Budget 2021 news – We’ll be paying off coronavirus debts for DECADES as cost soars to £407 billion, Rishi Sunak warns

CHANCELLOR RISHI SUNAK SAYS IT’S TOO EARLY TO SAY WHETHER HE SUPPORTS VACCINE PASSPORT

The Chancellor said it was “too early” to say whether he would be minded to support the rollout of vaccine passports given a review is currently under way.

Speaking to ITV’s Good Morning Britain, Rishi Sunak said: “It is a difficult and complicated question because it raises various practical, legal and ethical issues.

“We are working through those, so the Prime Minister has a committee and we have not just ethicists but doctors and business people working together to look at that particular question, to consider all the issues in the round and come up with some recommendations in a few months’ time and we will see if they can play a part.”

Asked whether he was “minded to back” so-called vaccine passports, he said: “It would be too early for me to use a phrase like ‘minded to’. It is a committee to look at the various issues that it throws up – there are some obvious challenges – some people are not able to, for health reasons, to get vaccinations.

“And then there is the practical aspect – how do we verify it, what kind of technology would one use, what circumstances would it be appropriate to use it?

HANCOCK ‘CONFIDENT’ VACCINE WILL MEAN EASED RESTRICTIONS ON DOMESTIC TRAVEL

Mr Hancock said: “I very much hope that as we are able to lift restrictions then we are all able to travel across the UK.

“I’m confident because of the vaccine we will be able to make that progress and then be able to, all of us, to travel freely wherever we are within these islands.

“One of the factors that we have to be vigilant about in that road map is the emergence of new variants, in case the current vaccines are not as effective.

“I’ve said before that I’m optimistic for a great British summer and I’m now more optimistic about having a great British summer than I have been at any time, thanks to the speed and the effectiveness of the vaccine rollout. By great British summer, I absolutely mean people being able to enjoy travel across the whole of the UK.

“The travel rules for Scotland are a matter for the Scottish Government, but I think we can all see that we can make a stride down that roadmap thanks to the speed of the vaccine rollout.”

BORIS JOHNSON ‘FEELING FULL OF BEANS’ AFTER LOSING WEIGHT

Prime Minister Boris Johnson said he is “doing all I can to lose weight” as he announced funding to help the public get “fitter and healthier”.

Mr Johnson said he has been eating fewer carbohydrates, avoiding chocolate and “no more late-night cheese”, coupled with early morning runs.

It comes as the Government announced a £100 million package to help drive down levels of obesity – which increases a person’s risk of dying from Covid-19 or severe disease, as well as a number of other health problems. Mr Johnson became unwell with Covid-19 himself last year.

In a video posted to Twitter, Mr Johnson said: “I’ve been doing a lot, in fact, everything I can, to lose weight and to feel fitter and healthier. The result is I actually have lost some weight, quite a lot by my standards, and I feel much more energetic, I feel full of beans and I thoroughly, thoroughly recommend it.

“I know there are many people in the same sort of position as I am, and I was, who want to lose weight. That’s why we’re investing now in that whole national objective.”

CHANCELLOR INSISTS FREEZING INCOME TAX THRESHOLDS IS ‘PROGRESSIVE’

Chancellor Rishi Sunak has insisted that freezing income tax thresholds is a “progressive” form of taxation amid warnings that he needs to do more to tackle the sluggish growth in living standards.

Mr Sunak said that “no one’s take-home pay that they have today is affected or lowered by this policy”, though analysis suggests many more people will be dragged into paying tax as wages increase.

Mr Sunak told Sky News: “Freezing personal tax thresholds is a progressive way to raise money. I think crucially what people need to understand is that no one’s take-home pay that they have today is affected or lowered by this policy.

“What it does do is remove the incremental benefit that they might have experienced in future as inflation fed through to their wages.

“Also crucially, those on higher incomes are affected more by this policy – it is a very progressive policy and that is something that has been noted by independent think tanks that are respected, like the Institute for Fiscal Studies and others who have made the point that the richest 20% of households, for example, will end up contributing I think 15 times more than those on the lowest incomes. That is why this is a fair way to help solve the problems that we need to.”

NO EVIDENCE CURRENT VACCINES LACK EFFECTIVENESS AGAINST KNOWN COVID VARIANTS

MHRA chief executive Dr June Raine said there is no evidence that current vaccines are lacking effectiveness against known coronavirus variants.

