Budget 2021: Rishi Sunak promises tax cuts by next election despite continued squeeze in the cost of living

Asia's Tech News Daily

Tax cuts will come before the next election, Rishi Sunak pledged on Wednesday as he laid out a Budget and spending review which promise a continued cost-of-living squeeze next year followed by a resurgence in earnings and public service standards.

Budget 2021: Rishi Sunak promises tax cuts by next election despite continued squeeze in the cost of living
© Provided by The i Rishi Sunak delivering the Budget in the House of Commons (Photo: UK Parliament/Jessica Taylor)

The Chancellor insisted that he remains committed to Conservative orthodoxy despite being compared to Gordon Brown for his plans to hike state spending by more than 3 per cent every year, with the tax burden reaching its highest level since the 1950s when Britain was recovering from World War II.

He took advantage of an upgrade to the economic forecasts – and the new health and social care levy – to pump another £30bn into the public sector, at the same time as promising to balance the books on day-to-day spending by the time Britain next goes to the polls. But speaking to Tory MPs shortly afterwards, Mr Sunak said that in future he would use any further fiscal headroom to reduce taxes rather than increasing spending.

The second Budget of 2021 was accompanied by a spending review which sets the amount of cash available for every department over the next three years. Each one will see a real-terms increase in funding, the Chancellor said, with the Department of Health the biggest winner thanks to the ring-faced spending raised by the health levy.

The full impact of the 1.25 per cent tax – first announced last month – has been laid bare by the Office for Budget Responsibility (OBR), which estimated that as well as hitting taxpayers directly it would depress wages by 0.5 per cent a year as businesses reduce the amount they pay to make up for the increased cost of employing each worker.

Despite the Government’s promise to drive up living standards and create a “high-wage, high-skill economy”, pay increases are forecast to be slightly lower than 4 per cent inflation next year, before rising in real terms in the following years. Mr Sunak also stopped short of intervening directly to reduce soaring energy bills, with the exception of a freeze in fuel duty for the 12th year in a row.

The Chancellor focussed his cost-of-living efforts on the lowest-paid workers, announcing a rise in the minimum wage to £9.50 an hour and a change to the rules of universal credit which means benefits claimants will be allowed to keep 45p out of every extra pound they earn, up from the previous 37p. He said: “This is a £2bn tax cut for the lowest-paid workers in the country. It supports working families, it helps with the cost of living, and it rewards work.”

Mr Sunak concluded his speech to MPs with a promise to start reducing the size of the state after Government spending rose steeply in the wake of the Covid-19 crisis. He told the Commons: “As we look towards the future, I want to say this simple thing to the House and the British people – my goal is to reduce taxes. By the end of this Parliament, I want taxes to be going down not up.” The Treasury has refused to explain which taxes are going to be cut first but suggested that those levied on “working people” would be the most obvious contenders.

Paul Johnson of the Institute for Fiscal Studies said: “The Budget and spending review are much more similar to Gordon Brown’s than to George Osborne’s. To help fund the spending increases, the Chancellor confirmed big tax rises: this year has seen the biggest set of tax-raising measures

since 1993. It now looks like a large part of those tax rises is to be spent rather than being entirely used to reduce borrowing as originally announced.”

Critics accused Mr Sunak of failing to mitigate the impact of the £20-a-week cut to universal credit and ignoring the scale of the climate crisis with new policies including a halving of the tax paid on domestic flights.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

RateGain Travel IPO subscribed 5.13 times on final day, QIB portion booked 1.65 times

© Sunil Matkar RateGain Travel IPO subscribed 5.13 times on final day, QIB portion booked 1.65 times The public offer of software-as-a-service company RateGain Travel Technologies has been subscribed 5.13 times, ... Read more »

David Mabuza faces questions in Parliament on land reform, Eskom

© Provided by Independent Online (IOL) Cape Town – Deputy President David Mabuza is facing questions in Parliament just days after the National Assembly failed to pass a Bill to ... Read more »

