The new British government of Prime Minister Rishi Sunak wants to plug the deep holes in the budget with a restructuring plan.
Treasury Secretary Jeremy Hunt presented his financial plans on Thursday.
This is intended to close a budget gap of around £55 billion (around €62.8 billion) over the next few years.
Almost half of this should come together on the tax side.
Among other things, excess profit taxes for oil and gas companies are to be increased and electricity suppliers will also be asked to pay in the future.
The tax burden for higher earners is also increasing.
The threshold for paying the top rate of income tax will drop from £150,000 to £125,140 a year.
It's about asking more of those who have more, Hunt stressed.
"Today we are unveiling a plan to tackle the cost of living crisis and rebuild our economy," said the finance minister.
He had announced "tough but necessary" decisions that should also help curb rampant inflation on the island.
The austerity course is a drastic course change after the short reign of Sunak's predecessor, Liz Truss, who had triggered turbulence on the bond markets with financially unsecured tax cut plans, which only subsided after intervention by the central bank.
Great Britain is sitting on a mountain of debt of 2.45 trillion pounds (around 2.8 trillion euros).
With his restructuring course, Hunt wants to ensure that investors' lost confidence returns and that the state's financing costs are kept in check.
"Trust doesn't come for free," Hunt said.
"We Conservatives are not leaving the debt to the next generation." The Treasury Secretary said the UK economy was already in recession, according to the UK's independent budget authority.
In 2023, economic output is expected to shrink by 1.4 percent.
The central bank fears that the recession could drag on for years.