Official Economic Statistics Prove the Opposite of what Boris Johnson Said
Official statistics show that, as a result of the coronavirus outbreak, the UK economy has entered a recession for the first time in 11 years. This is the first time since the financial crisis of 2009 that UK’s economic growth has slowed down to this extent. According to official statistics, the highest rate of job losses in 11 years has been recorded in the UK. A recent report shows that in the second quarter of this year, the number of employees in this country has dropped by 220,000. Government officials blamed the unprecedented economic downturn on a massive closure of non-essential businesses between April and June, as the coronavirus crisis escalated. Accordingly, middle-aged employees, those under the age of 24, as well as those who worked in casual and non-specialist occupations, have been most affected.
Wave of Criticism Directed at the Government Over the New Budget
The announcement of the British government’s revenue and expenditure plan for the next 12 months has sparked a new wave of criticism in the country. The budget, affected by the pandemic and Brexit, has caused major damage to the economy, according to the British chancellor, Rishi Sunak. The chancellor, stating that the economy had shrunk by 10%, said that the situation was unprecedented in the last 300 years. Sunak said 700,000 people lost their jobs in the pandemic and government debt to contain it reached 407 billion pounds, the highest during peacetime. The Resolution Foundation has assessed the government’s economic and financial policies as the leading cause of declining living standards, continuing even years after the pandemic, and warned of the consequences, especially for poorer households whose government aid has fallen to its lowest levels since the 1990s.
Raising Taxes: Boris Johnson’s Strategy to Offset High Government Debt
The chancellor presented the 2021 budget in which corporate tax increases are seen as a way to compensate for the government’s huge debt due to the pandemic. Speaking in Parliament, Rishi Sunak announced the government’s plan to support jobs and businesses in the country, but warned that measures must be taken to deal with rising government debt. He explained that in the new government bill, corporate taxes will increase to 25 percent from 2023. Sunak pointed out that the coronavirus crisis has caused severe damages to the country’s economy and it will take a long time to get out of this situation. He said the government’s programme to provide financial support for forced leave for employees would continue until September. Sunak presented an ambitious and far-fetched view of the British economy, expressing hope that it will grow by 4% this year and 7.3% next year. Sunak says the country’s economy has been hit by the pandemic and many families and businesses are currently going through difficult times. He stated that the government could not provide financial support for all businesses and companies. The independent Office for Budget Responsibility (OBR) estimates that this figure could reach £393.5bn by the end of the financial year in March. This would be the highest amount of aid in any year since the Second World War.
The Pandemic Hit the British Economy Harder than Any Other EU Country
The economic situation in the UK due to the pandemic and London’s withdrawal from the EU is not well defined. Although all European countries are in an economic crisis caused by the coronavirus, statistics and polls show that the UK is in the worst position in all respects compared to all OECD countries. Research in the UK shows that the British economy suffered the most damages last year in nearly three centuries due to the constraints of the pandemic. The latest data from the Office for National Statistics (ONS) shows that the country’s economic growth in 2020 fell by 9.9%. This decline is the product of three rounds of nationwide quarantines and widespread business closures. Findings by the Financial Conduct Authority (FCA) show that the pandemic has placed heavy financial and psychological strains on more than half of the adult population over the past year. According to the report, 11% of the British adult population, who can hardly afford to repay, have little savings and said that they had to go to the food bank out of necessity, and 16% thought about taking out more loans.
Experts Say the 2021 Budget Will Increase Government Debt Every Day
The new British Budget was unveiled with more than £ 400 billion in government debt, with experts saying the policy was set to “spend now, pay back later”. The British chancellor, Richie Sunak, unveiled the government’s budget for the new fiscal year in Parliament, The Office for Budget Responsibility (OBR) expects that the pandemic will cause lasting damages to the economy. Its best estimate, as shown in its central forecast, is that economic output will remain 3% below its pre-virus levels in the long term. Put another way, it expects “scarring” of 3%.
UK’s withdrawal from the EU and the government’s lack of planning to manage its consequences have affected a large part of the British economy due to the ill-considered actions of Boris Johnson. With the government’s unveiling of next year’s Budget, it became clear that it had no choice but to raise taxes and put pressure on the people to repay its debts. The move comes as many British businesses and industries have been severely damaged and many have had to close down due to the spread of the coronavirus and the imposition of three periods of quarantine restrictions. A new wave of criticism directed at the government’s lack of planning for economic growth has reduced support for Boris Johnson among the people, with many calling for the resignation of the prime minister.
