Current UK supply-side policies. Flashcards
How are the government combating the low productivity in the UK?
£31 bn in a national productivity fund.
What schools are getting increased funding?
Schools that attract more students into maths and computing.
What are the recent changes in education?
Big reform from primary up to sixth-form. The planned introduction of T-Levels (a more practical equivalent of A-Levels (helps reduce youth unemployment). Subsidies/grants for adult training (helps reduce structural unemployment).
How have the government increased the supply of apprenticeships?
The apprenticeship levy-A tax medium to large firms pay to the government if they don’t spend it on apprenticeship schemes.
What are the governments’ plans for NHS funding?
NHS budget is planned to increase by £20.5bn above inflation by 2023. This will lead to a healthier and more productive workforce.
How much is being put in the national road fund between 2020-2025?
£28.8bn.
What are the two big rail projects taking part at the moment?
Crossrail (connecting east of London to the west.)
HS2 (connecting London to the north, going as far as Leeds.)
This reduces the geographical immobility of Labour in the UK.
How much is being spent on digital infrastructure and what is it being spent on?
£1bn. 5G mobile and full fibre connections. This will improve productivity, especially in remote locations.
What income tax changes have been made?
Tax-free allowances raised to £12,500. (this encouraged those out of work to join the labour force)
40% threshold now starts at £50,000. (acts as an incentive for people that are already in employment to work extra hours
What changes are being considered for corporation tax?
19% down to 17%. This may increase FDI and also allows firms that are already in the UK to invest more of their profits back into the UK.
What incentives have the UK government implemented to encourage investment?
A £1 million tax-free allowance for investment. Tax relief for small and medium enterprises who engage in R&D.
What welfare reform is currently happening?
Universal credit-(Putting all benefit payments in one)
What two changes have been made to encourage people to get into work?
Increases in the minimum wage and the tax-free allowance.
How is the government tackling the low supply of housing in the UK?
Reducing the amount of planning permission needed.
How is the government tackling the high levels of regulation in the UK?
Cutting £10bn of red tape. Lowering barriers to entry and exit which boosts competition.
