3 Mar 2021

Budget 2021: Sunak promises giveaway now and tax hikes later

Political Editor

There are giveaways and takeaways from the Chancellor of the Exchequer, with an immediate plan to support both businesses and individuals followed by a move to claw the spending back.

Some of the main giveaway points include: A new super-deduction for business to claim back more than the cost of new investment from the taxpayer.

The furlough scheme extended until the end of September.

600,000 self-employed people who have missed out before now to get grants. The £20 temporary uplift to Universal Credit will be extended for another six months.

Those giveaways will be paid for by: Corporation tax going up from 19 to 25 per cent from April 2023.

And thresholds at which people start paying tax, and when they start paying higher rates, will be frozen for five years, meaning more people will be dragged into paying higher tax as wages increase.