Triple lock pension under Quasi Quarteng may come back with state pots to see massive hikes. UK | news IG News

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On Friday, the mini budget of Quasi Quarteng saw the return of the triple-lock pension. Experts have warned that rolling back the controversial policy could lead to the “largest increase in state pensions in decades”.

Joe Nellis, professor of global economy at the Cranfield School of Management, told Express.co.uk that should the triple-lockdown be reintroduced, the “largest increase in state pensions in decades” would be seen.

He said: “The mini-budget is likely to confirm that the triple lock for pensions will be reintroduced, meaning that in April, the state pension will increase by almost 10 per cent – the highest in state pensions in decades. big increase.

“While this is good news for pensioners, regeneration will come after a tough winter with record high energy costs.

“This uptick may upset the workers. With the wage rate expected to reach 8 per cent in the private sector and 3 per cent in the public sector, workers are losing out and we may see the strike continue in 2023.”

In June it was reported that the Treasury plans to return to the triple lock system, by which state pensions are raised annually in line with inflation, average earnings or a flat rate of 2.5 percent, whichever is highest.

It was temporarily abolished this year due to distorted income figures as a result of COVID-19, with pensioners left with 3.1 per cent under the double lock system.

However, Prime Minister Liz Truss has previously expressed her support for a return to the policy for the remainder of parliament.

The state pension hike will be decided from the September CPI figure, which expires on October 19.

Read more: Mini-Budget LIVE: Britons prepare for tax bonfire as preparation for cuts by truss

Mr Quarteng has confirmed ahead of his budget that the national insurance hike brought in by Boris Johnson’s government in April will be reversed in November.

The Treasury said the increase ax on 6 November would cut the tax bills of nearly one million firms by an average of £10,000.

Mr. Quarteng is also set to do away with the fixed increase in corporation tax, reduce stamp duty, cap city bonuses and create a low-tax investment zone.

Ms Truss also said Friday’s mini-budget would “drive more businesses in the UK” and “encourage more people to go to work”.

According to a transcript provided by Downing Street of a trade roundtable discussion at the United Nations General Assembly in New York, the prime minister said: “While this is just the beginning, our long-term plan is to simplify UK taxes and make us . A better place to invest and be brashly pro-business.”

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Pro. Joe also told Express.co.uk that the financial “giveaway” would provide a massive financial incentive, but that many unwanted records could be broken when it comes to borrowing and inflation.

He added: “The mini-budget would take the national debt to more than 100 percent of GDP. While there are hundreds of billions of pounds of significant aid being made available, it is funded with borrowings that could put us in a precarious position.” of years to come.

“The government is relying on growth to pay it back, but with unemployment low, the UK’s ability to facilitate additional economic growth is limited.

“It will take years to address, but if growth doesn’t hold up, we will face more austerity and higher taxes later.”

Meanwhile, FairFuelUK, the public affairs campaign against fuel tariffs and VAT, has said the chancellor’s mini budget “must make major cuts in fuel tariffs to reduce inflation”.

FairFuelUK founder Howard Cox told Express.co.uk: “Inflation dropped 0.3 percent last month. The reason for this welcome drop, despite food prices still climbing, was almost entirely pumped up in August. The 10p drop in prices is due.

“This crisis on petrol and diesel prices has had the same impact on the economy as it has on energy bills. Recently, businesses, logistics, inflation, economic growth and low-income households have suffered heavy losses due to pump prices. .

“Cutting the cost of transport will attract manufacturers and other businesses to operate from the UK as well. It really is a no brainer.

“The timely fall in August inflation should give Quasi the reassurance he needs to cut fuel tariffs by 20p a liter, as most of Europe has already done.

“Making a big cut in fuel duty will bring down inflation and this can be done by using the additional billions in VAT that the government has received recently from very high pump prices.

“But the 20 paise cut would still leave the UK with the highest motoring levy in the world. However, it would ease the heavy burden on families and businesses and boost tax revenues to the exchequer by boosting the economy. As a result Come.”

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