UK government puts economy on wartime footing to curb corona crisis
UK government puts economy on wartime footing to curb corona crisis

While dealing with Brexit issues, the UK has been completely unprepared for a bigger challenge. Prolonged Brexit, uncertainty over trade relations with the EU, and the fall of the national currency have been weighing on the economy for more than two years. The coronavirus impact destroyed the last chances of the UK economy for a steady recovery. Assessing the prospects of the domestic economy, the UK government put forward a plan to raise taxes, freeze wage indexation, and pensions for civil servants. Britain’s finance ministry voices concern that government borrowing this year could hit a record of £337 billion. This is why the government is ready to resort to such drastic measures. "We must act like any wartime government and do whatever it takes to support our economy," Boris Johnson said. "We should also look at opportunities for new taxes that could meet some of the government’s broader policy objectives, raising revenue to relieve long-term fiscal pressures. A one per cent increase in the basic rate of income tax would raise around £5 billion," Finance Minister Rishi Sunak reported. However, despite the peril of a sovereign debt crisis, the UK government agreed to extend the wage subsidy program until October. From May 13, the country began to gradually lift quarantine restrictions and many people started to return to work. If the government continues to reopen the economy, the plan to raise taxes is likely to be abandoned.

Published: 2020-05-22 14:10:08 UTC
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