-George Osborne, UK Chancellor of the Exchequer
UK Chancellor George Osborne delivered the first budget by a majority Tory government since 1996 on Wednesday, introducing deep cuts to the UK's benefit system. The government plans to reduce public sector net borrowing to 69.5 billion pounds this year, slightly lower than the 75 billion pounds the OBR had expected. Corporation tax will be cut further, with the rate, levied on company profits, falling to 19% in 2019, and 18% in 2020. In addition to that, Osborne pledged to tackle tax evasion and ease the tax burden on workers. The new budget also included an updated growth outlook from the OBR, which projected annual expansion this year at 2.4%, 2.3% in 2016, and up to 2.4% in 2017.
Meanwhile, UK house prices continued to rise sharply in June amid undersupply of new houses. House prices increased 1.7% between May and June, sharply up from the previous month's decline of 0.1% and exceeding 200,000 pounds for the first time. On a quarterly basis, prices jumped 3.3%, an increase following two quarters of price declines, according to Halifax house price index report. Annual price inflation also climbed significantly, from 8.6% in May to 9.6% in June. At the same time, Rightmove informed last week that the average asking price had increased by a record high 3%, or 8,500 pounds, between May and June. Rightmove also said a weak supply of new housing and post-election political and economic certainty helped spur the demand and price surge
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