Political situation in the UK

British budget “smörgåsbord of tax increases”

When the British autumn budget is presented on Wednesday, you can expect a “smörgåsbord of different tax increases”. This is what Sanjay Raja, head of UK economics at Deutsche Bank, tells CNBC.

Among other things, it is likely that the country’s Chancellor of the Exchequer Rachel Reeves will freeze the income brackets – that is, the levels at which different income tax rates start to apply. With inflation and wage increases, this would mean that more workers would end up in higher tax brackets as their wages rise.

Other possible measures include higher property tax on “valuable homes”, an increased gambling tax and a fee per mile driven for electric cars. Pensions could also end up in the crosshairs of tax increases.

– It is a very unusual budget. For the first time, we know how this budget will be presented and how it will be reduced. It starts with a budget deficit of 20 billion pounds... and ends with a surplus of 20 billion instead, says Raja.

Higher minimum wage in the UK: “Should be rewarded”

The UK will raise the minimum wage by 4.1 percent to 12.71 pounds per hour, equivalent to about 163 Swedish kronor, from April next year. The British government announced this on Tuesday, Reuters reports.

This is the second time this year that the government has raised the minimum wage and according to Chancellor of the Exchequer Rachel Reeves it is necessary “so that those on low wages are properly rewarded for their hard work”.

– The cost of living remains the main problem for working people and the economy is not working well enough for those on the lowest incomes, she said in a statement.

The increase has been criticized by the British service sector, which believes that it will lead to higher prices.