UK economy not hit as hard by COVID as expected: Chancellor Sunak

28 Oct '21

2 min read

Pic: GOV.UK

Painting a positive picture of the health of the UK economy as it emerges from the pandemic, chancellor of the exchequer Rishi Sunak presented the annual budget in the House of Commons yesterday, setting out the government's tax and spending plans for the year ahead. He said the UK economy had not been hit as hard by the pandemic as expected earlier.

UK economy is forecast to return to pre-COVID levels by next year and government plans are focused on the ‘post-COVID’ era, and would pave the way for an "economy of higher wages, higher skills, and rising productivity", Sunak said.

He announced a 50 per cent business rates discount for the retail sector in England in 2022-23, up to a maximum of £110,000 and promised more frequent revaluations and more money for business rate cuts. He also promised tax breaks for firms that make improvements to their properties from 2023.

Inflation in September was 3.1 per cent and is likely to rise to average 4 per cent over next year, according to the office of budget responsibility (OBR).

Annual growth is set to rebound by 6.5 per cent this year, followed by 6 per cent in 2022.

"Employment is up. Investment is growing. Public services are improving. The public finances are stabilising. And wages are rising," Sunak told MPs.

Unemployment is expected to peak at 5.2 per cent next year, lower than 11.9 per cent predicted earlier.

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