Britain: A tsunami Comes With A Tax Increase by £40 Billion

Rachel Reeves’ Finance Minister announced today “a 40 billion sterling increase” (48 billion euros) when presenting the first budget of the new Labour government, blaming a “hole” on public finances inherited from the previous Conservative government. Among these tax increases, the British Ministry of Finance, Reeves, has announced an increase in employers’ contributions, the percentage of which is increased to 15% while the minimum level from which the contribution starts to be paid will be reduced, which will be estimated to generate additional revenues of GBP 25 billion per year by the end of the legislative period, as he explained. There is also an increase in capital gains tax at the highest rate of 24%, but assures that the United Kingdom “will always have the lowest capital gains tax from all European economies of the Group of Seven most developed industrial countries (G7)”. “The only way to improve living standards and increase economic growth is investment, investment, investment,” Reeves said, adding that the country must “restore economic stability and turn a page after 14 years” of Conservative governments. Reeves also announced that the public financial forecast agency OBR improved its forecasts for the development of the British economy in the coming years, predicting an increase of 1.1% of GDP this year (against 0.8% which was the previous forecast) and an increase of 2% next year (against 1.9% previously).