Mar 2, 2021
Budget 2021: Five things to look out for
Chancellor Rishi Sunak will deliver his Budget on Wednesday, setting out the government's tax and spending plans and forecasts for the UK economy. MPs across the board say the tax, which is calculated using the value of a company's premises, is unfair and outdated. The chancellor is likely to leave the thorny question of what to do about the tax - including levying a so called "Amazon tax" on online retailers - until the autumn. According to reports, Mr Sunak is likely to announce several tax increases - although whatever he does will probably have to fit around the Conservative party's manifesto pledge not to raise income tax, national insurance or VAT. Many think he will instead raise corporation tax from its current level of 19% to 23%, which is still below the G7 average. It would be staggered over the course of the parliament, reportedly bringing in £12bn. There are also rumours he will freeze the personal income tax allowance, which usually rises in line with inflation, pushing many taxpayers into higher bands and netting HMRC about £6bn. Labour leader Kier Starmer has argued tax rises risk "Choking off" a rapid economic revival after the pandemic.
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