Boris Johnson announces ‘single biggest tax cut in a decade’

London, July 3 (BNA): British Prime Minister Boris Johnson and Chancellor of the Exchequer Rishi Sunak have written a joint article outlining what they call the “largest single tax cut in a decade” in a lonely review of Britain’s cost of living – the crisis of living.

Writing in The Sun on Sunday, the prime minister and chancellor said that when the national insurance threshold rises on Wednesday, it will save 30 million British workers up to 330 yen ($400) a year, German news agency dpa reported.

They added that the historic tax cut would amount to 6 billion yen in value and 2.2 million people would be out of paying “any national insurance or income tax on their earnings at all”, with “about 70 per cent of British workers” paying less. insurance.

In a rare joint opinion piece from the couple, they outline the billions the government plans to spend to cushion inflation by providing relief for council tax bills, fuel surcharges and energy costs.

The Prime Minister said there was a “huge opportunity” to fix unnecessary cost pressures for people and businesses across the UK.

Speaking at a news conference at the conclusion of the NATO summit in Madrid on Thursday, Johnson said a “very tight labor market” and a “difficult balancing of our energy mix” were adding to inflationary pressures.

Fears continue to mount that the cost of living crisis could push the UK into recession, as defined by two consecutive quarters of lower output, as skyrocketing inflation pushes households and businesses to rein in spending.

Inflation has already reached a 40-year high of 9.1% and is set to rise beyond 11% in the fall.

Bank of England Governor Andrew Bailey said on Wednesday that high inflation would hurt Britain more than any other major economy during the current energy crisis and would likely weaken production earlier and be more intense than others.

FKN