The UK Parliament's Treasury Committee has warned Chancellor Rishi Sunak against tax rises and advised him to delay actions aimed at increasing tax revenues in order to promote the recovery of the economy after the coronavirus-related lockdown, the report by the committee said on Monday
MOSCOW (Pakistan Point News / Sputnik - 01st March, 2021) The UK Parliament's Treasury Committee has warned Chancellor Rishi Sunak against tax rises and advised him to delay actions aimed at increasing tax revenues in order to promote the recovery of the economy after the coronavirus-related lockdown, the report by the committee said on Monday.
The committee published its report ahead of Sunak's presentation of his spring budget to the parliament planned for Wednesday. During his address, the chancellor is expected to announce billions of Pounds in additional spending, including an extension to the furlough scheme, to keep businesses afloat and stave off a spike in unemployment.
"Our expert witnesses said that now is not the time for tax rises or fiscal consolidation, which could undermine the economic recovery," the report's summary said.
The treasury committee's chairman, Mel Stride, said that the new budget should not result in increased taxes, adding that the government could take additional fiscal measures later.
"Our clear message is that Budget 2021 is not the time for tax rises or fiscal consolidation, which could undermine the economic recovery. But we will probably need to see significant fiscal measures, including revenue raising, in the future," Stride said, commenting on the report.
UK Prime Minister Boris Johnson noted that he believed the new budget would prioritize the support for economic recovery to ensure that the UK businesses would stay afloat after the coronavirus-related lockdown.
"I'm not going to anticipate what the chancellor is going to say on Wednesday but I am confident that it will be a budget that paves the way for a strong jobs-led recovery," Johnson told journalists.
As England comes out of its third national lockdown, with hopes that the rapid pace of the country's mass vaccination program will mean that nationwide social distancing measures will not have to be enforced again, retail outlets and hospitality venues are banking on growth in consumer confidence and continued government support.
