Healthcare obviously, which will have extraordinary loans of 12 billion pounds a year, already announced by Prime Minister Boris Johnson, financed by the increase in social security contributions, and a 6 billion fund for investments in infrastructure and technology to reduce the lists of waiting in hospitals that have lengthened during the pandemic.
More development aid
Sunak also announced that international development aid will return to 0.7% of GDP in 2024, thus responding to the chorus of criticism both internally and from abroad for the decision to reduce aid to 0.5% in a period of crisis. particularly acute due to the pandemic. A series of tax cuts of various kinds, from shipping to sparkling wines such as prosecco, have been announced and attributed by Sunak to the “freedom regained now that we have left the European Union”.
Relief for hotels and restaurants
Domestic flights will be taxed less than international flights, both for environmental reasons and to encourage travel to the UK. shops, pubs, restaurants, theaters, cinemas and gyms to recover from long periods of lockdown.
Low cost of debt
However, the phase of public aid rain due to the health emergency must end, said Sunak: «Due to the extraordinary circumstances last year the state represented half of the economy and I don’t like this. We don’t want to live in a country where the answer to every problem is to turn to the government and taxpayers’ money. “So, he said,” my goal is to reduce taxes as soon as possible, rewarding work and innovation and creativity . This is my mission ». Sunak, an avowed admirer of Margaret Thatcher whose portrait he hung in his office, has made no secret of his desire to reduce debt and get back on track. Public debt soared during the pandemic, but the cost of debt remains low, at around 6% of tax revenues, thanks to low interest rates. For this reason, the government can continue to invest in innovation, infrastructure and research and development to relaunch the economy.