UK Chancellor Sunak’s ‘Whatever It Takes’ Budget Gives Support But Tax Hikes Loom

Posted on by JJRowson Posted in Economy, Politics

Published: March 4, 2021

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MOSCOW, March 4 (Sputnik), Jonathan Rowson – The UK government will continue to do “whatever it takes” to protect jobs and keep businesses afloat in 2021, Chancellor Rishi Sunak said on Wednesday as he presented his spring budget that promised 65 billion pounds ($90 billion) in new measures to help the country’s economy recover from the COVID-19 pandemic, although opposition lawmakers alleged that the government had simply “papered over the cracks.”

Sunak spoke for an hour in parliament on Wednesday afternoon, and his economic proposals look set to provide families and businesses short-term relief, in exchange for tax rises down the line.

“At this budget, we are announcing an additional 65 billion pounds of measures over this year and next to support the economy in response to coronavirus,” Sunak said, adding that the government’s financial response to the pandemic now totals 352 billion pounds ($491 billion).

Speakers

Tommy McNally, a tax expert and founder of the Tommys Tax online portal.

“Data shows that previous increases in tax rates often take key resources away from businesses, forcing them to reduce staff and investment. A 5 percent increase in corporation tax is a 5 percent direct loss to company profits,” McNally said.

Steve McCabe, economist at Birmingham City University

“Barring a recovery and increase in business activity of miraculous proportions, the reality is that we’ll pay more tax, direct and indirect, for many years to come,” McCabe said.

Mike Hampson, CEO at Bishopsgate Financial

“The real focus for the budget for me was that he was focusing on generating and keeping and maintaining jobs, and obviously, the more people you have in employment, the more tax take he’s going to have, so I think the focus was right, it was in the short term; get the economy going, get people back into employment, support businesses so they don’t go under,” Hampson said.

Paul Kelly, head of employment at Leeds-based law firm Blacks Solicitors.

“Given that the road map published by the government does not have the country free of coronavirus restrictions until late June 2021, a further extension of the furlough scheme was inevitable,” Kelly said.