Sunak’s Austerity Measures Tested as UK’s Economy Enters Recession: A Commentary from World English News

by | May 6, 2023 | Recession News | 44 comments




UK government on Thursday unveiled an austerity budget with £55 billion ($65 billion) of tax hikes and spending cuts despite confirming its economy was in recession.

#UK #Budget #WION

About Channel:

WION The World is One News, examines global issues with in-depth analysis. We provide much more than the news of the day. Our aim to empower people to explore their world. With our Global headquarters in New Delhi, we bring you news on the hour, by the hour. We deliver information that is not biased. We are journalists who are neutral to the core and non-partisan when it comes to the politics of the world. People are tired of biased reportage and we stand for a globalised united world. So for us the World is truly One.

Please keep discussions on this channel clean and respectful and refrain from using racist or sexist slurs as well as personal insults.

Subscribe to our channel at
Check out our website:
Connect with us on our social media handles:
Facebook:
Twitter:

Follow us on Google News for latest updates

Zee News:-
Zee Bussiness:-
DNA India:-
WION:
Zee News Apps : …(read more)


BREAKING: Recession News

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing


The UK economy has officially entered a recession, with a GDP contraction of 20.4% in the second quarter of 2020. This is the largest quarterly contraction on record and marks the first recession for the UK since the 2008 financial crisis. Chancellor Rishi Sunak has implemented several austerity measures in an attempt to offset the economic damage caused by the COVID-19 pandemic. Will these measures work?

See also  Get ready for an increase in your taxes!

Sunak’s measures include a £30 billion stimulus package in July, which included a temporary cut in VAT from 20% to 5% for the hospitality and tourism industries. He has also launched a job retention scheme to subsidize wages for workers who were furloughed during the pandemic. Additionally, Sunak has announced a temporary stamp duty holiday to encourage homebuyers and support the housing market.

However, some analysts are skeptical that these measures will be enough to jumpstart the economy. The VAT cut, for example, has been criticized for being potentially ineffective, as businesses may not pass the savings onto consumers. The job retention scheme is set to end in October, which could lead to an influx of unemployment and reduced consumer spending. Moreover, the stamp duty holiday might not be enough to boost the struggling housing market, as many people are still hesitant to purchase a home during uncertain economic times.

Austerity measures have historically been controversial, as they often lead to cuts in public spending and social services. Sunak has not yet outlined any concrete plans for austerity measures, but he has acknowledged the possibility of future tax hikes or spending cuts to offset the costs of the pandemic. This approach has drawn criticism from some who argue that austerity will only worsen the economic downturn by reducing consumer spending and demand.

In summary, while Sunak’s measures have provided some much-needed relief in the short-term, it remains to be seen whether they will be enough to fully revive the economy. The uncertainty around future austerity measures also adds to the stress and uncertainty for UK citizens and businesses. Ultimately, the success of the UK’s economic recovery will depend on the global response to the pandemic, as well as the effectiveness of domestic policies in stimulating demand and growth.

See also  Is the Economy Already in a Recession? 📉💼
Gold IRA Advantages for Baby Boomers Nearing Retirement
You May Also Like

44 Comments

  1. Gamble

    "Oh no my roof is leaking! Oh well, I'm on a tight budget, perhaps if I ignore the problem it will fix itself and my house will appreciate in value!"

  2. Brian Lowe

    There is money for ukraine

  3. oliviaelle

    "To be British is to be compassionate "
    Faak yoo

  4. Wilson Chiu

    2:02 To be British is to be compasionate… the only ones naive enough to believe that are themselves.

  5. Marcel Brouwer

    growth they do not understand it we need be stable not growth

  6. jamboreetime

    Wow Austerity is a common word in England. Tories OUT!!!!!

  7. Inmobiliaria Gat

    Meanwhile, UK, Is financing the war in UKRANIA, since the coward anonimaty ‼️

  8. Ashok Menon

    Richly deserved.

  9. johnnyboyvan

    They will make a fortune once they start rebuilding Ukraine. We know the truth!!

  10. colleen Odegaard

    Recession is pushed by over-spending by Liz and her crew, just like Uncle Boris! It was not like that during the May regime, every sector of the economy is starting to falter, and the population is having to cope with the highest cost of living in nearly four decades. My question is where should we put our investment money now to better prepare for the future and a liquidity crisis? I have £100k to grow

  11. Suki Paul

    THE UK LOOTED INVADED KILLED STOLE AND DESTROYED QTR OF THE WORLD and now they are feezing to death……but sadly its the working class who suffer the most not rich white elite

  12. MICHAEL Raju

    He is very much busy to help Ukraine instead of UK….