Liverpool's Possible Round of 16 Champions League Opponents

© Photo by Piero Cruciatti/Anadolu Agency via Getty Images Now that the UEFA Champions League Group Stage has concluded, we can look forward to the round of 16. The Reds ... Read more »

Jennifer Lawrence sustains minor injuries after glass explosion stunt for Netflix's Don't Look Up goes wrong

© Getty Images Jennifer Lawrence and David O Russell could be collaborating again on a biopic about the life of US single mum turned entrepreneur Joy Mangano – Getty Images ... Read more »

Robbie Shakespeare dies aged 68

Robbie Shakespeare has died aged 68. © Bang Showbiz Robbie Shakespeare has died aged 68 The Jamaican reggae artist – who is best known as one half of rhythm section ... Read more »

Damon Albarn considered political career before Tony Blair meeting

Damon Albarn was put off a career in politics by a meeting with Tony Blair. © Bang Showbiz Damon Albarn considered a political career The Blur singer has recalled a ... Read more »

Boris Johnson in focus as party problems persist and rules return

Boris Johnson features on the front page of every national newspaper on Thursday, with most depicting a premier under pressure due to his handling of developments over allegations of a ... Read more »

NBA roundup: Nikola Jokic powers Nuggets to OT win over Pelicans

Nikola Jokic had a triple-double and scored 11 of his game-high 39 points in overtime as the Denver Nuggets beat the host New Orleans Pelicans 120-114 on Wednesday. © Reuters/Stephen ... Read more »

Elgar Parishad case: Accused Sudha Bharadwaj released from jail

Activist Sudha Bharadwaj, an accused in the Elgar Parishad-Maoist links case, was on Thursday released from a prison here on bail, after spending three years in jail. Bharadwaj was granted ... Read more »

Man Utd, Chelsea and Tottenham are Premier League's biggest overachievers this season

When a manager gets sacked, it’s usually because they’re perceived to have underachieved. Several Premier League bosses have got the chop this season, including, most notably, Ole Gunnar Solskjaer at ... Read more »

Gary Rowett reveals talks with Millwall player over new contract

© Provided by Football League World Tom Bradshaw n Millwall boss Gary Rowett has revealed that he has personally spoken to in-form forward Tom Bradshaw about staying at the club ... Read more »

Less than 2% of companies get A grade on climate crisis disclosures

(Jane Barlow/PA) (PA Archive) The number of companies considered leaders on climate crisis action and transparency has fallen sharply this year, according to a global study of more more than ... Read more »

Sargeant handed F1 test debut with Williams in Abu Dhabi

Sargeant, 20, linked up with Williams’ young driver academy in October, and made his Formula 2 debut in Jeddah last weekend with HWA. © Williams Logan Sargeant, Williams Driver Academy ... Read more »

Teenager, 17, admits to horrific one-punch attack that put a talented soccer player, 25, in hospital fighting for his life for 82 days - even getting messages of support from Ronaldo

17-year-old boy pleads guilty to horrific one-punch attack on Danny Hodgson, 25 The September 5 attack left Mr Hodgson fighting for his life in intensive careHis family confirmed Mr Hodgson has been moved to Fiona Stanley HospitalThey said he will now learn how to 'swallow, drink, eat and eventually talk again'  Read more »

Barca's Europa League nightmare is no longer a bad dream

© Photo by Alexander Hassenstein/Getty Images After starting the game in Bavaria reasonably well, it was a shame that such a poor goal from Thomas Muller was the pre-cursor to ... Read more »

No Omicron case detected in latest genome sequencing –DOH

DOH Building The Department of Health (DOH) reported on Thursday that no case of Omicron COVID-19 variant was detected from the latest whole genome sequencing conducted. The DOH said the ... Read more »

Delhi court rejects suit seeking restoration of deities inside Qutub Minar complex, refers to Ayodhya judgment

Referring to the judgment in the Ayodhya land dispute case, a Delhi court has rejected a civil suit seeking restoration of Hindu and Jain deities and right to worship within ... Read more »

