UK unveils cost of living budget as mass strikes hit the country

Britain's finance minister unveils a cost of living budget on Wednesday as the government seeks to rein in public spending in the face of a new wave of wage strikes.

Chancellor of the Exchequer Jeremy Hunt presents his tax and spending plan to Parliament from 12:30 GMT, as teachers, young doctors, civil servants, BBC journalists and Tube drivers of London stage the last day of mass walkouts.< /p>

Public and private sector workers show few signs of ending the strike that began last year when soaring inflation reduced the value of wages.

Ahead of the budget, Hunt flagged increased funding for childcare and proposals to encourage Britons over 50 to join the workforce.

The government should also confirm its plans to encourage those who have dropped out of the labor market to return to work.

It is seeking to fill 1.1 million vacancies, partly due to a shortage of European workers following Brexit and a record number of people classified as long-term sick.

Reports add that Hunt could allow workers to invest more tax-free money in their private pensions.

"Reports of senior doctors retiring early due to the impact of tax breaks on pensions...have undoubtedly been of particular concern to the government given the strains already on the health care system. health in the wake of the pandemic," noted Tom Selby, chief retirement policy officer at AJ Bell.

“However, the lifetime allowance and annual allowance apply to all types of private pensions and this announcement would therefore increase pension savings limits for millions of Britons.”

In neighboring France, the Senate voted over the weekend to approve a deeply unpopular reform of the country's pension system.

The headline measure is an increase in the minimum retirement age from 64 to 64, seen by many as unfair to people who started working young.

Britain's retirement age of 66 is set to rise before the end of the decade, meaning a longer wait for a state pension. Private pensions are available at an earlier age.

In addition to pay concerns, health care workers are protesting overwork caused by labor shortages, doctors below consultant level among the hundreds of thousands expected to strike on Wednesday.

Prime Minister Rishi Sunak's spokesman said the Conservative government wanted to work with unions to secure "fair and reasonable" wage increases.

"But we made it clear that we wanted to see the strike end before we did."

Thousands of public and private sector workers have been on strike for months as pay rises fail to keep pace with inflation in the UK, which remains in double digits.

As millions of Britons face a cost of living crisis, the government has subsidized soaring energy bills, but some of that support is set to end next month.

Wednesday's budget could offer further help, economists say, after the government posted a bigger-than-expected surplus in January and the country avoided recession last year.

As is customary with recent UK budgets, the government has already followed through on a number of announcements which should be included in Hunt's statement.

Britain on Monday detailed detailed plans to boost military and security spending to meet the “historic challenge” posed by China while countering Russia.

It plans to spend a further £5bn ($6.1bn) on defense over the next two years, focusing on nuclear resilience and replenishing depleted munitions stocks.

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On Friday, Britain announced a 20-year plan to capture carbon and commit to nuclear power as it boosts energy supplies and aims for a net-zero economy by the middle of the century.

Hunt said the move would help avoid a repeat of the spike in energy bills since major oil and gas producer Russia invaded Ukraine, which tightened global supplies.

AFP