Britain plans to invest almost £ 7 billion in transport

Under the budget for next year, Britain plans to invest almost £ 7 billion (€ 8.3 billion) in transport outside London to reduce economic inequality. The finance ministry said on Saturday. Finance chief Rishi Sunak will present a transport initiative during the autumn review of budget and spending next week on Wednesday. Prime Minister Boris Johnson's so-called regional disparities program is seen as necessary to keep voters in the former strongholds of the main opposition Labor Party, who supported the Conservatives in the 2019 election. Investments are thus seen as a reward for that support. Minister Sunak is expected to stick to plans to recover finances after the extraordinary spending of the new coronavirus pandemic during the presentation of the budget on Wednesday, despite the better-than-expected state of the economy offering him some room for maneuver. United Kingdom is recovering from the COVID-19 crisis faster than expected. Given that its economy is doing better, the Office for Budget Responsibility (OBR) is likely to increase its growth outlook for the current year, lower its unemployment forecast and also lower its loans due to higher tax revenues. However, experts predict that Finance Minister Sunak will still not ease fiscal restraint as the economic recovery begins to slow and soaring inflation means higher interest payments on the United Kingdom's large debt. Following the suspension of fiscal rules at the beginning of the pandemic, it is assumed that it plans to introduce new ones. Sunak's September decision to finance emergency spending on health and social affairs solely by raising taxes suggests that reducing the deficit is still his priority. Analysts estimate that the OBR will increase its forecast for Britain's gross domestic product (GDP) growth in 2021 to 7% from 4% in the March forecast.