uk stuff

Question 1

uk direct tax changes in 2020

Answer 1

• cut in corporation tax , from 28% in 2007 to 17% in 2020
• increased income tax allowance - personal allowance increased from 12,500
  
  • basic rate limit increased from 3,000 to 50,000

Question 2

Uk welfare reforms with supply side aims

Answer 2

• new enterprise allowance with mentoring, support and funding for benefit claimants to get their business ideas of the ground (2019)
• From April 2019, Working parents and disabled people can earn an extra £1000 a year before their universal credit starts to reduce

Question 3

education reforms

Answer 3

• Uk spends ≈ 3.5 - 4% of GDP on education , more than canada, less than norway
• introduction of T level qualifications- equivalent to 3 alevels - vocational training - improves quality of labour
• tax free childcare- TFC offers to cover 20% of childcare costs, up to a max value of £2000 a yr per child, for children under 12
• priority school’s building program

Question 4

other supply side policies for the labour market in 2019

Answer 4

• in 2019, NNW increased to £8.21 an hr and higher non wage for younger workers
• changes to migration policy

Question 5

supply side policies in the energy sector

Answer 5

• infrastructure spending - eg London power tunnels to provide the next generation of power and to keep people in the capital connected to electricity spots
• relaxation of planning restrictions for onshore wind farms
• interest free loans for purchase of renewable energy equipment
• minimum carbon price floor for emissions trading
• 190 billion investment in infrastructure by the UK in 2018/2019