Connect with us

International

UK public spending on Covid-19 crisis will be’unsustainable’ with tax increases, economists warn

Avatar

Published

on


After the coronavirus crisis, public spending in the UK will eventually become unsustainable and taxes will need to be raised over the next few years to balance books, warned leading economists.

Paul Johnson, director of the Finance Institute think tank, said there is no need to take action immediately, but the government should set a clear path for how public finances will recover.

i Political newsletter blocked out noise.

Ahead of the announcement of Prime Minister Rishi Sunaksone’s annual expenditure review on Wednesday, MrJohnson released a terrifying picture of UK finances.

Deep recession

In an interview with the BBC’s Andrew Marr, he said that in the first half of this year, the United States experienced the largest decline in economic output ever recorded and faced one of the most feared recessions in history.

Johnson said the UK will borrow about 350 billion won this year. This, as a percentage of national income, is more than at any point except World War I and World War II.

We thought of what we saw during the financial crisis, but this is much bigger, he said.

Financial cuts

He said that the government is right to support the economy now, adding: If we continue with the spending and tax levels currently gained in small economies in the medium term, not only will borrowings be high, but debt will increase and at some point become unsustainable.

So in the end, I had to put it back and some sort of financial cut. Perhaps it means raising taxes someday.

Prime Minister Boris Johnson leaves 10th place (Photo: Getty)

MrJohnson said the government would not have to do much this year and perhaps next year.

Perhaps you were looking into the mid-2020s, but to do that, he said, you need a clear path.

The big judgment and the incredibly tough judgment is when to take that action. In the short run, Johnson said it could be exactly the wrong sign to give people the impression that this will happen in the months ahead or perhaps next year.

Brexit impact

Regarding Brexit, he said the end of the transition period, whether trade negotiations with the EU or not, could have a negative impact on UK growth.

Even the best deal to get at the moment, he said, would have been considered one of the hardest Brexit imaginable three or four years ago when we started seeing this.

That kind of trading will, at best, prevent the economy from growing faster than other methods.

He added: It is worth saying that there is uncertainty about what the impact will be, especially in the short term, especially in the context of the coronavirus.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]