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Writer's picturePaul Clarke

UK Budget: A furlough extension and tax hikes

Yet more massive spending to support the UK economy....


"I said I would do whatever it takes. I have done and I will do so."


UK Finance Minister Rishi Sunak announced the country's latest economic plans on Wednesday (March 3).


The support measures include a five-month extension to a job-protecting furlough plan.


Plus a continuation of an emergency increase in welfare payments and an extension of a VAT cut for the hospitality sector.


A tax cut for home-buyers was also extended until the end of June.


There is, though, a corporation tax hike on the way for large businesses in 2023.


It will go from the current rate of 19% up to 25%, though Sunak says that will still be the lowest in the G7 group of major economies.


Sunak said in his speech the economy is likely to grow by 4% this year.


"The OBR now expect the economy to return to its pre-covid level by the middle of next year. Six months earlier than previously thought."


But he says it will still be 3% smaller in five years' time than it would have been without the damage of the last year.





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