LONDON (AFP) – British Finance Minister Rishi Sunak unveiled his annual budget yesterday promising measures to safeguard businesses and jobs, while tackling virus-fuelled debt as England prepares to exit its third lockdown.
Ahead of the budget statement in Parliament, British Prime Minister Boris Johnson’s Conservative government said it would extend its furlough scheme paying the bulk of wages for millions of private-sector workers until the end of September, five months longer than planned.
“We will continue doing whatever it takes to support the British people and businesses through this moment of crisis,” Chancellor of the Exchequer Sunak said, according to pre-released excerpts of his speech. “There’s now light at the end of the tunnel with a roadmap for re-opening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”
Sunak said once the economy is “on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that. In today’s budget we begin the work of building our future economy”.
At 19 per cent, Britain’s corporation tax rate is the nation’s lowest on record and one of the smallest in the Group of 20 bloc of wealthy nations. The government cut taxes during the pandemic – reducing sales tax on food, accommodation and attractions.
It also lifted the threshold at which stamp duty is due on home purchases, helping property buyers and the construction sector.
Some or all of these measures could be extended in the budget, according to reports.
The economy shrunk almost 10 per cent in 2020 because of the impact of the pandemic, with activity also hampered by turmoil ahead of Britain’s eventual exit from the European Union. Reflecting the problems, United Kingdom unemployment has shot up to a five-year high of 5.1 per cent.