- UN says 2 peacekeepers wounded in south Lebanon explosions
- Injury-hit Australia thrash 'embarrassing' Pakistan at Women's T20 World Cup
- Internal TikTok documents show prioritization of traffic over well-being
- Israel says fired at 'immediate threat' near UN position in Lebanon
- New US coach Pochettino hails Pulisic but worries over workload
- Brazil orders closure of 2,000 betting sites
- UK govt urged to raise pro-democracy tycoon's case with China
- Sculptor Lalanne's animal creations sell for $59 mn
- From Tesla to Trump: Behind Musk's giant leap into politics
- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- Supercharged hurricanes trigger 'perfect storm' for disinformation
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Djokovic proves staying power as he progresses to Shanghai semi-finals
- Sheffield Utd boss Wilder 'numb' after Baldock death
- Little progress at key meet ahead of COP29 climate summit
- Fans immerse themselves in Marina Abramovic's first China exhibition
- Israel says conducting review after UN peacekeepers wounded in Lebanon
- 'Party atmosphere': Skygazers treated to another aurora show
- Djokovic 'overwhelmed' after 'greatest rival' Nadal's retirement
- Zelensky in Berlin says hopes war with Russia will end next year
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Djokovic proves staying power as progresses to Shanghai semi-finals
- Hurricane Milton leaves at least 16 dead as Florida cleans up
- Britain face 'ultimate challenge' in America's Cup duel with New Zealand
- Lebanon calls for 'immediate' ceasefire in Israel-Hezbollah war
- Nihon Hidankyo: Japan's A-bomb survivors awarded Nobel
- Thunberg leads pro-Palestinian, climate protest in Milan
- Boat captain rescued clinging to cooler in Gulf of Mexico after storm Milton
- Tears, warnings after Japan atomic survivors group win Nobel
- 'Unspeakable horror': the attacks on Hiroshima and Nagasaki
- Stock markets diverge before China weekend briefing
- Christian villagers 'trapped' in south Lebanon crossfire
- Sabalenka sets up Gauff showdown in Wuhan semis
- EU questions shopping app Temu over illegal products risk
- Kim Sei-young holds lead with late birdies at LPGA Shanghai
- Toulouse welcome Dupont 'boost' as Olympic star returns to Top 14
- Japanese atomic bomb survivor group Nihon Hidankyo wins Nobel Peace Prize
- Deadly Israeli strike on Beirut likely targeted Hezbollah security chief
- Bangladesh Islamist chief backs crimes against humanity trial for ex-PM
- Everest climber's remains believed found after 100 years
- 20 Pakistan coal miners shot dead in attack
- Clashes on South China Sea, Ukraine dominate Asia summit
- Han Kang's books sell out in South Korea after Nobel win
- Zelensky meets Pope, Scholz as whirlwind Europe tour ends
- Hello Hallyu: why is South Korean culture sweeping the globe?
- UK economy rebounds in August in boost to new govt
- Voice of Japan's beloved robot cat 'Doraemon' dies
- Shanghai markets sink ahead of briefing on mixed day for Asia
UK govt woos votes with more pre-election tax cuts
Britain's beleaguered government on Wednesday announced a fresh tax cut for millions of workers as it tries to win round voters before a general election expected this year.
In a budget update, finance minister Jeremy Hunt said the government would cut national insurance -- a payrolls tax paid by employees and employers -- by two percentage points from April, matching action he took in November.
It remains to be seen whether the net fiscal giveaway, worth almost £14 billion ($18 billion) according to consultancy Capital Economics, would convince voters.
The right-wing Conservatives, led by Prime Minister Rishi Sunak, have been in power since 2010 but are badly trailing the main opposition Labour party in polls.
Analysts said the tax cut was modest, as elevated inflation forces up repayments on state borrowing, undermining the government's ability to stimulate the recession-mired economy.
Labour leader Keir Starmer slammed the budget as "the last desperate act of a party that has failed", describing tax cuts as a "Tory con" as Britons faced "the highest tax burden for 70 years".
- 'Progress made' -
"Keeping taxes down matters to Conservatives in a way it never can for Labour," Chancellor of the Exchequer Hunt told parliament in his budget address.
"Of course interest rates remain high as we bring down inflation, but because of the progress we have made... we can now help families not just with temporary cost-of-living support, but with permanent cuts in taxation."
The budget also featured plans for better value-for-money in public services, notably the cash-strapped National Health Service, and improved benefits for families with children.
There were also tax rises, with Hunt unveiling a future levy on vaping, already the subject of a major crackdown by Sunak's administration on public health grounds.
And he extended by a year, until 2029, a windfall tax on the profits of oil and gas companies, whose revenues have soared following the invasion of Ukraine by major fossil-fuels producer Russia.
The Tories also used the budget to partially steal Labour's thunder, by tightening a loophole enabling Britain's wealthiest residents to reduce their tax bill.
Labour has vowed to end the loophole that allows those with "non-dom" status, who live in Britain but whose permanent domicile is abroad, to avoid UK tax on income earned outside the country.
Hunt said the government would replace the system with a stricter process.
Sunak hopes the tax and spending announcements will help his party close the gap on Labour before the election.
But with centre-left Labour having had a clear lead in polling since October 2022 and the gap currently at about 20 points, Sunak has a mountain to climb.
"It may be that Jeremy Hunt has decided this is all he can afford to offer right now," noted Sarah Coles, head of personal finance at Hargreaves Lansdown.
She added that about 27 million people would have an average of £450 ($573) more disposable income a year from the latest cut to national insurance.
"The question will be whether it's a enough of a blockbuster tax cut to move the dial on a general election," Coles said.
- Economic recovery -
Brushing off the threat posed by recession, Hunt said that "under Conservative governments since 2010, growth has been higher than every large European economy".
This was only slightly up on a previous forecast of 0.7-percent growth.
While UK inflation is easing, a current annual rate of four percent is still double the Bank of England's target.
The central bank has lifted interest rates to a 15-year peak of 5.25 percent to dampen inflation after it soared to the highest level in more than four decades in 2022.
Inflation was expected to fall below two percent this year, according to the latest OBR forecast.
P.Costa--AMWN