The Sunak government in the UK announced a fiscal consolidation plan centered on significant tax increases and spending cuts.
The focus is on how well the plan, which is the cornerstone of the government's management, can win the understanding of the people who are suffering from record inflation.
The plan was announced by Finance Minister Hunt on Wednesday.
According to this, the target of applying the highest tax rate of income tax will be expanded, and taxation will be strengthened for companies that are profiting from soaring energy prices. We aim to improve the balance of payments by a total of 55 billion pounds, or more than 9 trillion yen in Japanese yen, through expenditure cuts.
Finance Minister Hunt said, ``The UK is already in recession. It is," he emphasized.
The Sunak administration has carefully considered policies that emphasize fiscal discipline, in light of the fact that the large-scale tax cuts proposed by the previous Truss administration caused market turmoil and led to his resignation after just one and a half months.
However, in the UK, the inflation rate exceeded 11% last month, the highest level in about 40 years, and transportation workers and others are frequently on strike demanding wage increases, and nurses' unions will go on strike nationwide within the year. I decided to take the plunge for the first time.
Under these circumstances, the focus is on how much understanding can be gained about the fiscal plan, which will lead to a further increase in the burden on the public and businesses.