The UK has declared the largest peacock budget ever


LONDON – The UK has announced its largest indebtedness level, as the coronovirus epidemic is the cause of the biggest drop in economic output for 300 years.

The British economy is forecasted by the Office for Responsibility (OBR), before growth of 5.5% in 2021, 6.6% in 2022 and 6.6%, 2.3%, 1.7% in 2022 and 1.8% in each of the following. Contracted by 11.3%. Years.

GDP (GDP) is not expected to return to pre-crisis levels by the fourth quarter of 2022, and the economy will be about 3% smaller in 2025 than in the government’s March budget.

The OBR also estimated that lending is set to reach a total of £ 394 billion ($ 526 billion) this year, 19% of GDP, its highest level in Peaktime’s history, before falling to £ 164 billion in 2021. Will be £ 105 billion in 2022. 3 for the remainder of the forecast period and the remaining £ 100 billion, 4% of GDP.

Relying on debt after removing the temporary impact of the Bank of England’s asset purchase program is projected to be 91% of GDP this year, rising steadily to 97.5% in 2025/6.

In its budget statement on Wednesday, British Finance Minister Sage Craze announced £ 280 billion in public spending to guide the country after the epidemic.

Next year, this includes £ 18 billion for testing, PPE and vaccines, £ 3 billion for the National Health Service (NHS) recovery, £ 2 billion on transport, £ 3 billion to local councils and £ 250 million to address Will be Homeless. Another £ 2.6 billion will be given to the developed administration in Scotland, Wales and Northern Ireland as an expenditure of £ 55 billion in 2021.

“The higher these costs, the higher the costs of inaction, but the situation is not clear in the medium term,” Sunak told the House of Commons on Wednesday.

“We can only act as we have because we came into this crisis with strong public finances, and we have a responsibility, once the economy improves, to return to a sustainable fiscal position.”

Prior to the release, a spokesman for Prime Minister Boris Johnson had told reporters that the OBR forecasts would be “daring”, but that the “cost would be too high” government had not taken its chosen course of action to deal with the epidemic.

According to data compiled by Johns Hopkins University, as of Wednesday morning, the UK has recorded 1.5 million deaths of Kovid-19 and 55,935 people. England is currently in lockdown until 2 December in a bid to stem a second wave of infection, after which a nationwide tiering system will be restarted.

Preliminary data from the Office for National Statistics (ONS) earlier this month showed that the UK economy grew 15.5% in the third quarter, its fastest quarterly expansion since records began, in the past. After recording a record 19.8% drop in the quarter.

However, the activity is expected to take another hit by the end of the year. According to ONS, Gross Domestic Product (GDP) is 9.7% below the level seen at the end of 2019.

In an effort to avoid a sudden spike in unemployment, the government has announced an extension of its Ferrari plan by the end of March.

The craze referred to the government’s economic response in its statement, stating that the plan “supported protected jobs, income and helped businesses stay away.”

However, the OBR has estimated that unemployment will rise to a peak of 7.5% or 2.6 million people in the second quarter of 2021, before falling to 4.4% by the end of 2024.

The craze announced another £ 3 billion for the Department of Work and Pensions (DWP) on Wednesday, a “three-year restart program” aimed at helping more than 1 million people who spend more than a year Are unemployed.

.

Leave a Reply