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The chancellor is expected to hand over £ 408 million to help museums, theaters and galleries reopen in England as coronavirus restrictions ease.
Rishi Sunak will announce support for the most affected cultural sector in his Budget on Wednesday, as many theaters mark a year of forced closure this month.
The budget will also include a “significant portion” of a £ 300 million sports recovery package to be allocated to cricket, as fans prepare for the sport to resume this summer.
But it comes at a time when there is debate about how to pay the extra expense, after the latest figures showed Net public sector debt increased by 316.4 billion pounds. in the 10 months since early April, almost entirely due to the coronavirus pandemic.
The Office for National Statistics said state debt rose to £ 2.1 trillion at the end of January, about 97.9% of GDP, the highest debt-to-GDP ratio since the financial year ending in 1963.
Former Chancellor Ken Clarke told Sky News that Sunak should get rid of the government’s triple lockdown on pensions, lift taxes on older voters and watch out for corporate tax increases.
The chancellor is said to be considering raising corporate tax to 25% from 19%.
Shadow Chancellor Anneliese Dodds wrote in The Guardian: “There is a clear long-term case of corporate tax rate increases, as well as actions against loopholes, where the Conservatives have made us an international outlier. for a decade.
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“If there were a sensible plan to raise the rate in this parliament, of course, Labor would look closely at it, but now is not the time for immediate tax increases.”
Lord Hague, a former Conservative Party leader, said taxes would have to go up to pay for what had been spent on things like the licensing plan during the pandemic.
He wrote in The Daily Telegraph: “It pains me to say, after spending much of my life defending lower taxes, that we have reached the point where at least some personal and business taxes have to go up.”
The former foreign secretary added that anyone who opposes some form of tax increase in the current climate is buying “dangerous illusions.”
Prime Minister Boris Johnson has scrapped the idea of penalizing consumers and motorists, telling The Sun that he wanted to use the UK’s ambition to achieve carbon neutral status by 2050 to “generate high-quality, highly-skilled jobs. and with high wages, “rather than raising taxes on high-carbon foods like meat.
The newspaper also said the fuel tax would be frozen for the 10th year in a row.
Among the spending promises expected in Wednesday’s budget are:
- An additional £ 300 million to go to the £ 1.57 billion Culture Recovery Fund
- £ 90 million for national museums and cultural bodies to keep them afloat until they can open on 17 May at the earliest and £ 18.8 million for community cultural projects
- £ 77 million for the decentralized administrations of Scotland, Wales and Northern Ireland to help cultural groups there
- £ 150 million community-owned fund for community groups to take over distressed pubs or other community assets to keep them running
- At £ 520 million small business pack to promote their software and training under the Hope To Grow scheme
- The licensing plan is expected to extend beyond the April end date, as official figures put the unemployment rate at a five-year high of 5.1%.
Regarding the arts sector measures, the chancellor said: “Throughout the crisis we have done everything we can to support our world-renowned arts and cultural industries, and it is right that we continue to build on our historic package of support to the sector.
“This industry is a major driver of economic activity, employing more than 700,000 people in jobs across the UK, and I am committed to ensuring that the arts are equipped to captivate audiences for months and years to come. “.
See and follow the Live Budget Wednesday with special coverage and analysis starting at 12.30pm
A special edition of the daily podcast will be available to listen to starting at 7 pm.
