British people have to get used to tough economic conditions

– International news – Tasnim news agency, SRF Switzerland in an article about the severe lack of funds in different communities and regions of England, which especially harms the poor He discussed and wrote: Closed swimming pools and streets full of potholes are among the conditions that British people should get used to. At the same time, taxes and fees are likely to increase. And this is while the social situation is currently unstable in this country.

In the continuation of this article, the author raised the question, what is the financial situation of British communities and cities? Half of Britain’s communities and cities fear bankruptcy in the next five years. In 10% of these concerns this could even happen in the next 12 months. According to a parliamentary report, there will be a £4bn shortfall in local coffers over the next two years alone. Since municipalities and cities are not allowed to borrow to cover their expenses, if there is a financial gap, they have no choice but to declare bankruptcy. Technically, they cannot go bankrupt, but the issuance of a Section 114 declaration is often described in the media as declaring a local entity bankrupt. Most municipalities and cities that issue a Section 114 proclamation adopt a new budget. In this case, all expenses (such as infrastructure projects) will be limited except for legally required services.

In the article, it is stated: Inflation helps to create a financial hole. In addition, more than half of the municipal budget comes from London. This amount has steadily declined over the past decade, and today is about ten percent lower than in 2009/2010. This is no accident: since then, the Conservative Party has been in power, committed to a small government budget and low taxes. The direct income of municipalities from corporate taxes has also been affected.

Christopher Procell, a reporter for ARD England, said: “The British economy has lost five percent of its economic growth due to Brexit and The country is in recession.” The author went on to discuss the effects of these conditions on the people and wrote: What does this mean for the population? First of all, this means that services must be saved. “For example, the operation of public swimming pools and libraries or the maintenance and maintenance of barren road infrastructure should be limited; But also preventive proposals such as youth centers. Although social spending cannot be completely eliminated, but in this situation, especially the poorer sections of the people suffer from its consequences. In many places, fees increase – for example for parking. Impending bankruptcy also forces officials to raise municipal taxes. The municipal tax system is very backward. According to the Economist, a person who owns a 3.5-bedroom flat in Blackpool pays more than the residents of Buckingham Palace. The increase of these taxes will hit the poorest people the most.

What does the British government do in this situation? London has pledged $600 million in aid to communities. “But that’s not enough,” Procell explains. Whether more money can flow or not will be determined only after financial planning. But the Conservatives have promised to cut income taxes. They want to keep this promise especially in the election year. According to Prosel, financial institutions warn in advance that there is no basis for this.

What do people say in this situation?

According to them, the government’s plans Conservatives are very adverse to cutting taxes. “According to polls, three-quarters of the British people say that taxes can remain high as long as the services provided by municipalities and cities are not reduced,” Procell said. improves in England and wrote in response: The Labor opposition party will most likely win this year’s elections. However, Keir Starmer – the leader of the Labor Party – has already played down hopes of a radical change in the situation. He said about this: “We have to live with the restrictions caused by an economy that has been severely damaged in the last 14 years. Therefore, I will not make promises that I cannot fulfill.”

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