Many anti-China elements are believed to remain in the shadows in Hong Kong, waiting for an opportunity to strike back at the Hong Kong Special Administrative Region government. This became evident from social group chats after the 2025-26 Budget announcement on Wednesday, where many criticized the absence of salary cuts for civil servants. They sensationalized claims that the budget victimized the elderly through the revision of the HK$2 ($0.26) public transport fare concession scheme and affected schoolchildren because of the cancellation of the annual HK$2,500 subsidy for primary and secondary students. They intentionally overlook that these are mild yet essential measures to cope with the budget deficits from the last three years. Some even provocatively predicted that the budget would prompt more Hong Kong residents to move to the United Kingdom under the British National (Overseas) (BN(O)) immigrant scheme. Really?
They should know that Hong Kong residents who have migrated to Britain are now generally living a lower-quality lifestyle, and many are struggling psychologically and economically. Britain has regressed in recent years, grappling with a stagnant economy, shrinking incomes, rising inflation, and growing political and social unrest.
BN(O) holders in the UK face an average income tax of 40 percent, while most taxpayers in Hong Kong pay effective rates between 2 percent and 17 percent. They also have to pay a 10 to 28 percent capital gains tax on investment profits, whereas there is no capital gains tax in Hong Kong. Additionally, they must pay a value-added tax (VAT) of 20 percent on most goods and services, which does not exist in Hong Kong. Furthermore, energy bills, public transport, and dining out are significantly more expensive in the UK.
A new study by British Future revealed that most Hong Kong people who moved to the UK in the last three years are still searching for jobs. Only 35 percent of BN(O) passport holders have found full-time employment. Many highly qualified individuals, such as teachers and accountants, have become trapped in low-paid work, like supermarket cashiers or kitchen workers.
The terms of the BN(O) visa stipulate that they have no recourse to public funds during their first three years in the UK. This prevents them from accessing most in-work and out-of-work benefits. For example, they cannot attend subsidized language lessons the UK government provides.
Because of the significant budget deficit, the UK has closed more than 50 percent of its police stations since 2010, with London having closed over 75 percent. This has resulted in a crime rate in London that is about double that of Hong Kong.
Most importantly, the critics fail to recognize the positive picture of Hong Kong painted by the budget. Despite the deficit, the HKSAR government continues to invest heavily in future prosperity. Hong Kong is expected to achieve economic growth of 2.3 in 2025 after registering 2.5 percent growth in 2024, compared to the UK's increase of 0.4 percent in 2023 and 0.8 percent in 2024.
In the 2025-26 budget, Financial Secretary Paul Chan Mo-po announced several vital investments to strengthen foundations for accelerated development. First, HK$1 billion has been allocated to establish the Hong Kong AI Research and Development Institute, aiming to develop Hong Kong into an international hub for artificial intelligence (AI) development and cooperation. In comparison, one cannot even access mobile phones while on underground trains in the UK.
Second, HK$3.7 billion has been allocated to the Hong Kong Park of the Hetao Cooperation Zone, which, upon completion, is expected to generate 52,000 job opportunities and contribute HK$52 billion to the Hong Kong economy annually.
The budget demonstrates the government's resolve to restore fiscal balance through cost control while continuing to invest in Hong Kong's long-term development, meeting all its foreseeable software and hardware needs and ultimately improving the quality of life of all Hong Kong residents. It deserves the community's unqualified endorsement
Third, HK$215 million has been set aside to install a port community system for improved maritime data flow and to establish the Hong Kong Maritime and Port Development Board, enhancing Hong Kong’s status as a global maritime hub.
Fourth, Chan pledged to allocate HK$1.235 billion to the Hong Kong Tourism Board in the coming year, focusing on developing markets in the Middle East and Association of Southeast Asian Nations, to attract more high-end tourists.
Fifth, a HK$300 million subsidy scheme will be launched in the middle of the year to facilitate the installation of 3,000 fast electric vehicle (EV) chargers across Hong Kong by 2030. This will support an additional 160,000 EVs and make Hong Kong one of the leading regions for EV usage worldwide. In the UK, EVs are a rare sight.
Finally, addressing the major housing issue in Hong Kong, 80,000 private housing units are expected to be completed in the next five years, with 65 percent of the land coming from the Northern Metropolis and the Tung Chung New Town Extension. The total public housing supply in the next five years is projected to reach 190,000 units, while the potential supply of firsthand private flats will be around 107,000 units in the next three to four years.
Despite the budget deficit, the budget continues to provide additional welfare subsidies. The number of vouchers under the Residential Care Service Voucher Scheme for the Elderly will increase by 1,000, reaching a total of 6,000. Similarly, the number of vouchers under the Community Care Service Voucher Scheme for the Elderly will also rise by 1,000, totaling 12,000. These schemes will have an annual expenditure of approximately HK$1.71 billion and HK$900 million, respectively.
An additional annual provision of HK$186 million is allocated to support child abuse victims and their families, along with allied services. Furthermore, 1,280 additional day community rehabilitation and home care service places will be provided for persons with disabilities, involving an extra annual expenditure of about HK$160 million. My only comment is that the budget did not mention the Lantau Tomorrow Vision, which I consider the most critical infrastructure project for Hong Kong and should not be abandoned.
In conclusion, the budget demonstrates the government's resolve to restore fiscal balance through cost control while continuing to invest in Hong Kong's long-term development, meeting all its foreseeable software and hardware needs and ultimately improving the quality of life of all Hong Kong residents. It deserves the community's unqualified endorsement.
The author is an honorary fellow of HKU Space and Metropolitan University and a council member of the Chinese Association of Hong Kong and Macao Studies.
The views do not necessarily reflect those of China Daily.
