London Thanasis Gavos

The British government presented its last budget before the elections to be held later this year.

Chancellor of the Exchequer Jeremy Hunt has reserved some notable changes, notably to some taxes and child benefit, but the first reading of the majority of analysts is that this is a generally “anemic” budget that will not improve the Tories’ poor polling image.

The key measure announced by Mr Hunt is a further 2% reduction in social security contributions for employees (from 10% to 8%) and the self-employed (from 8% to 6%). The measure leaves in the pocket of the first 450 pounds more per year on average than the second 350 pounds.

Also announced was the phase-out, with a grace period, of the controversial ‘non-doms’ tax regime, which allowed UK residents to avoid paying tax in the country by declaring abroad as a tax residence.

It also changes how it is calculated and increases the income limits for child benefit, benefiting hundreds of thousands of families.

From there, Jeremy Hunt announced that: he is keeping emergency aid to councils to support poor households for another six months (although aid organizations were asking for a two-year extension) – he is introducing a new “public sector productivity plan” with an emphasis on the public health system NHS and modernizing its digital systems – announces new funding package for local and devolved governments – will give tax breaks for film and TV productions – approves extra funding for cancer research and to tackle other conditions such as dementia and epilepsy – extends by one year, until 2029, the extraordinary tax on energy company profits – increases the tax on business class seats on airline flights.

Also, from April 1st, the annual income limit for mandatory registration of businesses for VAT increases to 90,000 pounds (from 85,000).

It also extended until February 2025 the freeze on the liquor tax for the benefit of thousands of pubs and catering businesses, and it was announced that a tax on vaping liquids would be imposed for the first time from 2026.

Turning to the independent Office for Budget Responsibility’s (OBR) fiscal forecasts, which accompany government budgets, Mr Hunt said inflation was expected to fall within “months” from 4% to below 2%, which is the mandate. of the Bank of England.

The growth rate is forecast to be 0.8% this year and 1.9% next year, higher than previous forecasts in the fall (0.7% and 1.4% respectively).

Public debt is forecast to fall below 94% by 2028-29, while the initial forecast was for it to exceed 100%. Mr Hunt spoke of the lowest public debt among the G7 countries.