United Kingdom: a new post-covid-19 crisis budget

UK Finance Minister Rishi Sunak presents his new budget this Wednesday, October 27, 2021. REUTERS - Hannah Mckay

Text by: Claire Digiacomi

2 min

In the United Kingdom, Finance Minister Rishi Sunak presents his new budget this Wednesday, October 27, at midday.

An important announcement while the country is still suffering the financial consequences of the health crisis linked to Covid-19.

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From our correspondent in London

It is above all a budget to straighten the accounts after the crisis.

The UK has a deficit not seen since World War II.

During the pandemic, the conservative government had to renege on its principles by massively opening up public spending, for example by creating the partial unemployment scheme, which did not exist in the country.

It is therefore time to replenish the coffers and the government has already announced a tax hike: plus 1.25 points in April for social contributions, and more 25% for corporate tax from 2023.

The minister also plans to make choices, by limiting the envelopes.

According to the research institute IFS, the budget of certain public services, such as higher education or justice for example, could stagnate or even suffer cuts in the future.

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Investments in public health 

Some sectors will nevertheless receive investments, in part precisely thanks to tax increases.

The government will thus focus on the NHS,

, hard hit by the crisis.

Several tens of billions of pounds of expenditure, above all to absorb the very important delays in care accumulated during the pandemic, but also to promote innovation in the medical sector.

Nearly 7 billion pounds, more than 8 billion euros, will also be dedicated to the renovation of regional bus, tram or train lines.

Announcements are also expected on

.

The UK government is committed to carbon neutrality by 2050.

Minimum wage increase 

Wages should not be limited either: the Minister of Finance announced Tuesday, October 26 an increase in the minimum wage. It will

in April from 8.91 pounds gross per hour to 9.50 pounds, or 11.26 euros, an

. It also provides for the end of the wage freeze in the civil service. According to the government, this measure should benefit " 

 ", nurses, teachers, soldiers.

But we must put these announcements in the context of the current crisis.

This boost on income, and in particular on the minimum wage, should above all compensate for the fall in social minimums, the rise in social contributions or even that of energy prices.

The Labor opposition also believes that the government is not going far enough in the financial effort.

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