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Prime Minister Rishi Sunak: The Conservatives are far behind the opposition Labor Party in current polls
Photo:
Kin Cheung/AP
Ahead of the general election in Great Britain, which is expected to take place this year, the conservative British government has announced further tax cuts for employees - and has thus taken a further step in the struggle for voters' favor.
The social security contribution rate paid by employees and employers will be reduced by two percent from April, said British Finance Minister Jeremy Hunt.
"Thanks to the progress we have made, we can now offer families not only temporary help with living costs, but also permanent tax cuts," Hunt said as he presented the updated budget to Parliament.
Tax relief had already been announced in November.
According to the minister, there are now plans to extend the five percent reduction in gasoline tax for one year and to freeze alcohol tax for six months.
Analysts criticized the billion-dollar tax relief as “modest” given the high inflation that the country is suffering from.
Sunak wants to close the gap of 20 percentage points
The Conservatives under Prime Minister Rishi Sunak have ruled the country since 2010, but according to current polls they are far behind the opposition Labor Party.
Sunak hopes to use the new tax plans to make up for the 20 percentage point deficit before the election.
Labor leader Keir Starmer described the budget as a “final act of desperation by a failed party” and the tax cuts as a “Tory fraud”.
The British are currently having to bear “the highest tax burden in 70 years”.
In February, Hunt called inflation "the biggest obstacle to growth" in the country.
Most recently, the inflation rate was four percent - twice as high as the Bank of England's stated target.
The central bank responded to the massive price increases, which peaked at a good eleven percent in October 2022, with a series of key interest rate increases.
In January, Britain continued to have the highest inflation among the G-7 countries.
spr/AFP