The government is building on this by making a further cut worth over £10 billion a year for workers across the UK. That is why the government cut NICs for 29 million workers at Autumn Statement 2023. Reducing employee and self-employed National Insurance is the best way to target working people, supporting growth and making the tax system fairer. If you get your income from other sources you only pay income tax. At the moment, if you are of working age and get your income from having a job, you pay both National Insurance contributions (NICs) and income tax. The tax system should be fair, simple, and reward hard work. The economy is now beginning to turn a corner and because the government is sticking to the plan it can now make further tax cuts for working people, boosting growth whilst keeping the public finances on a sustainable path. Total borrowing from 2023-24 to 2028-29 is forecast to be £0.3 billion lower than at Autumn Statement 2023. This would be the lowest level of borrowing as a share of GDP since 2001-02. Borrowing is forecast to fall in every year, reaching £39.4 billion or 1.2% of GDP by 2028-29. The wider measure of headline debt falls in every year from 2024-25 to reach 94.3% in 2028-29. The government is on track to meet both its debt and borrowing fiscal rules, with underlying debt falling as a share of GDP to 92.9% in 2028-29. Growth is now forecast to pick up from the first half of 2024 and the IMF is forecasting that the UK will have the third fastest cumulative growth in the G7 over the 2024-2028 period. GDP grew by 0.1% in 2023 and the unemployment rate has remained low by historical standards at 3.8% in Q4 2023, below the OBR’s November 2022 forecast of 4.6%. The UK economy, supported by government policy, has proved much more resilient. Similarly, the Bank of England forecast a contraction of 1.5% in December 2022. In November 2022, the OBR forecast a year-long recession and for the economy to contract by 1.4% in 2023. ![]() In the latest data, people’s real incomes were around £1,100 higher than the OBR expected in their March 2023 forecast. The OBR now expects living standards, as measured by real household disposable income (RHDI) per person, to grow by 0.8% in 2023-24 and continue to grow in each year of the forecast. The OBR forecasts inflation to fall to its 2% target in Q2 2024, a year earlier than in their November 2023 forecast.Īs a result of falling inflation, real wages are rising. Inflation has more than halved from its recent peak and the government is continuing to support the Bank of England, with policy decisions at this event directly reducing inflation in 2024-25. At Spring Budget the government is delivering on these priorities: inflation has fallen, growth has been more resilient than expected, and debt is forecast to fall. The last few years have been tough for the UK economy, which has faced unprecedented shocks from the legacy of the COVID-19 pandemic, an energy price spike driven by Putin’s illegal invasion of Ukraine, and globally high inflation.Īt the beginning of 2023 the Prime Minister set out five priorities, three of which were economic: to halve inflation, grow the economy and get debt falling. Ordered by the House of Commons to be printed 6 March 2024.Return to an order of the House of Commons dated 6 March 2024.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |