Rishi Sunak will also help another 600 on Wednesday000 of the new self-employed announce

Rishi Sunak will announce on Wednesday that the Treasury Department is extending its vacation program until the end of September to safeguard jobs as a fragile economy emerges from the Covid-19 emergency

In an unexpected move, the Chancellor will say that workers will be guaranteed 80% of their salaries for an additional three months after the government decides to lift all restrictions on activity in June

Sunak will also try to stave off allegations that too many people slipped through the government’s salary safety net by saying another 600000 of the newly self-employed are now entitled to state financial support

Labor said the extension should have been announced months earlier – rather than allowing struggling business owners to suffer insecurity – and that this showed that the Chancellor was only focusing on his “moment in the sun”

Before his second household – but 15 crisis-related announcement in a year in which the expenditure for pandemics already 280 billion GBP – will say Sunak will say the priority is for the economy to emerge from its third lockdown without triggering a wave of business failures

In the past few days, there have been indications from the Treasury Department that the vacation would be extended until the end of June, but Tuesday night’s surprise move will continue to support sectors like hospitality and retail, where the recovery is proving to be slow and slow could prove sketchy

“Our Covid support programs have been a lifeline for millions and have protected jobs and incomes across the UK,” the Chancellor said last night

“At the end of the tunnel there is now light with a roadmap for the reopening So it is only right that we continue to help companies and individuals in the challenging months to come – and beyond””

Under the new plan, employers are expected to pay 10% of the wages of a worker on leave in July and increase to 20% in August and September, according to Sunak, companies were asked to make a “small contribution” to the non-paid workers hours worked by their employees, but employees will continue to receive 80% of their wages until September, up to a maximum of 2Get 500 GBP

In addition, cash grants are now available under the Self-Employed Income Support System (SEISS) for those who became self-employed in 2019-20

When the self-employment system was introduced, it was based on tax returns for 2018-2019, the last year for which data was available, the Treasury Department said this resulted in many people failing to qualify

Business groups said the expansion is a relief for many. Rain Newton-Smith, chief economist at the CBI, said, “The expansion of the program will leave millions more in the works and companies will catch their breath if we carefully end the lockdown ”

But Treasury Department Shadow Secretary Bridget Phillipson said assurances should have been given many months ago – not used as a PR stunt for the budget

“Companies and workers have asked the Chancellor to reassure them – but they had to wait because he said it was not up to budget,” she said. “The announcement the night before shows that the focus is on insists that Rishi Sunak has his moment in the sun instead of protecting jobs and livelihoods ”

Additional measures to support the long-term unemployed through the Kickstart program for children under 25 and the Restart program for older workers

Sunak will say, “We are using our full fiscal firepower to protect the jobs and livelihoods of the British people”

But the Chancellor also made it clear last night that he will take action to remedy the damage to public finances caused by the pandemic once the immediate threat is over and the economy recovers, it has been widely rumored that Sunak prepare for a 19% corporation tax increase

The Ministry of Finance will be announced on 23 March to announce a series of tax consultations some have cited as a ploy to allow the Chancellor to deliver the “good news” of extending budget day support and postponing tax hike decisions until later in the year

A number of high-profile Tories have stated that moderate tax hikes are inevitable – with some warnings they must be accompanied by spending cuts – a narrative picked up by Labor

Two former cabinet ministers warned of corporate tax hikes Former Chancellor Philip Hammond warned Sunak against hitting corporate tax hikes immediately – a move Labor also opposed – but said a longer-term “reasonable, proportional” hike would be better

David Gauke, former attorney general and chief secretary of the Treasury, said Sunak should raise income tax, not corporate tax. it will unnecessarily make the UK a less attractive and dynamic place to invest, ”he told the Evening Standard
Nicky Morgan, a former Conservative chair of the Treasury Select Committee, said she expects book balancing decisions to be postponed until the fall until the Treasury can assess the state of the recovery in a new budget

“It is not intuitive for the Treasury Department to wait, but when you look at how the Office for Budget Responsibility (OBR) is forecasting, it is not yet possible to make decisions about how to balance tax increases and economic growth can look like and re-prioritize spending, ”she said

“No doubt there are people on government benches who think the tax burden is already too high. But many MPs hear from their voters that they understand that bills have to be paid. The argument will be where that falls, whether that Income grows more slowly or taxes rise – and not whether they should come at all ”

In a trace of its appearance on Commons today, the Treasury Department said the budget would have three themes: “Support, honesty and building the UK’s future economy”

The Chancellor is expected to say: “Firstly, we will continue to do all we can to support the British and businesses in this moment of crisis

“Second, as soon as we are on the recovery path, we must start fixing public finances – and I want to be honest with our plans to do so today. And third, in today’s budget, we are starting to build ours future economy ”

Vacation

World News – GB – UK budget extends vacation to end of September

Source: https://www.theguardian.com/uk-news/2021/mar/02/uk-budget-to-extend-furlough-until-end-of-september