United Kingdom will set out plans to raise income tax by £6 bil

03 Mars, 2021, 15:04 | Auteur: Anatole Charbonneau
  • Rishi Sunak

But his main focus will be on preventing mass job losses and business collapse, as he withdraws emergency support.

Under the Government's reopening roadmap, nearly all lockdown restrictions are due to be lifted by June 21 at the earliest, meaning furlough could continue for months after businesses can reopen.

Nimesh Shah, chief executive of tax advisory firm Blick Rothenberg, says controversial changes are likely to be ducked by Sunak tomorrow, when the limelight is on him, as he does not want to be unpopular given his higher political ambitions.

ITV News understands the £20 uplift to Universal Credit will continue for another six months, as have plans to freeze the lifetime allowance - the amount people can save in their pension pot before tax charges kick in - at just over £1 million.

Mr Sunak is also expected to announce that 750 civil service jobs at the Treasury will be transferred to Darlington, in the north-east of England, as part of the government's plan to move decision-making out of London.

Committee chair and Tory MP Mel Stride noted that with Britain's "public finances on an unsustainable long-term trajectory, our clear message is that Budget 2021 is not the time for tax rises or fiscal consolidation, which could undermine the economic recovery".

There are also signs that the speedy rollout of Covid vaccines - more than 20 million people in the United Kingdom have now had a jab - is having a better impact than anticipated.

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The UKHospitality trade body welcomed the plan, saying many firms are "struggling to see how they could survive through" Boris Johnson's road map for reopening, with laws on social distancing set to continue until at least June 21 - the earliest date when nightclubs will be considered for reopening.

For Labour, shadow Treasury minister Bridget Phillipson said: "We need a Budget that secures Britain's recovery and rebuilds the economic foundations the Conservatives weakened before the crisis".

"This industry is a significant driver of economic activity, employing more than 700,000 people in jobs across the United Kingdom, and I am committed to ensuring the arts are equipped to captivate audiences in the months and years to come". Until now the government had only allowed applications from workers who were self-employed in the 2018-19 tax year, but eligibility for the Self-Employment Income Support Scheme (SEISS) will be expanded to those who first reported being self-employed in 2019-20.

He said he was "concerned companies are going to have to step in and pay greater contributions".

Keir Starmer and Rishi Sunak.

The previous Budget took place on 11 March past year - the same date as the World Health Organisation declared coronavirus to be a global pandemic.

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