Tax hikes eclipse other key budget announcements in UK

The United Kingdom has been facing steady inflation, a slack economy and a budget deficit.

The Chancellor said too many families are still struggling with the cost of living, which is why the budget included a range of measures to cut bills and boost pay packets, according to an official release.  

He announced a £150 household energy bill saving, a fuel duty freeze and hikes in national minimum and living wages.

Changes to the Welsh government fiscal framework will mean that government has an extra £425 million spending power over the next few years.

Reeves announced reforms to modernise the tax system, asking those with broader shoulders to contribute more through long-overdue fair reforms.

An Artificial Intelligence (AI) Growth Zone will be established in North Wales with an investment of £5 million, creating 3,450 jobs, she announced. A similar zone in South Wales will create more than 5,000 jobs over the next decade.

The Youth Guarantee package announced will include ensuring that every eligible 18-to-21-year-old who has been on Universal Credit and looking for work for 18 months in Great Britain will get a six-month paid work placement.

Responding to the Chancellor’s Budget statement, Shevaun Haviland, director general of the British Chambers of Commerce said: “The Chancellor has listened to our calls and made the right choice by not piling major new tax rises on businesses’ shoulders, which will calm nerves. Firms will be pleased to see the commitment to transport and infrastructure, and critically the funding for planners the BCC has called for. It is now vital that the Government delivers on these promises.

“Business will welcome support for youth employment, stamp duty relief, protection for capital spending, a reduction in business rates multipliers and some investment tax breaks. They will be worried about salary sacrifice changes, mandatory wage increases, and retention of the energy profits levy, which will maintain cost pressures.

“Alongside this, we have seen UK-wide business support funding of almost £1bn axed and replaced with a system of piecemeal support which favours select urban regions. That risks further regional inequality and damage to rural economies. While most businesses will weather this new financial landscape, they are still being squeezed by rising costs. Many will be disappointed that this Budget did not provide a more compelling blueprint to deliver transformational growth.”

ALCHEMPro News Desk (DS)