Minggu, 28 Februari 2021

Budget: Rishi Sunak promises help as Covid restrictions ease - BBC News

Chancellor Rishi Sunak has said he "is preparing a Budget that provides support for people" as coronavirus lockdown rules are eased.

Currently, restrictions in England are set to be fully lifted by 21 June.

Mr Sunak said it was right to provide help but added that he wanted to "level with people" about the "shock to the economy" caused by Covid.

He dismissed claims he had told MPs he wanted to raise taxes now so he could cut them ahead of the next election.

This comes as the government announced £5bn to help high street businesses.

Meanwhile Labour's shadow chancellor, Anneliese Dodds, accused the chancellor of being "focused on politics" over protecting the economy.

Mr Sunak told the BBC's Andrew Marr the government had gone "big and early" when providing support to those hit by Covid at the beginning of the pandemic - and added "there's more to come".

The furlough scheme - which supports around 4.7 million people - is due to expire at the end of April along with the £20 weekly increase in Universal Credit.

Mr Sunak said he hoped to provide support "along the path" towards gradually ending restrictions in England by 21 June, as set out in Prime Minister Boris Johnson's roadmap.

However he also said he wanted to "be honest" with the public about the pandemic's impact on the economy and "clear about what our plan to address that is".

He warned high levels of borrowing had meant Britain was "more sensitive to interest rate changes" and that debt could "rise indefinitely" if borrowing continued after the recovery

He said making public finances sustainable "isn't going to happen overnight" but would not confirm newspaper reports he was planning to freeze income tax thresholds or raise corporation tax in a bid to lower debt.

Currently people have to pay the basic level of tax on anything they earn over £12,500 a year and the higher rate of tax on any earnings over £50,000. Freezing those thresholds would mean more people paying more tax as wages rose.

'Party politics'

Asked whether he had privately told Conservative MPs he wanted to raise taxes now so he could cut them ahead of the next general election Mr Sunak replied: "I don't recognise that."

Ms Dodds said the chancellor should "follow what is in the interest of our country" not "party politics".

Speaking to Sophy Ridge, she said Labour would "look carefully" at proposals on corporation tax but added: "What we don't want to see right now is what the chancellor is doing, particularly in relation to council tax, the imposition of additional costs at a point when our country is experiencing the worst economic crisis of any major economy."

She also called on the chancellor to confirm that the furlough scheme and £20 increase to Universal Credit would be kept for as long as Covid-based restrictions were in place.

Mr Sunak will lay out the government's tax and spending plans in his Budget on Wednesday, at a time when public borrowing has led to the highest national debt level since 1963.

Conservative former chancellor Lord Clarke has argued Mr Sunak should consider raising VAT, national insurance and income taxes in order to repair the public finances.

However some Conservative MPs - including ex-Brexit Secretary David Davis - have warned against such rises and potential Tory rebels have been told they risk being kicked out of the parliamentary party if they vote against the Budget.

Martin Beck, senior economic adviser to economic forecasting group EY ITEM Club, said repairing the public finances could wait and warned that "premature fiscal tightening could undermine recovery".

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2021-02-28 13:18:38Z
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