  13. Loh Cheng Fatt

    Instead of increasing tax , how about increasing business and economy .??? Higher tax on reduced amount is worthless !!!! Better if same tax on higher taxable amount.

  14. Varun H

    To be British is to be compassionate? Not too sure about that.

  15. D

    What recession? Britain is one of the richest nations in the world?

  16. Andrew Morris

    He is really protecting the vulnerable by increasing tax and cutting public spending. How about all those billionaires hand over 20% of their wealth.

  17. Kishan Kumar

    Guess, all that British has looted from the world is already spent … and exhausted

  18. Cuddles Singh

    Rishi is no harry pather ! He got no wand 2 wave & magically make all the u.k truble disappear. U.k since thatcher has been sliding down bec. 1nce the milk & honey from the colonies esp. The jewel aka india – britains wealth like spain , portugual all fizzled & dried up. Now after 500 years brits have to convince others to trade with it. That is sunak's challenge & the step for the fta with india worth $ 24 billion is a step in the right direction. I expect a lot of britons to migrate to india for the next 5 years to work in india for huge indian multinationals as india is the gateway to the new ' commonwealth'.

  19. Movie-talk-man

    Stop giving money to world
    Stop paying for illegal imagrints for a hotel and food and medical supplies
    Stop paying for fat people to eat
    Tax the rich more. Tons of stuff you can do

  20. Sandeep Halyal

    Indeed, they compassionately engulfed the whole world! And lived like it all exists to serve them!

  21. silent watcher

    Sunak can't save UK economy.

  22. umang rastogi

    Atleast British government has accepted that there is recession here in India no politician talks about it always fooling the public

  23. hon liong

    About the duration of the recession. It won't be till 2024, which is just 2 years, but multiply it by at least 3 times. And I am being generous.

    The UK has way too many factors that are against it. The loss of the colonies was just the beginning of it. But the EU had provide a sizable relief. But being British means you don't bow to anyone, well, with one exception, America. Proud to be British means it chose to bugger off from the EU. Now the very BREXIT-eer himself, is spinning furiously that the dire situation the UK is facing has nothing to do with BREXIT. Well, at least he is sinking with the ship, still maintaining that he had set the right course for that sinking ship.

    Now Sunak is desperately looking for lifeboats, and he thought he found a big one in the Asian region. Sure, the Asia economy is vast, but what the UK is able to sell isn't exactly what Asians wanted or needed.

  24. Trololololol

    What more can you expect from a bunch of losers that can't even brush properly…

  25. Alex

    Bullshit! British have full of democracy their democracy credit is still increasing fast. Even with high inflation and energy shortage, British live happily with their off-charted democracy credits!

  26. Bhuvana mani

    Frm most of comments I gather there is but little that other countries care about the situation in uk … would not that give out a msg that for a nation to flourish it is alright to plunder others??? Think we should stop making merry on others' probs… what goes around comes back for sure.

  27. AstroTerra

    Disgusting evil 'things' because they not even human

  28. Sun R

    Lord Desai is making some strong analytical assessment with his extensive knowledge of the British economy. 10 years recession in Britain will impact the economy towards a very difficult situation. We will see fundamental structural changes.

  29. Firoze Bukht

    2- Stock market should run within the standard deviations 25- 30 percent or 15-25 percent.

  30. Firoze Bukht

    1- Banks can be protected from bankruptcy by lending money from the govt. at the lowest interest.

  31. Erla Andersom

    Jesus is coming! These are the signs of the time. Time is running out! Its going to get worst. Give your hearts to Julesus today.

  32. Firoze Bukht

    Recession is a game of big people's gambling in stock market and banks the loss bears only general public not big elites.

  33. eu jin

    sack sunat !

  34. Good Phone

    I don't understand what is the mechanism that increase inflation, now it is not a solid thing that feeds itself, it's man who increase inflation , so what are governments to do if they are not able to intervene in these mechanisms??????? !!!

  35. Good Phone

    You have to give money to the people don't take it.

  36. Good Phone

    Frankly I don't undersrant these moves , you increase the taxes , when the people face high inflation????!!

  37. Ricky Julian

    Hurry up and legalise that cannabis..
    It's worth a few hundred million pounds a year in taxes and people that get high today will get high tomorrow. Funnily enough it will be as though nothing has changed but millions in taxes will be generated along with the thousands of legitimate job..

    It worked in the US and it will work here…

  38. Ht Leong

    what will happen if China happen to sell off a few tens of millions of UK Bond?

U.S. National Debt

The current U.S. national debt:
$34,552,930,923,742

Source

ben stein recessions & depressions

Retirement Age Calculator

  Original Size