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Wednesday, October 5, 2022

New UK government reverses planned tax hike

The government of British Conservative prime minister, Liz Truss, this Thursday announced the end of an increase in contributions to Social Security initiated by Boris Johnson’s previous executive.

The head of the economy, Kwasi Quarteng, processed a law this Thursday to cancel the increase of 1.25% of contributions implemented from last April on 6 November, while a further increase of 1.25% would also not apply. Which was set for April 2023, a statement depicted.

It added that the announced increase of 1.25% in rates on dividend has also been reversed.

These tax increases, which affect both citizens and companies, were specifically designed to finance social services and social care, which were particularly reduced during the pandemic.

The government has assured today that an amount expected to collect around £13,000 million (€15,000 million) per year will also be allocated to that sector derived from ordinary taxes.

The controversial repeal of these taxes, drafted by Quarteng’s predecessor, Rishi Sunak – who was the truce’s rival for the government’s leadership – is part of a general “growth” plan that this executive will detail on Friday.

According to the advances, as part of this strategy, the government will not increase the corporate tax and eliminate the cap on premiums in the financial sector, while providing loans to energy distributors to limit the increase in bills.

Taking these measures, which will lead to an increase in the public debt, which she plans to reduce “in the medium term”, the prime minister plans to ease regulations and bureaucracy in both the finance and construction sectors.

In its statement, the government emphasizes that its main mission is to “raise the standard of living in the United Kingdom by enhancing the economy through the private sector.”

Thanks to tax cuts, “companies will have more money to invest to be more productive, pay higher wages, create more jobs, and support the general growth of the economy,” he argues, an economic argument. in which has been refuted by the Labor protest.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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