Chancellor Rishi Sunak sets the UK Budget for 3rd March 2021
Rishi Sunak has described the Budget as ‘will set out the next phase of the plan to tackle the virus and protect jobs’.
Sunak become Chancellor in February 2020 after Sajid Javid’s shock resignation. This will be Sunak’s second Budget after his first being 11th March 2020.
The March 11th 2020 Budget was heavily steered towards the government’s first response to the coronavirus pandemic, which focused on new jobs and business support with £30bn of commitments.
There was speculation there would be an autumn Budget but this did not happen although Sunak has provided both a ‘summer economic update’ and a ‘winter economy plan’, still focusing on Covid-19 support.
The spending review was held in late November, with Sunak emphasising the UK was facing an ‘economic emergency’, and revealing the economy is set to contract by 11.3%, the largest fall in over 300 years.
There has been no suggestion that of any planned tax increases or other means to reduce the government’s borrowing, which means that next years Budget will be the first time he can announce changes to the UK tax.