monetary policy application

Question 1

key tax increases UK

Answer 1

corporation tax is expected to increase to 25% for companies with profits above £250,000

National Insurance:
The rate of social security contributions paid by employers will increase to 15%

The capital gains tax rate applicable to carried interest for the fund management industry will increase to 32% from April 2025

Question 2

cuts in welfare UK

Answer 2

• £5bn cut to spending on health-related benefits
• £1bn investment in back-to-work programmes
• the health element of UC will be cut by £47 to £50 per week for new claimants, and frozen for existing recipients — with young people under 22 excluded entirely, subject to consultation.