U.K.'s Sunak Cuts Growth Forecast on Inflation Surge

The transcript discusses the economic challenges faced by the UK government, including rising interest rates and fiscal constraints. The Chancellor has made interventions to support vulnerable groups, such as reducing the fuel levy and adjusting National Insurance thresholds. Despite uncertainty, a future income tax cut is planned. The government is keeping fiscal reserves to address potential economic changes, including those related to the Ukraine situation. Investment in human and physical capital is emphasized to foster growth and navigate global economic challenges.

What immediate measure has the Chancellor taken to help individuals who drive HTV vans?

• Introduced a new tax on vehicles

• Increased National Insurance thresholds

• Reduced the levy on fuel

• Increased the amount of money people can hold

How much fiscal headroom could be wiped out by small changes, according to the OBR?

• £1 billion

• £10 billion

• £83 billion

• £1200 per person

What is the expected debt interest cost for the UK next year?

• £50 billion

• £83 billion

• £120 billion

• £100 billion

What is the Chancellor's plan for income tax in the UK in two years?

• Keep it at 20P

• Increase it to 21P

• Reduce it to 19P

• Abolish it completely

Why is there uncertainty about the funding of future tax cuts?

• Because of a lack of government planning

• Both rising interest rates and the situation in Ukraine

• Because of the situation in Ukraine

• Due to rising interest rates

What is the Chancellor's approach to dealing with economic uncertainty?

• Increasing government borrowing

• Retaining flexibility in fiscal planning

• Reducing public services

• Implementing immediate tax cuts

What is the Chancellor's strategy to stimulate economic growth?

• Increase taxes

• Reduce government spending

• Invest in human and physical capital

• Focus solely on export growth