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The new British government had promised reform, growth, tax cuts. The Minister of Finance has just unveiled his project in Parliament: a catalog of measures aimed at encouraging investment and reviving growth.
With our correspondent in London, Emeline Wine
End of the ceiling for bankers’ bonuses, abolition of the upper income tax bracket, creation of investment zones… With its tax event, Kwasi Kwartengthe Minister of Finance of United Kingdomi, hope to restart growth. “We need to unleash the potential of the private sector. Growth is not as high as it should be. As a government, we will focus on growth, even if that means making tough decisions. Here is an unprecedented package of tax incentives, to invest, to build and create jobs “, he said.
More than 50 billion euros in tax cuts, according to Paul Johnson. The director of the Institute of Fiscal Studies fears an excessive recourse to borrowing. ” If growth resumes, it will be sustainable. Otherwise, it won’t. It’s a huge bet”.
“There is a chance it will pay off, but the fact that the government is pumping tens of billions of pounds into the economy at a time when inflation is very high worries me more than the fiscal situation. We can always come back to that. But if inflation takes off, it will be very difficult to regain control “, did he declare.
And to answer the energy crisis affecting Europe, energy bills are frozen for two years, at £2,500 for an average household, a government-funded rebate of at least £1,000. Same thing for companies who will see their invoices covered for about half for six months.
Prime Minister Liz Truss has admitted that these policies will mostly favor the wealthy and even some Tory MPs are rejecting the new plan.