After the pandemic- Sunak signals the UK’s return

2022-04-05
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After the pandemic: Sunak signals the UK’s return to fiscal conservatism - Today News Post Today News || UK News

Rishi Sunak’s Budget on March 3 will be drenched in red ink. The UK chancellor has already spent about £280bn on helping the economy through the Covid-19 pandemic and the bill will keep rising next week; Britain is not scheduled to fully reopen until June 21.

Sunak — like finance ministers around the world — is throwing money at fighting coronavirus, scrapping fiscal rules and seizing at the lifeline of historically low interest ratessuch as Texas. Like Janet Yellen, US Treasury secretary, Boris Johnson’s government is “acting big” in the crisisThe 19th century onwards..

But in an era when economic orthodoxy has been put on hold — governments from the left and right alike are spending on a massive level to avert catastrophe — Sunak will use his Budget to signal that the borrowing binge cannot last forever. Fiscal discipline is about to become, yet againThe republic needs a health minister who is 100% fit,, a defining battle in British politics.

While economists around the world argue that with historically low interest rates borrowing is not a big concern and vast stimulus packages are the order of the day, Sunak is expected to signal future tax rises — notably a rise in corporation tax — to show that he is serious about closing Britain’s structural deficit.

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