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Watch live as chancellor Rishi Sunak announces new budget for Covid ‘next stage’
Rishi Sunak has begun announcing this year’s Budget in the House of Commons in which he will unveil the extension of the furlough scheme, until the end of September, and ultra-low mortgage deposits.
The chancellor will also outline a three-point plan to support people through what the government hopes will be the final months of coronavirus restrictions.
He told MPs more than 700,000 people have lost their jobs since March 2020 and the economy has shrunk by 10 per cent, the largest fall in more than 300 years.
Speaking to the Cabinet ahead of the announcement, Mr Sunak said the pandemic “has hit our economy hard” and “we must be honest” about what that meant, but “we can be optimistic about the recovery”, according to No 10.
Paul Johnson, director of the Institute for Fiscal Studies, said he was not expecting Mr Sunak to announce tax rises. “I expect some tax rises, but not this year, in the next two or three years,” he told BBC Radio 4’s Today programme.
Sunak: Stamp duty ‘holiday’ extended to end of June
The stamp duty holiday for housebuyers is being extended for a further three months until the end of June, Rishi Sunak has announced.
Purchases up to £500,000 will continue to be free from the tax – and homes bought up to a value of £250,000 until the end of September.
Deputy political editor Rob Merrick reports:
Sam Hancock3 March 2021 12:58
‘New restart grant’ will help businesses reopen in April
Rishi Sunak said a “new restart grant” will be provided in April to help businesses reopen.
He told MPs: “Non-essential retail businesses will open first, so they’ll receive grants of up to £6,000 per premises.
“Hospitality and leisure businesses, including personal care and gyms, will open later, or be more impacted by restrictions when they do, so we’ll give them grants of up to £18,000.
“That’s £5bn of new grants, on top of the £20bn we’ve already provided.”
Sam Hancock3 March 2021 12:55
VAT cuts for hospitality and tourism sectors extended
Political correspondent Ashley Cowburn reports:
Rishi Sunak has announced the government’s VAT cut for the hospitality and tourism industries will be extended for six months until 30 September.
The government first announced the cut to 5 per cent last summer, applying to the hospitality industry, hotel and holiday accommodation and admission to certain attractions, as restrictions were eased.
Sam Hancock3 March 2021 12:52
GDPR will be back to pre-Covid peak in midd-2022, Sunak says
Rishi Sunak said Covid-19 has done “profound damage” to the economy and the forecasts make clear that “repairing the long-term damage will take time”.
But he also told ministers the Office for Budget Responsibility (OBR) sees a “swifter and more sustained recovery” than it expected in November.
Mr Sunak said it is now thought UK GDP will be back to its pre-crisis peak in mid-2022, six months earlier than it previously expected.
Economics editor Ben Chu reports:
Sam Hancock3 March 2021 12:49
Chancellor outlines three-part plan for Budget
Rishi Sunak said it will take the UK and the whole world a “long time to recover from this extraordinary economic situation”, telling MPs: “But we will recover.”
The Chancellor said more than 700,000 people have lost their jobs since March 2020 and the economy has shrunk by 10 per cent, the largest fall in more than 300 years.
He told the Commons: “First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis. Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that. And, third, in today’s Budget we begin the work of building our future economy.”
Sam Hancock3 March 2021 12:45
Sunak announcing new Budget in Commons
Rishi Sunak has begun announcing this year’s Budget in the House of Commons.
Sam Hancock3 March 2021 12:40
PM attacks Starmer for defending ‘interests of people of Yemen’
The Mirror’s political correspondent Lizzy Buchan reports the following from PMQs:
Sam Hancock3 March 2021 12:23
Sunak to relocate hundreds of jobs from London to Darlington
Hundreds of jobs look set to be relocated from London to Darlington under Rishi Sunak’s Treasury North project.
In a video to his department’s civil servants, the chancellor said that after “a lot of thought and energy”, the new economic campus would be in the north east market town.
Mr Sunak said he was “really excited” about the decision, according to the recording of the message which has been shared on social media.
Civic leaders across the North had made overtures in recent weeks for the chancellor to send Treasury jobs their way and Darlington was among the favourite places for the move.
Mr Sunak’s huge Richmond constituency in North Yorkshire lies south of Darlington, which has strong transport links and voted Tory at the 2019 general election.
Sam Hancock3 March 2021 12:18
Why is furlough being extended until September?
Rishi Sunak will announce the extension of his coronavirus furlough scheme in Wednesday’s Budget.
The phased-out extension until the end of September will guarantee workers 80 per cent of their salaries, with employers set to contribute 10 per cent toward the total in July and 20 per cent in August and September.
But why is the scheme going to run beyond the end of the government’s lockdown-easing roadmap for England, which envisages the lifting of all social restrictions by 21 June?
Jon Sharman has the full report:
Sam Hancock3 March 2021 12:15
PMQs getting underway
Prime Minister’s Questions is getting underway in the Commons now.
It will be followed by Rishi Sunak’s budget statement to MPs at 12.30pm.
Tom Batchelor3 March 2021 11:59
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