Surplus Budget - British Government - Essay Example

Property market is a term that is used to mean swelling and buying buildings and lands. The most common investment in the property market is real estate. Real estate is the current name associated with the land and anything that is affixed to it permanently (Robert & Leiwy 2010). The main feature includes the fences and other building affiliates like light fixtures, plumbing and the heating fixtures. Any property that does not bear affixing title is referred to as the personal property. Some of the assets that are not affixed include draperies and furniture hence referred to as personal property. In countries like the United State, lease and sale of the real estate’s is a core economic activity. The federal and the state laws regulate the laws of the real estate to ensure smooth operations. In the real estate, there exist two types of business; they include residential and commercial real estates. The residential involves the rental and sales of hoses and land to families and individuals for the daily living. Commercial involves the lease and sale of property with an aim of making profits for business purposes.

In the case of residential property, the sales are highly regulated. The federal states that all the brokers and the agents who get the commission from the real estate owners after the property is sold are mandated to have licenses. The license has requirement to regulate the number of agents and brokers. The requirements states that one must hold at least a college diploma and pass the written real estate laws and principals’ test and one should not be a minor. Dating back from 1970s, there has been increased protection for the homebuyers. The seller of the homes is supposed to give credentials on the housing department. The sellers are obliged to any problem of the house. Example of the problems that the seller is supposed to disclose includes the termite presence and wet basements (Atrill & McLaney 2015). When the sellers fail to give, the correct information there is a probability of lawsuits and the revocation on the purchase agreement. Some laws states that the inspecting officer should visit and asses the property and give a detailed report on the property.

In the residential real estate business, the buyer is required to have a mortgage from lending institutions or bank. The lending institution is supposed to get some security interest from the real estate. The getting of security interest implies that incase the borrower fails to pay back the expected mortgage, the lending institution has authority to obtain back the title of the property and has all the authority to resell it as a compensation for the mortgage debt. In Britain, the government enacted the settlement procedure for the real estate to ensure the buyer is briefed on the awareness of the sales cost.

Turning the budget deficit into surplus requires many activities on the economy that generates high profits (Lindelow 2003). The surplus budget is a budget that puts it man focus on the generation to be. This kind of budget enhances security to works especially in the time of uncertainties like the time when global economic outface is been experienced. The surplus budget reduces the rate of deficit and it archives as the surplus prompting the needed reforms to fit the Britain’s future. In case of the surplus budget, the government is supposed to undertake some actions to enhance. Firstly, the government should ensure that there is additional savings that should be the same as 0.5% of the government spending as a whole. This will help to ensure that the nation will live within the set means.

The government is supposed to back the businesses with huge tax reliefs. It should ensure that there is huge reduction in the small business tariffs and rates and minimum corporate tax rate. The government of Britain must also put a lot of attention towards the reduction of the tax especially for the self-employed .The education reforms should be spearheaded and for healthy future generation the government is mandated to reduce the industry levy so that children can acquire the soft drinks cheaper prices. The people working all over the nation should be supported by at least eleven thousand five hundred Euros for the personal allowances and forty five thousand thresholds at a higher rate. The Britain economy is projected to be the fastest growing economy in the year 2015 and 2016. This faster growth in economy is attributed to job creation and good government policies on the corporate world.

The surplus budget target is being hit by several side backs like the unemployment. The unemployment rate stands at a 74% (Grauwe 2016). The global economy outlook has worsened since the establishment of the Spending Review statement in 2015. The global growth has remedially worsened with the IMF giving statistical figures of 3.4% in the advanced economies there has been concerns over the productivity growth. There has been increased deflationary risk and rise in debt levels. After the financial crisis of 2009 and 2008, the productivity growth has been weakened in all the advanced economies, United Kingdom being among them. Among the developing countries, there has been increase in risks associated with the economic growth. The fall of economies has been attributed to several major occurrences. The major one is the fall of the oil prices that has had negative impacts on the exporting economies like Russia. The other major occurrence is the recession experienced in Brazil and Russia (Budget 2016). China has also largely contributed to the fall of the global economic growth especially through the rebalancing thus affecting growth in several countries.

There has been a lot of anticipation in the prospects of global growth that was clearly demonstrated in the financial market through its volatile nature. The world market has had the worst time of the century as the stock market had $8 trillion lower their value. According to (Grauwe 2016), the UK economy is prone to the global shocks and slowdowns as it consist of an open economy. This challenge in the economic growth implies that even here in United Kingdom there is a major constraint in the sustenance of living standards due to the financial experiences being felt.

