From around 12:30 p.m., Chancellor of the Exchequer Jeremy Hunt is due to unveil in Parliament a plan to "halve inflation, grow the economy and reduce the debt", according to a Treasury statement.

“Aid will be centered on people with disabilities and those suffering from long-term illnesses, on parents, over fifty years and people who benefit from minimum income (Universal credit)”, details the Treasury.

Mr. Hunt must in particular present measures to help parents sometimes forced to reduce their professional activity because of the exorbitant cost of childcare, and to encourage older workers to remain in the labor force.

The inactivity rate in the UK, at 21.3% according to the latest figures available, remains higher than before the pandemic and is weighing on the economy, further adding to the difficulties in hiring European workers after the Brexit: in all, 1.1 million jobs are unfilled in the country.

The under 24s, who had resumed studies during the confinements faced with the lack of professional opportunities, are gradually returning to work.

But thousands over fifty have chosen to take early retirement, and record numbers of Britons are being kept out of work by long-term illnesses, one of the consequences of the pandemic and underfunded public services health.

The Conservative minister also wants to put pressure on the recipients of social minima, with a stricter application of sanctions in the event of breaches of their obligations.

Strikes for wages

The issue of civil servants' salaries is also a burning issue and could be included in the budget, after strikes which have multiplied for several months for purchasing power in health or education.

Teachers march through the streets of London on February 1, 2023 © ISABEL INFANTES / AFP

Several hundred thousand people could disengage Wednesday but also Thursday in transport, medicine, among civil servants, among others.

With inflation at more than 10% in the country, which has caused purchasing power to fall, the government is expected to turn on the cost of living.

Pressure has thus increased to encourage Jeremy Hunt not to raise the ceiling on bills paid by most British households, which is supposed to rise further on April 1.

The Chancellor also promised to put an end to the higher energy tariffs paid by the more than 4 million homes in the country, often modest, connected via prepaid meters.

On the tax side, the business community is worried about a long-announced rise in corporation tax from 19 to 25% in April, while a freeze on fuel taxes is also widely anticipated.

On Wednesday, the OBR, a public budget forecasting body, should at the same time publish its new forecasts for the country's economy.

If the outlook is not very encouraging – according to the IMF, London will this year be the only major economy to experience recession – the Chancellor of the Exchequer can count on better than expected indicators.

The UK avoided recession at the end of 2022 and growth rebounded to 0.3% in January in the country.

In addition, London has borrowed 30 billion pounds (34 billion euros) less than expected cumulatively during the current fiscal year, which gives Jeremy Hunt some leeway.

The Minister of Finance is also expected to announce his intention to create 12 "investment zones" accompanied by tax incentives, located in particular in the north and center of England, which will complete a program of ten "free ports" at the advantageous taxation currently deployed in England and Scotland.

© 2023 AFP