A group of economists have warned that despite record increases in taxes at October’s budget, the Treasury is likely to raise taxes even further this year, potentially undermining economic growth. The UK is expected to outperform France and Germany in 2025, but the previously announced tax rises could hinder the economy’s recovery. The chancellor’s record tax rises, including an increase in employers’ national insurance contributions, have contributed to a gloomy economic outlook, with firms anticipating reduced output and hiring, leading to concerns of a struggling economy.
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Germany to boost defence spending at faster rate than France or UK
Germany plans to increase its defense spending by over 66% by 2029, reaching €162 billion, as Chancellor Friedrich Merz responds to threats from Russia and the U.S. This includes annual military aid to Ukraine and aims to elevate defense spending to about 3.5% of GDP, surpassing France and the UK, while also implementing significant infrastructure investments and tax breaks to stimulate growth. Need More Context? 🔎
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