Throughout 2021 so far, much speculation has occurred about what could be included in this year’s Spring Budget. Some said Chancellor Rishi Sunak would lay out plans to balance the country’s economy, while others think he will focus on supporting Brits through the tumultuous economic months to come as the country makes a recovery. Although all will be confirmed tomorrow, one thing is for sure – the pandemic’s second wave is causing untold economic damage to the UK, so Covid support is likely to be front and centre in an effort to stop people falling deeper into financial uncertainty.
What will Rishi Sunak announce on Wednesday?
All eyes will be on the Chancellor tomorrow as he delivers his second budget, with thousands of people waiting to see what extra Covid support they can get their hands on.
Many will be hoping to hear of an extension to the £20 uplift in Universal Credit payments, with others hoping to hear more details about the Self Employed Income Support Scheme or the extension of furlough as the UK steps closer to the roadmap end date this June.
The budget comes as latest figures show the UK economy contracted by 9.9 percent last year as unemployment rose to 5.1% in the three months to December.
Various reports have emerged of leaked plans for Wednesday’s Budget, here’s what is known.
READ MORE: Capital Gains Tax warning: Rishi Sunak could enact ‘stealth’ change
But on the other side of the coin, political journalist Tom Newton-Dunn reports the Budget will aim to raise more money than it spends, with tax rises expected to be spread out over three or four years.
This is made all the more evident with the incoming IR35 reforms, which will boost billions into the Treasury’s stash.
Taxes are likely to go up, which won’t come as a surprise to many given the excessive spending proven necessary through the pandemic.
Former Tory leader William Hague writes: “It pains me to say, after spending much of my life arguing for lower taxes, that we have reached the point where at least some businesses and personal taxes have to go up.”
From an outsider’s point of view, it almost seems as though Mr Hague, who is on good terms with the Chancellor and held Mr Sunak’s Richmond seat before him, is warning of tomorrow’s events in an effort to soften the blow for the Chancellor.