The chancellor of the exchequer, Rishi Sunak, introduced the annual budget in the House of Commons yesterday, outlining the government’s tax and spending plans for the year ahead, painting a positive picture of the UK economy’s health as it emerges from the pandemic. He said that the pandemic had not had the intended impact on the UK economy.
The UK economy is expected to return to pre-COVID levels by next year, and government plans are geared toward the ‘post-COVID’ era, which would pave the way for a “economy of greater incomes, better skills, and rising efficiency,” according to Sunak. He promised more frequent revaluations and more money for business rate reduction, as well as a 50% business rates discount for the retail sector in England in 2022-23, up to a maximum of £110,000. He also pledged tax cuts for businesses who make property renovations beginning in 2023.
The UK economy is expected to return to pre-COVID levels by next year, and government plans are geared toward the ‘post-COVID’ era, which would pave the way for a “economy of greater incomes, better skills, and rising efficiency,” according to Sunak. He promised more frequent revaluations and more money for business rate reduction, as well as a 50% business rates discount for the retail sector in England in 2022-23, up to a maximum of £110,000. He also pledged tax cuts for businesses who make property renovations beginning in 2023.
According to the Office of Budget Responsibility, inflation was 3.1% in September and is expected to average 4% next year (OBR). Annual growth is expected to pick up to 6.5 percent this year, then 6 percent in 2022. “Employment is increasing. Investment is increasing. Public services are getting better. The government’s finances are beginning to stabilise. Wages are also increasing, “Sunak informed MPs.
Unemployment is likely to peak at 5.2 percent next year, down from 11.9 percent previously projected.
