As China examines its economic strategy in light of a global savings high, the UK contends with a recession and cost of living crisis, with the latest Budget sparking debate on its impact ahead of the expected general election.
China’s economic strategy faces scrutiny as its high savings rate, accounting for 28% of global savings in 2023 according to the IMF, nears a critical juncture following a property boom. Experts recommend shifting towards domestic consumption and renewable energy investment to maintain economic stability. Meanwhile, the UK has entered a recession, with a continuation of the cost of living crisis as the cost of living payment scheme ends. Financial support through Universal Credit and other benefits will proceed as planned, with adjustments for public holidays. Despite some anticipation, the recent UK Budget did not introduce a 99% mortgage scheme for first-time buyers, instead focusing on modest property market boosts, leaving many aspiring homeowners seeking more substantial support. Chancellor Lloyd Webber’s Budget speech for 2024 prioritized extending financial support for families and stimulating investment across various sectors, including clean energy and the creative industries. Labour leader Sir Keir Starmer criticized the tax cuts as insufficient, highlighting that despite a cut in National Insurance, many are left worse off. The Budget, addressing the UK’s economic challenges, introduced personal tax cuts, freezes on duties, and extended support for vulnerable households, aiming at stimulating economic growth ahead of the expected general election. Despite efforts to lower taxes and promote employment, critics and the Office for Budget Responsibility (OBR) signal rising tax burdens and modest growth forecasts, setting the stage for intense political debates on economic management as the election approaches.
