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UK scraps corporate tax hike, raises bonus cap for bankers – Times of India

LONDON: The UK government on Friday scrapped corporate tax hikes and lifted caps on bankers’ bonuses in a controversial bid to boost a struggling economy.
Secretary of the Treasury quasi-quota made a presentation at parliament When he presented his legislators with a “mini-budget.”
The UK government is set to release an emergency budget statement on Friday, outlining how it will cut taxes, curb surging inflation and boost economic growth amid a looming recession. .
A “mini-budget” to be presented to parliamentarians by Treasury Secretary Kwasi Kwarten is expected to scrap the planned corporate tax hike.
prime minister Liz TrussThe British leader less than three weeks ago has repeatedly emphasized that a core mission of her Conservative government is to cut taxes to boost economic growth. She declared this week she was ready to make “unpopular decisions”, such as raising bankers’ bonuses to attract employment and investment.
The Fiscal Institute predicts that Friday’s statement will be Britain’s “largest tax cut fiscal event” for more than 30 years, although it’s not a full budget.
“Taxing the road to prosperity never worked. We need to be ruthless about economic growth if we are to raise living standards for all,” Kwarteng said Thursday. “Tax cuts are essential for this.”
Ahead of Friday’s statement, the finance secretary confirmed that he was withdrawing the increase in workers’ national insurance premiums introduced by the previous administration. and imposed delinquency of public health services.
Explosive inflation and cost of living crises caused by skyrocketing energy costs are the most pressing challenges facing the Truss administration. Inflation hit 9.9%, near its highest in the UK since the 1980s, and is projected to peak at 11% in October.
Over the past two weeks, the government has announced caps on gas and electricity bills for homes and businesses. There are fears that the poorest people will not be able to afford to heat their homes and businesses will go out of business this winter.
But British authorities have not disclosed how the bailout will be financed, which analysts say could amount to tens of billions of pounds.
Some economists warn that government borrowing is soaring.
The Fiscal Institute warns that borrowing will reach £100bn ($113bn) a year, even after temporary energy bill support measures end in two years. With so much debt, he said officials’ claims that lower tax rates would lead to sustained economic growth were “a bet at best.”
Institute director Paul Johnson also said the Conservative government’s measures to help millions of people pay their energy bills would not reverse the steady decline in living standards.
“I worry that the energy price shock will make us poorer and make our lives worse,” he said. You can, but you can’t magically remove it in the end.”
On Friday, Kwarteng will unveil new ‘investment zones’ across England where the government will offer tax breaks to businesses and help create jobs. He also details how the government aims to accelerate dozens of major new infrastructure projects involving transportation and energy.
Inspired by Margaret Thatcher’s small state free market economics, Truss argues that economic growth and tax cuts for businesses benefit everyone in the country.
But critics say Truss’ right-wing instincts are the wrong response to Britain’s economic crisis.

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