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UK inflation hits 30-year high as government set to continue with tax hikes

Britain has seen its highest level of annual inflation in 30 years, while the country’s government appears to remain ready to go ahead with major tax hikes.

The UK’s annual inflation rate hit its highest level in 30 years in February, rising to 6.2%.

According to the Office for National Statistics (ONS), this is the highest level seen since 1992, when inflation hit a previous high of 5.5% in January.

In a report on Wednesday, the ONS noted that record inflation was largely due to rising costs of furniture, household items and “leisure and culture”, although rising costs of food and fuel was also mentioned throughout the report.

“Inflation rose sharply in February as prices rose for a wide range of goods and services, for products as diverse as food, toys and games,” noted Grant Fitzner, ONS Chief Economist, on rising inflation.

“Clothing and footwear saw a return to traditional February price increases after last year’s dips when many stores were closed,” he continued. “The price of goods leaving UK factories has also risen significantly and is now at its highest level in 14 years.”

Driven in part by the ongoing war in Ukraine, British citizens – like many around the world – are facing steep increases in the cost of living, mainly due to issues related to energy and food insecurity.

For example, although they have fallen in recent days, the price of petrol and diesel remains extremely high, with consumers still having to pay around £1.79 per liter for diesel, or around $8.95 per gallon. .

However, despite the mammoth prize money, the UK government seems reluctant to help, with the country’s Chancellor of the Exchequer, Rishi Sunak, apparently refusing to back down on promised tax hikes that are set to imminently hit the purse strings of the UK. general public, although reports indicate that Sunak could announce measures later today to reduce the financial pressure on British households.

This may include a slight fuel tax cut, although it remains to be seen how effective such a measure will be in addressing fuel insecurity.

However, what does not appear to be changing is the Chancellor’s planned increase in Britain’s national payroll tax, which he announced alongside British Prime Minister Boris Johnson earlier in the year.

While Sky News reports that there could be an increase in the threshold for those eligible to pay the levy, its increase will represent a significant loss of funds for many families already facing one of the worst inflations they have ever had. never seen.

“We must go ahead with the health and care tax [payroll tax]“, previously wrote the Chancellor. “It’s progressive: the burden falls most on those who can most afford it. Every penny of that £39billion will go towards crucial goals – including nine million more checks, scans and operations, and 50,000 more nurses, as well as strengthening social care.




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