Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Budget 2021: Chancellor Rishi Sunak denies raising taxes to cut them before next election to win votes - but says reducing burden is 'goal'

Budget 2021: Chancellor Rishi Sunak denies raising taxes to cut them before next election to win votes - but says reducing burden is 'goal'

In his budget, the chancellor promised plans to build "a stronger economy for the British people" after the coronavirus crisis - as he cut alcohol and air passenger duties and lowered the Universal Credit taper rate amid the looming threat of inflation.

Rishi Sunak has denied he raised taxes in the autumn Budget so that he can cut them again ahead of the next general election in order to win more votes - but insisted he will aim to bring the tax burden down before then.

The chancellor said the rises announced in his budget last month must be seen in the context of the public services being delivered following the coronavirus pandemic and told MPs that people's quality of life can be boosted by higher taxes.

It comes after Mr Sunak hiked the tax burden on Britons to its highest level since the Labour government led by Clement Attlee in the 1950s.

The chancellor delivered his budget in the Commons last week


Addressing the Commons Treasury Committee on Monday, the chancellor said "voluntarily" raising taxes would be "the last thing" he would do, and that he took the measures "to fund what we needed to".

Delivering his budget last Wednesday, Mr Sunak said it had been necessary for the government to take "corrective action" due to impact the pandemic has had on the economy.

And reiterating this point during a session of the Commons Treasury Select Committee on Monday, the chancellor said the purpose of raising taxes is to "fix the damage that coronavirus has done".

Among the tax increases, National Insurance contributions will rise by 1.25% from next April to help pay for the NHS and social care system.

"We can look at the taxes and, yes, people are paying more, they're going to pay the new health and social care levy, no-one is pretending otherwise, that takes money from people, that's why in an ideal world I would prefer not to have to put taxes up on people," Mr Sunak told MPs.

"But you do get something for that money. It's all very well to just look at the taxes without looking at what you're getting.

"So, you can talk about living standards by just looking at the tax side, I think that's probably slightly unfair because people's quality of life is also influenced by the quality of the public services that they get."

Mr Sunak defended hiking the burden on Britons to a level not seen since the 1950s


His comments come as disquiet grows among some Conservative MPs over the fact that rising prices have left many families facing a potential cost-of-living squeeze.

But Mr Sunak said "the reason the tax burden is very high is because we're spending a lot on lots of different things".

He continued: "Believe me, the last thing I would do is voluntarily raise taxes. We've had to do that to fund... what we needed to do, right?"

The chancellor also pledged to pursue his aim of bringing taxes down again.

Mr Sunak said it had been necessary for the government to take 'corrective action' due to impact the pandemic has had on the economy


"That's very much my goal, my mission, over the remainder of this parliament, and we took a step in that direction at budget," he told MPs.

After delivering his budget, Mr Sunak told MPs that the measures he put in place to protect jobs at the start of the pandemic meant the economy was now recovering strongly and unemployment is far lower than many had feared.

The Office for Budget Responsibility (OBR) now expects the UK's economic recovery from the COVID pandemic to be "quicker" than previously thought, Mr Sunak told MPs, with growth revised up from 4% to 6.5% for this year.

In 2022, the OBR expects the UK economy to grow by 6%, and 2.1%, 1.3% and 1.6% over the following three years.

And it has also revised down its estimates of long-term "scarring" to the UK economy of the COVID crisis.

Delivering his budget, the chancellor also told the Commons that the OBR expects a lesser peak of unemployment, of 5.2%, which means "over two million fewer people out of work than previously feared".

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
×