The head of Britain’s state casino, Jeremy Hunt, has a plan to cut the state budget deficit. Using all sorts of measures on the spending but also income side, it wants to find up to £55bn. The British Office, which oversees budget responsibility, expects Britons” living standards to fall by up to seven per cent.
Will there be a tax increase?
Almost half of the £55bn Jeremy Hunt wants to save is to be raised on the income side, the rest on the spending side. Thus, Britain’s finance minister confirmed that the government would have to step in to raise taxes. Hunt thus presented quite the opposite plan to what the then Prime Minister Liz Truss came up with approximately two months ago.
Tax quota will be the highest since the end of WW2
The tax quota is set to rise to more than 37 per cent of Britain’s gross domestic product. This will be the highest ever level since the end of World War II. In 2019 and 2020, the tax quota was around 30 percent of GDP.
Britain’s Office for Budget Responsibility, which oversees the development of public finances, has announced that a reduction in living standards must be envisaged. The latter, even because of inflation, should fall by about seven per cent by April 2024.