Rio Ferdinand names two Man Utd stars who give Rangnick a headache in Young Boys draw

© Getty Images Pundit Rio Ferdinand working for BT Sport in 2019 Ralf Rangnick will have been impressed by just two Manchester United stars in Wednesday’s stuttering 1-1 Champions League ... Read more »

CDS chopper crash: Lone survivor Group Captain Varun Singh being shifted to Bengaluru, says his father

IAF Group Captain Varun Singh, the lone survivor of the helicopter crash that killed Chief of Defence Staff Gen Bipin Rawat and 12 others, is being shifted to Bengaluru from ... Read more »

Hackers make some Vestas' data public after ransomware attack

FILE PHOTO: A wind turbine is silhouetted on a mountain on the island of Evia COPENHAGEN (Reuters) – Personal data stolen from wind turbine maker Vestas by hackers in a ... Read more »

Chopper crash: IAF recovers critical equipment of Mi-17V5 helicopter from site

© Provided by The Statesman Chopper crash: IAF recovers critical equipment of Mi-17V5 helicopter from site The Indian Air Force (IAF) officials on Thursday recovered critical equipment of the IAF ... Read more »

Japanese Billionaire Blasts Off for International Space Station Aboard Russian Spacecraft

A spacecraft carrying Japanese billionaire Yusaku Maezawa to the International Space Station successfully launched on December 8 from the Baikonur Cosmodrome in Kazakhstan. Maezawa was joined aboard the Soyuz MS-20 ... Read more »

How Bipin and I Prepared Brief for Army Chief on CBMs with China in Less Than 2 Hours

© Provided by News18 How Bipin and I Prepared Brief for Army Chief on CBMs with China in Less Than 2 Hours The whole nation was shocked to hear the ... Read more »

Don't Look Up: Leonardo DiCaprio and Jennifer Lawrence must save Earth in first trailer

© Netflix Jennifer Lawrence and Leonardo DiCaprio in ‘Don’t Look Up’ – Netflix Netflix has unveiled the first trailer for their star-studded asteroid comedy Don’t Look Up. Jennifer Lawrence and ... Read more »

Dr. Martens flags shipping delays in U.S. unit, posts higher profit

1 / 2Dr. Martens flags shipping delays in U.S. unit, posts higher profitFILE PHOTO: A woman walks past the window of a “Dr Martens” shoe shop amid the coronavirus disease ... Read more »

Semua ADUN Sabah dapat peruntukan RM2 juta tahun depan, kata Hajiji

© Provided by Free Malaysia Today Hajiji Noor berharap ADUN akan menggunakan peruntukan dengan sebaik-baiknya bagi membantu rakyat atau menangani isu di kawasan masing-masing. (Gambar Bernama) KOTA KINABALU: Ketua Menteri ... Read more »

Covid LIVE: Warning Omicron cases could hit 1M in month -but Britons vow to defy new rules

Speaking at the House of Commons on the Omicron Coronavirus variant, Health Secretary Sajid Javid said despite there currently being just 568 confirmed cases, “the estimated current number is “probably ... Read more »

Covid live: UK could see ‘about 1m infections' in weeks; Japan cases buck trend across Asia

LIVE – Updated at 08:14 © Photograph: Henry Nicholls/Reuters Pedestrians wear masks as they walk through London’s Oxford Circus as British prime minister Boris Johnson rushes in new Covid-19 restrictions. ... Read more »

Today's rugby headlines as ex-England coach deals with Eddie Jones rift rumours and Irish legend questions anthem

Here are the latest rugby headlines on Thursday, December 9. John Mitchell breaks silence on England exit Former England assistant coach John Mitchell has addressed why he quit Eddie Jones’ ... Read more »

Tech firms say EU rules should ensure they are regulated in their bases

By Foo Yun Chee © Reuters/Yves Herman FILE PHOTO: EU flags flutter in front of the European Commission headquarters in Brussels BRUSSELS (Reuters) – Proposed European Union rules targeting tech ... Read more »

Venkatesh, Katrina Kaif's Co-Star From Her Telugu Debut, Back in Bollywood After 25 Years

© Provided by News18 Twenty-five years after he last featured in a Bollywood film, Telugu superstar Venkatesh Daggubati will soon be seen in a Hindi film alongside Salman Khan. Interestingly, ... Read more »

Tennis' golden girl scores another win! Emma Raducanu, 18, is unveiled as Evian's new global brand ambassador - after being snapped up by luxury labels Dior and Tiffany & Co.

