British Prime Minister Liz Truss is trying to be Thatcher. The British pound fell to its lowest level in 37 years

“A government that hides taxes that prioritizes economic growth and focuses on a new fiscal approach for a new era.” To translate the new Prime Minister’s promise into concrete actions Les Truss The new Finance Minister (equivalent to our Economy Minister, so) Quasi Quarting which today presented its “financial microcosm” to the House of Commons. A package of ambitious reforms that include Biggest tax cut since 1972 and tax breaks for 45 billion pounds (about 1.5% of GDP). A shocking intervention that left the British and economists speechless and plunged the pound to its lowest level in 37 years, especially since The maneuver was presented without the slightest hint for its financial coverage. A big problem for a country that imports a lot of the gas and the food it consumes. Yesterday, the Bank of England raised interest rates by 0.5%, less than expected, and officially announced ga The word “stagnation”. Kwarteng’s planned ‘Relaunch of UK Economic Competitiveness’ passes Controversial measures But it is of high political value for the new “Iron Lady” Truss government that it replaced Boris Johnson Specifically in the name of the radical Thatcherism

The rich are richer and the poor are…we’ll see The idea of ​​the Truss government is the idea of ​​the so-called ‘Economy Flowing Down’, In practice, the tax exemption from the world of finance and large corporations so that wealth produced “drips” even at least wealthy, creating new opportunities. As part of this approach, the Chancellor also removed the infamous cap on bonuses paid to city bankers that was introduced after the 2008 financial crisis and subsequent public bailouts. The stated goal is to “attract more bankers to work in London,” by paying taxes in the UK rather than other European countries.

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government abolished The expected increase in corporate tax, Corporate tax in order to encourage investment and create job opportunities. As early as April 2023 i 629 thousand taxpayers Rich people earning more than £150,000 a year will be exempted from the higher tax rate of 45% – which will be abolished and replaced by the 40%, currently applied to income over £50,000. The base rate for lowest entry has also been reduced (for those who earn from 20 thousand to 50 thousand pounds) from 20% to 19%. In general, however, the reform rewards the wealthy classes. As he writes on Twitter Joe Mugamboss Good bill:The Les Truss funding means that those who earn £1 million a year will put £54,400 in their pockets while those who earn £25,000 will save the equivalent of £280. It’s hard to imagine a worse response to a high-cost emergency.”

power emergency – What really matters to families is being able to. Spend the winter without bleeding to pay for food and heating. The power package allocated by the mini finance gears emphasizes Freezing of bills of exchange, up to a maximum of 2500 pounds For two years to allocate for this purpose 60 billion poundsOr which, however, the public treasury will bear in full. The energy giants were already Exempt from the so-called “sudden income tax” The tax is on extra profits for companies that produce gas and electricity, which will also enjoy an emergency liquidity package guaranteed by the government and the Bank of England. “Removing the bankers’ profit cap, lowering corporate taxes and rejecting the windfall profit tax, is a merciless signal that we are going to get it.” A winter of poverty for millions of people Not because we are a poor country but because we have more and more social inequality,” commented the former Labor Prime Minister Gordon Brown.

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Altogether, 45 billion maneuvers would be financed through standard debt, At a time when the Bank of England was forced to raise interest rates from 1.75 to 2.25%, the highest level in the last 40 years, to curb hyperinflation. The Labor opposition has an easy game of response: “The Conservatives are committing a vicious circle of stagnation – said the shadow minister. Rachel Reeves – The government has confirmed that the costs of freezing energy bills will be financed through debt without compromising the huge profits of the energy giants. Oil and gas producers will Toast to the employee while the workers receive the bill. Debt is higher than we can afford at a time when interest rates are high, and the chancellor refuses to publish the independent economic commission’s projections on the impact of the maneuver on our public finances, economic growth and inflation, this budget is a list without rates “

Re-launch investments The Truss government aims to “attract investment” by pushing for the acceleration of infrastructure projects and the creation of 40 investment zones in the country, where the development will be tax-free for companies. For us Italians, the good news is that foreigners shopping in Great Britain They will no longer have to pay VAT. He commented: “We cannot continue with 15 years of anemic growth – a simpler and smarter tax approach could pay off and companies would be willing to maximize investment incentives. Tony DunkerDirector of CBI the British Confindustria – Microfinance isn’t perfect and we’re just getting started but the chancellor has signaled that there will be more economic proposals this fall that will be essential to sustain growth.

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Many in Westminster describe Truss as a dangerous gamble by the government toward elections: Will Truss’ tax cuts bring the economy back in time by 2024? While they think about it, Brits will be able to drink it for now, as they do Liquor tax, 600 million pounds frozenThey can save 7p on a pint, 38p on a bottle of wine, and £1.35 on a bottle of spirits. At least the bars are safe now.

Harold Manning

"Infuriatingly humble social media ninja. Devoted travel junkie. Student. Avid internet lover."

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