Britain’s Chancellor of the Exchequer introduced a budget package of tax increases and spending cuts to stem the economy’s stagnation.
Jeremy Hunt promised that the government would protect essential public services. At the same time, he also said that hard times lie ahead.
“Families, retirees, businesses, teachers, nurses and many others are worried about their future, so today we are presenting a plan to tackle the cost of living, the crisis and rebuild the economy. Stability, growth and public services will be the priority,” the finance minister said in the House of Commons in the London Parliament.
Most European economies suffer from high inflation, but Britain’s situation has also worsened due to Brexit.
“Most countries have a trade channel through which trading partners can mitigate inflationary pressures when they arise. The UK is in bigger problems due to Brexit,” Ethan Ilzetzky, an analyst at the Center for Economic Policy Research (CERP), told Euronews.
The unprecedented increase in energy costs has hit the island nation hard, with the inflation rate exceeding 11%. The current tough budget project is in stark contrast to the previous government’s tax cut programme, which lasted only 45 days, undermining international markets’ confidence in the British economy.