She said during a briefing with Health Secretary Matt Hancock: “Since December last year we have all been concerned about the appearance of variants – Kent, South Africa, more recently Brazil – and therefore we’re well-prepared to look at, when it’s needed, updates to ensure the vaccines being used in citizens are fully effective.

“Our goal is to ensure that the vaccine modifications in future that respond to the new variants can be available in the shortest possible time but without compromising in any way on safety, on quality and on effectiveness.

“What I would emphasise at the outset is that we don’t have evidence at the moment that the vaccines in use in the UK are significantly lacking in effectiveness but we are now well-prepared.”

MATT HANCOCK SAYS NEW FAST TRACK APPROACH TO APPROVING NEW COVID VACCINES

Matt Hancock has said there will be a fast-track approach to approving new vaccines for coronavirus variants

During a visit to Glasgow Lighthouse Lab, the Health Secretary said: “We will have a fast-track approach to safely approving future vaccines that work against a variant of Covid-19.

“The vaccine programme has clearly been a huge UK success story, and part of the reason that we have been able to develop the vaccines so far so quickly is because of the MHRA’s rigorous yet flexible approach, which has been based entirely on looking as quickly as possible at the safety and efficacy of vaccines.

“I’m delighted that they’re taking that same principled approach to the approval process for vaccines that may work against variants.”

RISHI SUNAK: FURLOUGH EXTENDED BEYOND JULY TO OFFER BUSINESSES ‘AN EXTRA CUSHION’

Rishi Sunak said the reason why he had extended furlough and other support past June 21 when all coronavirus restrictions are expected to have been lifted is in order to give businesses an “extra cushion”.

Speaking to ITV’s Good Morning Britain (GMB), the Chancellor said: “The approach we took with all of our support yesterday was first and foremost to make good on the promise we made a year ago, which was to do whatever it takes to support people, families, businesses through the crisis, and the Budget set that out.

“Furlough extension was a part of that, you’re right, until the end of September.

“And we did that for a couple of reasons. I wanted people to have the reassurance that we were ‘going long’, beyond the end of the road map, because of course things might change.

“We wanted to accommodate even the most cautious view of exiting from the restrictions – hopefully that won’t happen, we are making great progress, and thanks to everyone involved in the vaccination drive for making that possible.

‘SERIOUS QUESTIONS’ REMAIN ON CREDIBILITY OF PLANNED SPENDING CUTS SAYS THINK-TANK

Rishi Sunak has “big questions still to answer” with analysis suggesting more needs to be done to tackle the sluggish growth in living standards and a further potential squeeze on the public sector.

The respected Resolution Foundation said the chancellor’s cut of £4 billion a year in public spending would be “challenging to deliver”, and estimated a further £15 billion would be needed by 2025.

This sum would be required to give Mr Sunak “enough fiscal space to credibly see net debt sustainably falling in the face of future recessions”, the think tank warned.

The Chancellor pledged to build a “fairer and more just” country post Covid-19 as he announced plans to repair the nation’s finances.

These included an increase in business profits and the freezing of income tax thresholds which will see more than a million people starting to pay the levy, according to forecasters.

LABOUR ACCUSES CHANCELLOR OF ‘FAILING PATIENTS’ IN BUDGET

Labour has accused the Chancellor of failing patients due to planned cuts to day-to-day spending in the Department of Health and Social Care (DHSC).

Written Budget documents revealed that there is a planned cut of £30 billion in day-to-day spending from April of this year, falling from £199.2 billion to £169.1 billion.

NHS England will see funding fall from £147.7 billion to £139.1 billion from next year, unless ministers commit to more funding for the health service.

Shadow health secretary Jonathan Ashworth accused Rishi Sunak of failing “patients, our NHS and its staff” in Wednesday’s Budget, as analysis by the opposition party found that waiting lists have hit a “record high”

CHANCELLOR DEFENDS MOVE TO FREEZE PERSONAL ALLOWANCE AND HIGHER RATE INCOME TAX THRESHOLDS

The Chancellor has defended his Budget announcement that the Treasury will freeze the personal allowance and higher rate income tax thresholds, calling it a “progressive” form of taxation.

Rishi Sunak told Sky News: “Freezing personal tax thresholds is a progressive way to raise money.

“I think crucially what people need to understand is that no one’s take-home pay that they have today is affected or lowered by this policy.

“What it does do is remove the incremental benefit that they might have experienced in future as inflation fed through to their wages.

