UK Chancellor of the Exchequer Jeremy Hunt said yesterday that the UK would manage to escape recession and that inflation – currently above 10% – will reach 2.9% by the end of the year. Presenting the budget in parliament on a day of strikes in various sectors (from health to transport), the minister said that economic growth is being held back by the lack of workers, and announced support for young parents and elderly professionals. Support for families to help pay for energy will continue for a few more months.
“British economy contradicts those who doubted it”, Hunt said at the beginning of his speech. The new estimates indicate that the economy will shrink by 0.2% – not 1.4% as originally thought – due to the problems in the first quarter, but will avoid the “technical recession” (i.e. , at least two consecutive quarters of GDP contraction). The economy will grow by 1.8% in 2024 and by 2.5% in 2025. The budget he presented is, he says, a “budget for growth”.
On the social discontent, which has led to several strikes since the beginning of the year, the minister says that “high inflation is the basis of the strikes that have taken place in recent months” and promised to “keep working hard to resolve these disputes.” to solve”. , but only in such a way that it does not fuel inflation”.
To combat rising prices, the UK government is extending the grant that helps families pay utility bills for a further three months – the bill will remain at a maximum of £2,500 until July, instead of rising to £3,000 as had been envisaged. “Some people are still struggling and we must always be ready to help when we can,” he said in his speech to the delegates.
The government continues to support families and wants parents of young children to have the opportunity to return to the labor market. To that end, it will offer 30 hours of free childcare per week for babies aged 9 months to 3 years old – currently only children 3 and 4 years old are taking advantage. However, this policy will not take effect until 2025. “For many women, a career break becomes the end of their career,” she lamented. Labor accused Hunt of “copying” his ideas and praised increased support for childcare.
With the elderly in mind and to try to discourage early retirements (namely in education or health care), the government will also increase the amount that workers can add tax-free to pension funds. Labour, in opposition, called this amendment “a £1bn tax cut for the richest 1%”.
Labor leader Keir Starmer responds in parliament: “The economy needed a major intervention. But after today we know that the cabinets of the conservatives are as empty as the salad racks in our supermarkets. The lettuce is gone, but the turnips remain.” said, referring to the famous lettuce that kept longer than former Prime Minister Liz Truss.
Source: DN
