After almost a year of Covid-19 lockdowns within the UK causing the economy to shrink by 10%, Rishi Sunak, the chancellor of the Exchequer, has presented the 2021 budget for the year.
The budget contains an increase in the furlough scheme to October, however in July employers will be asked to pay 10% of it and in August, 20%. Support for self-employed people will also be continued, with 600,000 more to be eligible to access help. The minimum wage is also set to be increased to £8.91 an hour from April and the additional £20 a week to universal credit is to stay for another six months.
Additionally, top corporate tax will be increased to 25% by 2023, while hospitality firms will be able to maintain the 5% VAT rate, due to the impact of Covid, Despite this, there is no change to tax rates on income, in which 1 million more people are expected to start paying by 2026.
Final key points were that all alcohol duties are to be frozen for the second year. £408 million was also pledged to the arts, such as theatre, and a £300 million pledged to professional sports, to keep both open.
However, the budget fails to mention any additional support to the NHS or an increase to public sector pay. Keir Starmer has responded in saying that the budget did not "fix the NHS and social care". Other members of the opposition have spoken out about the budgets, with the SNP leader in Westminster saying it is preparing for “more Tory austerity”.
Written by Anna Male
Artwork by Zara Masood
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