“Also crucially, those on higher incomes are affected more by this policy – it is a very progressive policy and that is something that has been noted by independent think tanks that are respected, like the Institute for Fiscal Studies (IFS) and others who have made the point that the richest 20% of households, for example, will end up contributing I think 15 times more than those on the lowest incomes. That is why this is a fair way to help solve the problems that we need to.”

CHANCELLOR SAYS UK ‘ONE OF THE BEST PLACES IN THE WORLD TO START AND GROW A BUSINESS’

Chancellor Rishi Sunak said: “The UK is one of the best places in the world to start, grow and list a business – and we’re determined to build on this reputation now we’ve left the EU.

“That’s why we are looking at reforms to encourage even more high growth, dynamic businesses to list in the UK.

“So it’s fantastic that Deliveroo has taken this decision to list on the London Stock Exchange.

“Deliveroo has created thousands of jobs and is a true British tech success story.

“It is great news that the next stage of their growth will be on the public markets in the UK.”

IT WILL BE JOB OF ‘MANY GOVERNMENTS’ TO PAY BACK £400BILLION OF COVID SPENDING, SAYS RISHI SUNAK

Rishi Sunak, asked about where future tax rises would come from, said it would be the jobs of “many” governments to pay back more than £400 billion of coronavirus spending.

The Chancellor told BBC Breakfast: “The shock that coronavirus has done to our economy has been significant and as I said yesterday, this won’t be fixed overnight.

“It will be the work of many years, decades and governments to fully pay all that money back. But it is important that we get our borrowing and debt under control so it stops going up even after we’ve recovered.

“And that’s what the measures we announced yesterday (will do), they will help stabilise things.

“That’s what the forecasts from yesterday show, that we stop the problem from getting worse and hopefully start improving it over the medium term.”

SUNAK GRILLED ON WHY HE IS CREATING A ‘CLIFF EDGE’ AND NOT PHASING OUT SUPPORT

Rishi Sunak, asked on BBC Radio 4’s Today programme why he is not phasing out support rather than creating a “cliff edge”, said: “Because we are taking a more generous approach and keeping it in full without phasing it out.

“It is in full all the way through to the end of September because I think that is a more generous approach.

“And it is right to also focus on all the other things that we are doing to help families in that situation and those things don’t phase out.

“The national living wage increase is something that will benefit families over the whole year, the local housing allowance uplift of £1 billion – that’s a million-and-a-half families who will get up to £600 help with their rent payments next year, 3.5 million families getting £150 for their council tax bills.

“Our Lifetime Skills Guarantee is here to stay, it is permanent, the Kickstart Scheme is going to help a quarter-of-a-million young people – many of those people will be on Universal Credit and will be able to benefit from all of these initiatives, and helping people into good-quality work is absolutely our focus.

SUNAK: NO EXTENSION TO UC BEYOND SIX MONTHS

Asked today if he will extend it beyond another six months, Mr Sunak told BBC Breakfast: “No, we put this in place at the beginning of the crisis last year to help people in the national lockdown.

“Obviously the restrictions have gone on for longer than any of us would have hoped or liked.

“But six months’ extension to the Universal Credit uplift means it will be in place well beyond the end of this national lockdown.

“And remember, it’s just one of the things we’re doing to help people.”

RISHI SUNAK CONFIRMS UNIVERSAL CREDIT WILL BE CUT BY £20 A WEEK IN OCTOBER

UC claimants will see their payments fall by £20 a week in October, Chancellor Rishi Sunak has confirmed.

The temporary boost, first implemented last year due to the coronavirus crisis, was extended by six months in yesterday’s Budget.

The government’s temporary coronavirus support for families on benefits is worth £1,040 a year and was supposed to only last a year.

Instead, claimants will continue to get the extra cash until the autumn.

However, campaigners had called for Mr Sunak to go further and said the boost should be made permanent.

RISHI SUNAK ASKED IF HE WORRIES PEOPLE ARE ‘SLIPPING THROUGH CRACKS’

Mr Sunak said: “if you look at how the government has supported the self employed, you will see it is generous.”

The hosts say there are 3.5million people have slipped through the cracks and how the system is not working for many.

RISHI SUNAK GRILLED ABOUT BUDGET ON GMB

Susanna Reid is speaking about Universal Credit uplift with the Chancellor.

There is going to be a ‘pinch point’ in the autumn, says Reid.

Mr Sunak said it is important to remember to help people who are living on the national living wage.

