One last step forward before two inevitable steps back. Economy Minister Rishi Sunak presented his annual budget bill on Wednesday, which includes up to an additional 75,000 million euros in the next two years to help citizens and businesses out of the pandemic. It was also the moment MPs – especially conservatives – were warning that the time was close to rebalancing the surplus public accounts. The accumulated debt [durante esta crisis] It can only be compared to those contracted during the two world wars. Its return will be a task for many governments for decades. ”The Boris Johnson government is preparing to break the trend that has continued since 1982 and will raise the corporate tax by up to six percentage points, from 19% to 25%. But the increase will not come anymore, but it will be delayed until 2023. In contrast, during the next two years of the financial truce, Sunak announced an incentive plan that has not yet been used in the UK. Subtracting up to 130% of the investment it makes from its tax base in an effort to make the British economy more competitive in the post-Brexit era.
The corporate tax will not be the only tax to rise in two years. The government will raise the minimum income tax exemption, which has so far been set at around 14,400 euros, and lower the level of income from which the maximum rate is paid at 40% (so far, about 58,000 euros). For now, incomes above 175,000 euros will maintain the aggravating rate of 45%. Sunak also announced a review of the maximum accumulated private pensions that the British can extinguish without taxing them.
A tough battle begins in the coming weeks, as the economy minister will have to confront the most powerful wing of the Conservative Party, which has been warning for some time against its opposition to any tax increase. Ironically, the leader of the Labor opposition, who argued just a week ago that no greater taxes should be imposed on individuals or companies in the short term, appears willing to support Sonak’s proposal. There were many voices on the left critical of Kerr Starmer’s economic approach.
Sunak announced an extension Job retention scheme (Job Retention Scheme), a program similar to Spain’s ERTE, through September. Completion date is set for April. Until June, the government will bear up to 80% of the salaries of workers who are forced to stay home. After that, your contribution will gradually decrease.
The British government estimates that its added debt this year and next year will amount to about 680,000 million euros. Sunak hopes to revive the British economy thanks to promised aid for the next two years and the apparent success of the vaccination campaign, which the UK launched a month ago from the rest of Europe.