UK Set To Hike Taxes In New Budget

The United Kingdom will on Thursday hike taxes and slash public spending in a government budget despite millions suffering a cost-of-living crisis in an economy facing recession.

Finance minister Jeremy Hunt will present his crucial budget in Parliament, alongside official economic and inflation forecasts – with recent data signaling a grim outlook.

Hunt is expected to unveil fiscal consolidation totaling between 50 billion and 60 billion pounds (between $58.7 billion and $70.5 billion), media reports suggest.

Hunt said in a statement; "We're all going to be paying a bit more tax, I'm afraid. We will be asking everyone for sacrifices.”

Britain's economy shrank in the third quarter as inflation soars, recent data showed, likely confirming it is already in a recession.

The Bank of England (BoE) has said the U.K. economy would also contract in the current final quarter, meaning the economy was in a recession, which it warned could last until mid-2024.

The Daily Sabah added that economic storm clouds darkened even further on Tuesday as official data showed unemployment in the U.K. edged up to 3.6%.

The unemployment rate increased in the three months to the end of September from 3.5% in the three months to the end of August, the British Office for National Statistics (ONS) said in a statement.

At 3.6%, it was around the lowest level since 1974. Inflation data is also due for release on Wednesday.