In the Budget 2021, the Chancellor made a number of announcements to help businesses survive the challenging months ahead and to prepare the UK economy as it starts to unlock during the Summer.
The Chancellor stated that he would continue to do “whatever it takes” to support jobs and businesses. The Government has spent £280bn so far on Coronavirus support schemes but the damage to the UK economy remains acute. Since March 700,000 jobs have been lost and the economy has shrunk by 10% the largest fall in 300 years.
The recovery though is now expected to be faster than previous estimates in November 2020 and according to the Office for Budget Responsibility the economy should return to pre Covid-19 levels by the middle of next year, six months earlier than previous forecasts.
The Chancellor stated his first priority was to continue funding to support jobs and businesses, but he also needed to set out how public finances would be fixed and the start of building the UK’s future economy.