros) by 2020, slightly less than what was expected.
“Our economy was strong but clouds of storm are gathering again on the horizon Our response to this challenge is clear. a budget where there now is not to pay more late, “he argued
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These new cuts, albeit limited, comes as the Conservative government is under pressure to meet its fiscal consolidation targets.
George Osborne has recognized that he was going to miss its target to reduce the debt compared to the gross domestic product (GDP) this year, although it still expects to generate a budget surplus before the next parliamentary elections in 2020.
the government’s task is complicated by the downturn growth, which reached 2.2% over the whole of 2015, after the 2.9% recorded in 2014.
the new forecasts unveiled Wednesday were widely downgraded from those contained in the amending budget last fall, growth should reach 2.0% this year (against a previous forecast of 2.4%) and 2.2% in 2017 (against 2.5% ) and 2.1% in 2018 (against 2.4%).
the economy of the United Kingdom is indeed under threat from Chinese slowdown and problems of its neighbors in the euro area, with which it conducts most of its trade
-. Freezing of taxes on gasoline and beer –
to get the pill of new austerity measures, George Osborne confirmed investments in infrastructure and education, and announced some tax breaks.
He confirmed the green light to HS3 project to improve the rapid rail link east-west in the northern England, as well as preliminary studies for future Crossrail 2 line that would cross from north to south London.
the chancellor also promised £ 1.5 billion for education, with a promise autonomy for English schools vis-a-vis local authorities. A tax on sugary drinks has also been announced to reduce childhood obesity.
George Osborne said the Wednesday unveiled economic forecasts were based on the scenario of a UK remaining in the EU to three months the historic referendum of 23 June on British membership.
As the Finance Minister, the Conservative Prime Minister David Cameron calls for maintaining the EU as a result of concessions obtained from its European partners, but part of the opinion is tempted by ” Brexit “that appeals to the ranks of the Conservative party and to the government.
in this tense context, George Osborne has refrained from taking measures likely to alienate voters or split just over his party.
He has given up just in time to a potentially explosive pension reform and caressed voters in the direction of hair with a freeze on fuel tax … and on beer, cider and spirits such as whiskey. “I want to support responsible drinkers and pubs in our country,” assured George Osborne.
He also announced tax measures for SMEs and a further decline in tax companies (which will reach 17% in 2020 against 20% at present).
the leader of the Labour opposition, Jeremy Corbyn, for his part denounced a budget “that the injustice in her heart” and brand “the culmination of six years of failure” for George Osborne, often presented as the possible successor to David Cameron to head the Conservative
03/16/2016 4:21:11 p.m.. – London (AFP) – AFP © 2016
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