British Chancellor of the Treasury, Rishi Sunak, has announced a extension of measures to alleviate the effects of the economic crisis of the pandemic in the UK economy. As anticipated, the Employment Regulation Records (ERE) and Covid checks are extended until the end of September. During his appearance, the report of the Office of Budgetary Responsibility (OBR) was also made public, which forecasts a growth of 4% in 2021.
The OBR foresees a "faster and more sustained recovery" than expected in NovemberSunak explained. The forecast is that the economy return to its pre-crisis level by the middle of next year, six months ahead of schedule. But five years from now, the agency continues to expect the economy to remain 3% below what it would have grown under normal circumstances. The forecasts are for an advance of 7.3% in 2022, and then 1.7%, 1.6% and 1.7% in the following years.
Among the announced measures, the payments "to support low-income households"Specifically, "the universal credit increase of £ 20 a week will continue for another six months, well beyond the end of the national shutdown," Sunak said. The cost of the £ 20 weekly increase has been estimated at about £ 6 billion a year. Likewise, the country will expand its employment protection program -whose cost is estimated at 70,000 million pounds in its first 13 months- for five more months, until the end of September, and will also extend the aid to the self-employed.
Sunak has detailed another £ 5 billion ($ 7 billion) line of additional grants to help businesses affected by the pandemic shutdown. Shops, bars, clubs, hotels, restaurants, gyms and hair salons will be among the almost 700,000 companies that may receive new direct grants cash up to £ 18,000.
Among other measures, it also highlights that UK will increase corporate tax to mitigate the skyrocketing debt due to the pandemic.
"This budget faces the moment with a three-part plan to protect British jobs and livelihoods," the Chancellor announced. First, "we will continue to do whatever it takes to support the British people and business in this time of crisis"He said." Second, once we are on the road to recovery, we will have to start fixing public finances, and I want to be honest today about our plans to do so. And third, in today's Budget we begin the work of building our future economy. "