UK finance minister announces tax hike

The British government has unveiled a £55bn ($66bn) comprehensive budget plan aimed at closing the gap in public finances and restoring confidence in the economy.

And UK Secretary of the Treasury Jeremy Hunt announced during a presentation of the new budget to MPs a “new temporary tax of 45 per cent on electricity producers”, noting that the exceptional income tax on giant energy companies would be increased from 25 to 35 per cent and extended to 2028.

The measures also included a six-year freeze on income tax thresholds and a cut in the top income tax rate to £125,000, in direct contradiction to the massive cuts touted in the catastrophic September mini-budget.

“Unjustified tax cuts carry the same risks as unsecured spending,” Hunt told the Commons, noting that “these measures will reassure the markets that the government and the Bank of England are now operating at a steady pace.”

He stressed: “We need fiscal and monetary policy to work together,” noting that “it means giving the world confidence in our ability to pay our debts.”

“We must continue our relentless fight to bring inflation down, including a strong commitment to rebuilding our public finances,” he added.

Source: cnbc

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