Reid asks why the Chancellor cannot extend the uplift further.

Mr Sunak said the national living wage is being increased and the government is providing support for low income families, as well as council tax support for 350 families.

RISHI SUNKA QUIZZED ON IF HE KNOWS MORE THAT PUBLIC DONT KNOW ABOUT

Susanna Reid has asked the chancellor if he knows something extra about restrictions as he has extended furlough until September.

“Its important that just because restrictions end, we must continue to support businesses long after the roadmap,” says Sunak.

RISHI SUNAK SPEAKING ON GMB

The Chancellor is speaking from Teeside.

He is talking about the budget.

TREASURY NORTH EMPLOYEE TOUTS DARLINGTON HAS ‘A FANTASTIC PLACE TO LIVE’

A financial boss who made the move from London to Darlington has said Treasury workers who relocate will find it a “fantastic place to live”.

Andrew Craddock, chief executive of Darlington Building Society, told the PA news agency: “I moved up two and a half years ago.

“I spent most of my career in financial services in London. I got a call from a recruiter asking me about the building society and to be honest I had never heard of Darlington. I came up for the interview and loved the place. I think its a fantastic place to live.”

Mr Craddock, who previously lived in Buckinghamshire and commuted into London, listed the things he appreciated about his new home town: “The cost of living, the affordability of housing, the transport links.

BUDGET 20201 MORTGAGE GUARANTEE SCHEME: HOW TO BUY A HOUSE WITH JUST 5% DEPOSIT

A new Government scheme will let first-time buyers struggling to secure a mortgage get on the property ladder with just a 5% deposit.

It was announced as part of the 2021 Budget, with multiple lenders to start offering 95% mortgage plans.

It means under the mortgage guarantee programme, house buyers will need just a £10,000 deposit to be able to afford a £200,000 home.

Many lenders scrapped such high loan to value mortgage deals amid fears and uncertainty over how the coronavirus crisis would impact jobs and the economy.

INFECTION DECLINE SLOWS AMID FEARS PEOPLE WILL GET ILL BEFORE THEIR JAB

The rate of decline in Covid-19 infections in England has slowed, figures suggest.

Experts urged people to stick to lockdown rules to give the vaccination programme “the best chance of working”.

One in every 213 people is still testing positive for Covid-19, the study found.

In some parts of the country the rate of decline has plateaued and in places there are hints that rates are increasing, the data suggest.

Researchers warned that if infection rates start to rise then people who are due their jab imminently may become infected.

GOVERNMENT BORROWING

Rishi Sunak warned yesterday that the virus “has done and is still doing profound damage” and it was time to start addressing the state of the nation’s finances.

Government borrowing is expected to be more than £355billion this year, representing 17 per cent of UK income and the highest level since World War Two.

The Chancellor told MPs: “Next year, as we continue our unprecedented response to this crisis, borrowing is forecast to be £234billion, 10.3 per cent of GDP — an amount so large it has only one rival in recent history: this year.”

He added: “Without corrective action, borrowing would continue at very high levels, leaving underlying debt rising indefinitely.

“Instead, because of the steps I am taking today, borrowing falls to 4.5 per cent of GDP in 22/23, 3.5 per cent in 23/24, then 2.9 per cent and 2.8 per cent in the following two years.”

BITTERSWEET BUDGET – HAVE RISHI SUNAK’S POLICIES LEFT YOUR GLASS HALF FULL?

Chancellor Rishi Sunak had a tough job on his hands with yesterday’s Budget.

He needed to make efforts to start repairing the damage done by the pandemic — but at the same time he needed to make sure Brits would not be too badly hit in the short-term given that the crisis is still ongoing.

PUT IT ON THE TAB

Rishi Sunak did all he could yesterday to lift ­spirits and see the UK through Covid — freezing booze and fuel duty, and extending furlough.

But the Chancellor’s bittersweet Budget also set out a £66billion tax raid to start paying for the pandemic — pushing the taxation burden to levels not seen since the 1960s.

Teeing up a comeback summer, he froze booze and fuel duties, extended furlough, the stamp duty and VAT holidays for pubs and restaurants and the business rates pause.

But millions more will have an income tax hangover next year and big business will see their corporation tax bill soar from 19 to 25 per cent in 2023.

Mr Sunak said last night he was going long on support, with the hefty tab only kicking in after the economy has been given time to recover from the pandemic.

The Chancellor said, thanks to the vaccine, Britain would bounce back “swifter and faster”.