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See live as Chancellor Rishi Sunak announces a new budget for Covid’s ‘next stage’
Rishi Sunak has announced the extension of the VAT cuts for the hospitality and tourism industries, as well as the extension of the end of the stamp duty holidays, in this year’s “fiscal power” budget.
Purchases of up to £ 500,000 will remain tax-free, and homes purchased up to a value of £ 250,000 until the end of September, the chancellor confirmed.
Speaking in the Commons, he told MPs that more than 700,000 people have lost their jobs since March 2020 and that the economy has contracted 10 percent, the biggest drop in more than 300 years. But he said that the UK’s GDPR will return to its pre-Covid peak in mid-2022, according to the Office of Budget Responsibility, which is six months earlier than previously planned.
Speaking to Cabinet before the announcement, Sunak said the pandemic “has hit our economy hard” and “we must be honest” about what that means, but “we can be optimistic about the recovery,” according to the number 10.
Paul Johnson, director of the Institute for Fiscal Studies, said he did not expect Sunak to announce tax increases. “I expect some tax increases, but not this year, in the next two or three years,” he told BBC Radio 4. Today Program.
£ 20 universal credit increase to continue through September
The £ 20 weekly increase to universal credit payments will continue for another six months, Rushi Sunak announced.
The number of people claiming universal credit in the UK has doubled since the start of the pandemic, from 3 million in March 2020 to 6 million earlier this year.
Social affairs correspondent May Bulman reports:
Sam hancockMarch 3, 2021 1:12 PM
The unemployment forecast was drastically lowered from 11.9% to 6.5%
The unemployment forecast was drastically lowered from 11.9% to 6.5%
Sam hancockMarch 3, 2021 1:10 PM
Sunak reveals ‘business-friendly’ government corporate tax hike
Rishi Sunak said that the corporate tax rate paid on the company’s profits will increase to 25 percent in 2023.
He told MPs on Wednesday: “Even after this change, the UK will still have the lowest corporate tax rate in the G7, lower than the US, Canada, Italy, Japan, Germany and France.”
He added: “First, this new higher rate will not go into effect until April 2023, long after the point where the OBR expects the economy to have recovered. And even then, because corporation tax is only charged on profits, any distressed business, by definition, will not be affected.
“Second, I am protecting small businesses with profits of £ 50,000 or less, by creating a small rate of profit, which remains at the current rate of 19 per cent. This means that around 70 percent of companies (1.4 million companies) will not be affected at all. “
He later referred to the current government as “business friendly.”
Policy Correspondent Jon stone has the full report:
Sam hancockMarch 3, 2021 1:09 PM
Sunak: stamp tax ‘holiday’ extended until the end of June
The stamp duty holiday for home buyers will be extended for another three months until the end of June, Rishi Sunak announced.
Purchases of up to £ 500,000 will remain tax-free, and homes purchased up to a value of £ 250,000 until the end of September.
Deputy Political Writer Rob merrick reports:
Sam hancockMarch 3, 2021 12:58 PM
‘New restart grant’ will help businesses reopen in April
Rishi Sunak said that a “new restart grant” will be provided in April to help companies reopen.
He told MPs: “Non-essential retail businesses will open first, receiving grants of up to £ 6,000 per location.
“Hospitality and leisure businesses, including personal care and gyms, will open later or be more affected by restrictions when they do, so we will give them grants of up to £ 18,000.
“That’s £ 5bn of new grants, on top of the £ 20bn we have already provided.”
Sam hancockMarch 3, 2021 12:55 PM
VAT cuts are extended for the hospitality and tourism sectors
Political correspondent Ashley cowburn reports:
Rishi Sunak has announced that the government VAT reduction for the hotel and tourism industries will run for six months until September 30.
The government first announced the 5 percent cut last summer, applying to the hospitality industry, hotels and vacation accommodation and admission to certain attractions, as restrictions were relaxed.
Sam hancockMarch 3, 2021 12:52 PM
GDPR to return to pre-Covid peak in mid-2022, says Sunak
Rishi Sunak said that Covid-19 has caused “profound damage” to the economy and forecasts make clear that “repairing the long-term damage will take time.”
But he also told ministers that the Office of Budget Responsibility (OBR) sees a “faster and more sustained recovery” than it expected in November.
Sunak said that UK GDP is now expected to return to its pre-crisis peak in mid-2022, six months earlier than expected.
Economics editor Ben chu reports:
Sam hancockMarch 3, 2021 12:49 PM
Chancellor Outlines Three-Part Budget Plan
Rishi Sunak said it will take the UK and the whole world “a long time to recover from this extraordinary economic situation”, telling MPs: “But we will recover.”
The chancellor said more than 700,000 people have lost their jobs since March 2020 and the economy has contracted 10 percent, the biggest drop in more than 300 years.
He told the Commons: “First, we will continue to do whatever is necessary to support the British people and business at this time of crisis. Second, once we are on the road to recovery, we will have to start fixing public finances, and I want to be honest today about our plans to do so. And third, in today’s Budget we begin the work of building our future economy. “
Sam hancockMarch 3, 2021 12:45 PM
Sunak Announces New Budget at Commons
Rishi Sunak has started announcing this year’s budget in the House of Commons.
Sam hancockMarch 3, 2021 12:40 PM
Prime Minister attacks Starmer for defending the ‘interests of the Yemeni people’
the MirrorLizzy Buchan’s political correspondent reports the following from the PMQs:
Sam hancockMarch 3, 2021 12:23 PM