The financial constraint being experienced in Britain has prompted the government to work basing on it long term plans for the economy. From 2010, the government has put all the focus towards reducing the rate of deficit. While the government reduces the deficit, it also tries to increase the supply reforms that are necessary towards the long-term growth productivity. Increasing the supply reforms has enabled the introduction of strict monetary policy that aid to maintain the economy while sustaining the fiscal position. The deficit rate of 3.8% is foreshadowed to be low by at least two thirds of the current peak position. The ratios among the banks have rose and job creation has gone high. By the year 2010, there has been creation of over 2 million new jobs all over the UK economy. It is estimated that 930 billion Euros would have been cumulatively been borrowed had authorities not put an action to cut the accrued structural deficit. The UK government had been rated as being among the worst prepared economy incase financial crisis occurred. In the current date, the UK government is among the best-prepared countries in case of financial crisis. UK has laid certain long strategies to help its economy prosper. The measures it took were all subject to response slowed productivity growth in tandem to the global economy.

One of the responses to slow product growth by the UK government was through the supporting savings. The government launched an awareness campaign all over the economy to promote savings through reduced interests’ rates. Government also introduced new business tariffs. The tax levied on enterprises and businesses was cut by significant figures. The healthcare and education has been improved through provision of key social amenities like food and digital literacy. The people who are employed have also been able to improve their living standards as the tax levied on their salaries has been cut. There has been significant investment especially on the devolving power and infrastructures. Government has also put in place structures to ensure credibility in the public finances. The budget that is in place is a budget that is obliged to act now in avoidance later payments. The budget that is in place helps Britain to prosper even during the uncertain times and providing opportunity and security to the generation to be.

The government has laid a well-designed plan on the fiscal forecast and the economy. The forecast of the Gross Domestic Product in place has simultaneously increasing figures. The figure are 2.0% for the year 2016 and 2.2% for 2017and later 2.1% projected towards forecasted period. The forecasted figures show that by the end of the year 2016 the number of employment should at least be 31.5 million. The figures are assumed that they will rise cumulatively to an approximate of 32.1 million by the end of the year 2020. The net borrowing from the public sector is also forecasted to go down to 3.8% of the Gross Domestic Product in the year 2015 to 2016. The fall is said that it should continue for the next years. The public funds are estimated to contribute a 10.4 billion Euros by the year 2020.

The UK government introduced a well-stipulated sound and well public finances. The government main objective as a step of helping the next generation is by ensuring sustainable footing of the public finances. This offers the security bedrock for the employed personnel. This will prompt the attaining of surplus by the year 2019 to 2020 via the fiscal targets. The government has stated to conduct the review on the departmental efficiency that will aid to further 3.5 billion Euros from the public spending to savings. The government ensures that the pensions provided to the public are clearly stipulated to avoid misappropriation. This is further enhanced through reduction of discount rates on the pension schemes. The federal authorities further stated to continue spending 0.7% of the national gross income on the development of infrastructures.

In attaining the surplus budget, the government is needed to major on supporting the working people. In support for the working people, the governments need to steer the radical devolution within the school leaders. This is achievable through the set goal of all the public schools to be academies by the year 2020. Launching of save schemes help assist people with low incomes through provision of 50% bonus from the government (Saunoris & Payne 2010). The government also apprehended on the creation of opportunities and the business backing. The surplus budget backs enterprises and business to increase the job creation opportunities and productivity growth. The new budget majors on reducing taxes to the small businesses as a way of supporting them. The mode of taxation has also been modernized through digital taxation to avoid inconveniences.

The modernization of the rules on corporate tax loses has further spearheaded the surplus budget. This has enhanced the flexibility for the businesses while at the same time ensuring that that the tax paid by the companies is dependent on the amount of profits them generate to be fair. The abolishment of bureaucratic and the carbon reduction burdensome have helped to control the environment creating an enabling environment for the flourishing of businesses thus favoring the surplus budge.

Opportunities have been created all across the United Kingdom. The surplus budget contains radical reforms aimed at driving the economy towards the future prosperity. The government invests mainly on the infrastructures that will favor the economic growth for the next economic growth (Abeysinghe 2008). Devolution revolution is among the key subjects driven by the surplus budget. This gives authority to the local areas to take make and take controls over the matters that face their communities either negatively or positively. The headlines measures consist of London future infrastructure protection through the authorizing of the Cross rail two. The employment in London has tremendously gone high in London for the past five years. This was facilitated through the government reforms and reward work benefits. The government efforts have helped to see a big labor market. The employment rate in UK is the highest compared to any G7 country. In the data records for the year 2015, it showed that there was high labor demand with existence of 767, 000 vacancies (Saunoris 2010). Another positive indicate was the fall of aged works by over 700,000 between the year 2010 and 2015. The women employment had gone high to 69.1% as at the end of 2015.

The earning of the general population had shot up with an annual pay of 2.5%. This increase in earnings was facilitated by the increased job opportunities. The wage increase continued for the next fifteen months since 2015 therefore bypassing the inflation. The government has also focused on the sector rebalance. The government majorly has emphasized on the big profit making bodies in both the services and the manufacturing. The government has played a very great role in pushing the surplus budget. It has undertaken some measures to ensure safety of the banks together with the households’ finances. The government intervention has helped in the recovery of the economy using the active monitory policies