Emma Raducanu, 18, has been signed as new global brand ambassador for Evian Tennis star has cemented her place as a household name with success this yearThe teenager has also been named ambassador for Dior and Tiffany&Co Comes after she revealed she had taken her first holiday in seven years   Read more »

Chelsea stars are 'BEWILDERED' and 'unhappy' that Cesar Azpilicueta's contract has not been extended... with the 32-year-old being 'watched' by Barcelona and Atletico Madrid ahead of becoming a free agent

Chelsea captain Cesar Azpilicueta finds himself out of contract in the summerHe is drawing interest with Barcelona and Atletico Madrid 'monitoring' himSome of his Chelsea team-mates have reportedly been left 'bewildered' by it all  Read more »

Former Tory councillor who ran over and killed his wife following an argument tells French trial it was an accident and he loved her as he denies driving over her as she tried to stop him leaving

David Turtle, 67, appeared in court it Cahors, France, on Wednesday accused of aggravated manslaughter over the death of wife Stephanie in 2017 Stephanie, 50, died being run over by Turtle's car in the driveway of their home  Prosecutor allege that Turtle either knew she was in the driveway when he pulled away after a row or else placed her unconscious body in front of the car But defence lawyers say death was an accident, with Turtle telling the court: 'I loved my wife. What has happened has broken my heart'  Read more »

LAWRENCE BOOTH: No balls, dropped catches, fluffed run-outs, a spinner MAULED and bowlers who are not fully fit... Add in that first day batting collapse and England already resemble a RABBLE

England found fresh ways of messing things up on the second day in BrisbaneAustralia recovered from a spot of bother at 195 for five to reach 343 for seven But just as worrying for Joe Root was the state of England's bowling attack Ben Stokes failed to bowl between lunch and tea while Ollie Robinson went off This series is only two days old, but already England look a rabble in the Ashes Read more »

Plus-size 14st model claims male pharmacist told her 'you're too big for one morning after pill' and doubled her emergency contraception - causing thrush, vaginosis and an agonising 9-day period

Lucy Bennett, from London, was told she was 'too big' for one morning after pillPharmacist said she should take two pills immediately to prevent pregnancy Explained: 'What transpired was a kick in the gut to my mental health, thrush, vaginosis and the WORST period of my entire life'Nurse later told her she had been prescribed the double dose incorrectly  Read more »

Sonakshi Sinha wants to congratulate Katrina Kaif-Vicky Kaushal in person after wedding: Interview

Within a few hours, Katrina Kaif and Vicky Kaushal will officially become wife and husband. Not just their fans, but the couple’s friends from the industry are also excited and ... Read more »

Russia Launches Japanese Billionaire Into Orbit, Rebooting Space Tourism

On Wednesday, Russia restarted its space tourism program after more than a decade by sending Japanese tycoon Yusaku Maezawa to the International Space Station. He is also the first paying ... Read more »

New cards from Pokémon OCG ‘Start Deck 100' revealed

© Provided by Dot Esports More new cards from the upcoming range of ready-to-play Pokémon OCG decks ‘Start Deck 100’ have been showcased. In a post by PokeBeach, a pair ... Read more »

I call myself the catfish queen… my transformation is so good people think I'm Gwen Stefani after I've put make-up on

MAKE-UP can make us feel more confident and attractive even on our most insecure days. And one woman has proved the power of cosmetics by showcasing her incredible transformation in ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic