Wake up, come a big news, blind the eyes of the Chinese, another city in the UK went bankrupt, both after the bankruptcy of Birmingham, the second largest city in the United Kingdom in September, the recent central city of Nottingham due to local ** overspending of 23 million pounds, has also gone bankrupt, many small partners who do not know the truth will have a question, how can ** still go bankrupt?
In a short period of time, the bankruptcy of the two cities has undoubtedly sounded the alarm for the British economy, and what is even more worrying is that according to the British side, according to the British side, in the next 2024 to 2025, about 26 places in the United Kingdom** will face the risk of bankruptcy.
This means that if effective measures are not taken, more cities will be in financial trouble, and 90% of the UK** is currently using its fiscal reserves to barely stay afloat.
This is a staggering figure that reflects the severity of the UK's local ** fiscal situation, so what will happen to the UK if this continues?
At present, the City of Nottingham has stopped all expenditures outside of services provided by law, and if this continues, it will be difficult for employees to pay their salaries, including police, janitorial and various service personnel, without whom do you think a society will be in chaos?
So why does the local ** in the UK have to declare bankruptcy?
Because the relationship between *** and local ** in the UK is relatively simple, mainly the relationship between superiors and subordinates.
Responsible for the formulation of national policies and laws, while local** is responsible for enforcing these policies and laws, and managing local public affairs.
In terms of financial taxation, the connection between ** and local ** is not close, mainly because the UK has a tax sharing system, and taxes are collected and used separately by each level**.
This is fundamentally different from China's fiscal transfer, we are the developed areas of fiscal transfer support underdeveloped or unable to make ends meet, Sichuan is the province with the most transfer payments.
For example, in the 2022 budget implementation of Aba Prefecture in Sichuan, the local general budget revenue is only 347.5 billion yuan, but the expenditure is as high as 3033.4 billion yuan, and the rest are dependent on transfer payments, which has the advantage of ensuring the benign operation of various localities.
But Britain is completely different, each place is only responsible for itself, of course, this has something to do with the system.
One of the reasons for the tax-sharing system is the capitalist system, under which the main responsibility of the ** is to maintain market order and protect private property, rather than directly intervene in economic activities.
Therefore, the United Kingdom** does not intervene too much in taxation, but delegates the right to collect taxes to all levels**, and they decide on their own tax policies and collection methods according to the actual local conditions.
The consequence of this is that where there is money, it is very rich, and where there is no industry, it is relatively poor, but when it comes to wages, everyone wants to pursue the same, that is, equal pay for equal work, which invisibly aggravates local losses.
In addition, the United Kingdom** has also implemented privatization reforms in public services.
Many public service projects are run by private companies or non-profit organizations, which not only improves the efficiency and quality of services, but also reduces the financial burden of **.
This privatization reform is also a common practice under capitalism, as it promotes market competition and efficiency, thereby improving the level of public services.
Of course, this approach has advantages and disadvantages, that is, after the public service is completely marketized, it will lead to the pursuit of profit by capital, and internal corruption is equally serious.
The basic function of human beings is to reproduce, and the function of capital is to make money with money, and in order to reproduce and make money with money, you can pin your head to the waistband of your trousers, which is the law.
In the face of such a thorny problem, many people in the UK have pointed the finger at the former Chancellor of the Exchequer, that is, the current British Prime Minister Sunak.
According to the latest polls in the UK, Sunak's approval rating has dropped from 30% at the beginning of the year to 24%, and the opposition rate has soared from 39% to 52%.
Sunak's declining approval rating is directly related to the poor economy of the United Kingdom, especially the high inflation in the United Kingdom, and many temperamental Britons have gone straight to the streets**.
As for the reasons for inflation in the UK, first, it is related to the current global economic environment, and secondly, it is related to the United States and Europe's support for Ukraine's first-class war.
Because the important reason for inflation in Europe is the soaring international energy sky, especially the continuous growth of natural gas, of course, in addition to providing energy to Europe, Russia also has other living materials.
These materials are now imported from Asia and the Americas outside of Europe, and the cost of transportation can more than double, which exacerbates inflation in Europe.
Of course, this is all a consequence of the footsteps of the United States, Sunak has not done anything since he became prime minister, and the only thing that people can remember about him is the prime minister of British origin of Indian origin.
It seems that his prime minister won very easily, which also suggests that he could be the backstabber of the British economy.
I don't want to solve a lot of problems in my own country, but I am willing to be a dog of the United States, except for the United States, the United Kingdom is the country that has provided the most assistance to Ukraine.
In addition, at the beginning of his administration, he also falsely said that the honeymoon period of Sino-British relations had ended, but his actions, which seemed to be lively, actually did not help Britain in any way.
Russia's energy and China's market have all cut off this raw melon egg, so now the bankruptcy of the British place can also be said to be Sunak's own fault.
Because when any country has difficulties, any system or policy needs to be perfected and improved, and Sunak is still stuck in the thinking of the British Empire.
Some time ago, Sino-US relations improved, and Sunak said impatiently that "if you don't cooperate with China, the biggest problem in the world will not be solved", and also moved out the former Prime Minister Cameron, who created the first decade of China and Britain, but Britain is already terminally ill.
If the UK's economy will not improve in the next two years, with the increase of local bankruptcies, Sunak's ** is a high probability event, but for the UK, the decline has just begun, if there is no good industry and income, it is difficult to ensure that the UK's status as a developed country can continue to be maintained, do you think so?