Benefits of Using Fiscal Policy to Control the UK Economy

This article discusses the benefits of using fiscal policy to control the UK economy, including reducing inequalities, creating employment, and reducing inflationary pressures. It also covers the current state of the UK economy and the implementation of fiscal policies to improve economic growth.

The benefits of using fiscal
policy to control the UK
economy

UK economy:
UK Economy is recovering and expected to reach pre –crisis levels within year of 2022,
where growth has been moderating to 4.7% within year and consumption parameters have been
functionally growing for consumers. This signifies inclusion of new economic policies,
engagement of fiscal policies and also evolvement towards new strategies for technical growth in
business and overall GDP
UK government spending has been around 73.2 billion on current day, within year 2022,
which is 1.0 billion more than in February 2021. UK government borrowing has fallen from
£322 billion (15% of GDP) seen in 2020-21 to £128 billion (5.4% GDP) in 2021-22 which is
positive economic shift.
The UK debt, within public sector has been found to be £2,326.8 billion in figures. UK
has been paying around £310 to £410 billion, for covid -19 healthcare management which has
been found to be one of the specific expenditure. The unemployment rate of UK is expected to
fall to four percent compared with 4.5 percent in 2021. Rate of unemployment is expected to
remain low within economy which is positive sign.
UK gross domestic product (GDP) is estimated to have grown from 0.8 % in January
2022 and is now 0.8% above its pre coronavirus level. Despite end of Covid 19 restrictions,
immediate outlook for UK economy is uncertain (Current UK fiscal rules, 2022.) The
intensifying price pressures and imminent tax hikes have been impacting real household
incomes, along with persistent supply chain disruption and acute labor shortages within output
development. Narrow UE-UK trade deal weights down on UK exports which will revive EU
economy diversely, based on further extended criteria for improved timely expansion based on
competent fiscal policy implementation. The fiscal policy engagement has enabled UK to
develop new economic changes, based on specific functional goals for optimum development. It
can be analyzed that within period of 2022, January to present 2022, April there has been
extensive improvement in economic policies engagement within UK which significantly creates
optimistic economic outlook. The UK economy situation holds productive scope to be attained in

near future, and revive extended positive business growth for extended commercial growth
(Rogers, Deutz and Ramos, 2021).
Fiscal policy:
UK has been developing improvement seen in public finances, government fiscal rules
and prioritized deliver reductions in tax, where fiscal rules with increased margin of safety is
prioritized. Preserving fiscal space is vital given increasing risks from global challenges to UK
economy and level of increased uncertainty parameters.
Fiscal policy has various advantages such as capital formation, resource mobilization
and incentives providence to private sector which also encourages savings among people. The
role of fiscal policy is to alleviate poverty and creates employment generation fundamentally,
where it advances scope to develop new fundamental growth criteria for extended development.
Fiscal policy implementation in UK enables to reduce inequalities among health and income
levels, creates strengthened rise towards productive employment parameters. The UK economy
has been functionally growing towards new vision, based on imperative development for overall
employment level diversification. It enables to help reduce budget deficit, where UK with large
budget deficit in economy has been witnessing sense to use fiscal policy for reduced inflationary
pressures with reduced inflation. The implementation of fiscal policy in UK has enabled new
changes to be evolved in recent period, where there is extended growth rise among economy
parameters. It has been forming new extended economic policies based on fiscal policy
implementation, for extended determined productive economy expansion variedly. Fiscal
policies implementation has enabled business to come over new strategies and generate
economic competent decisions among people. This has further extended growth aspect to be
improved, and economy to revive growth decisions based on extensive functional growth
paradigms based on determined long term economic turns (Pollard, 2021).
Employees face rising security contributions from, where plain entails a 1.25
percentage rise in national insurance based on broad based inflation perspectives. Consumer
spending is forecast to grow at 4.4 % in 2022 down from its previous forecast to 6.9%.

REFRENCES
Books and Journals
Pollard, J.S., 2021. Brexit and the wider UK economy. Geoforum, 125, pp.197-198.
Rogers, H.A., Deutz, P. and Ramos, T.B., 2021. Repairing the circular economy: Public
perception and participant profile of the repair economy in Hull, UK. Resources,
Conservation and Recycling, 168, p.105447.
Online
Current UK fiscal rules. 2022. [ONLINE]. Available Through :<
https://www.instituteforgovernment.org.uk/explainers/fiscal-rules>