Inflation in the UK has recently risen to its highest level in 30 years and is likely to rise further. Far-reaching price increases have been announced for April 1st.
More expensive energy and rising taxes: Living in the UK will cost significantly more money from April. There are several increases for consumers. That should further fuel inflation, which rose 5.5 percent year-on-year in February.
energy
Gas and electricity bills climbed 54 percent on Friday, or £700 a year. The costs relate to the maximum limit for energy supplies in the basic tariff, which is set by the regulator Ofgem. Ofgem justified the step with the exploded gas prices on the world market. “This is the biggest energy price shock in living memory,” said Adam Scorer, head of the charity National Energy Action. Consumer advocates fear a further, even greater increase in the fall. Millions of people across the country are at risk of energy poverty.
leisure
A visit to a pub or restaurant is also likely to be more expensive, as are hotel accommodation and tickets for concerts and shows. Because value added tax, which was initially reduced to 5 percent to combat the consequences of the pandemic for the industry and was most recently 12.5 percent, will be back to the original 20 percent from Friday. However, most of the restaurants and organizers had not passed the reduction on to their customers. Rather, they took the opportunity to settle debts and rising costs that had accumulated due to Corona. That’s why they now want to raise their prices significantly. The industry warns of a new wave of bankruptcies.
business property tax
The continuing increase in operating costs in the leisure industry is also due to the fact that a pandemic-related reduction in commercial property tax is ending. Other discounts are also running out. According to calculations by experts, companies across the country are now facing higher costs of £7.1 billion. Many retailers and restaurants are likely to pass this on to their customers.
social insurance
In a few days, on April 6th, the controversial increase in the National Insurance (NI) Tax will take effect. Employees, employers and the self-employed will then each have to pay 1.25 percent more of their income for social security. Employees will then be charged 13.25 percent on salaries up to £50,270 and 3.25 percent on anything above that. The Conservative government wants to use the extra revenue to fund the heavily strained NHS health service and health and social care. After a storm of outrage, Finance Minister Rishi Sunak announced that he would raise the threshold for NI payments in July from the current £9,880 to £12,570 in annual income.
reliefs
The government announced relief for people with low incomes. However, experts and the opposition criticized the project as completely inadequate. Finance Minister Sunak wants to give all 28 million households a £200 discount on energy bills from October. However, the money must be repaid over the next five years. The government is speculating on falling wholesale prices – market observers vehemently disagree. In addition, Sunak promised to reduce the council tax in certain regions. Local councils are set to receive a total of £144m to support vulnerable people.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
