The United Kingdom’s Chancellor of the Exchequer Jeremy Hunt has unveiled a budget, featuring tens of billions in spending cuts and tax increases as the country’s new government seeks to restore the economic credibility and patch up the nation’s battered finances.
Hunt on Thursday delivered the plan for tackling a sputtering economy in a speech to the House of Commons, saying it prioritised “stability, growth and public services”.
He said more than half of the needed 55 billion pounds ($65bn) fiscal consolidation would come from cuts in spending.
“On tax, I have tried to be fair by following two broad principles: firstly, we ask those with more to contribute more; and secondly, we avoid the tax rises that most damage growth,” Hunt said.
He reduced the threshold at which the 45 percent personal income tax rate becomes payable from 150,000 pounds (about $178,500) to 125,140 pounds (about $148,900).
Those earning 150,000 pounds (about $178,500) or more will pay just more than 1,200 pounds (about $1,400) more a year. Hunt also said his government would increase a windfall tax on oil and gas firms and extend it to power generation firms. Credit: Aljazeera.com
Credit: aljazeera.com
