The Budget 2021 LIVE – Rishi Sunak to reveal whether Universal Credit, Stamp Duty & furlough will be extended this week
THERE will be major Universal Credit, stamp duty and furlough updates this week when Rishi Sunak unveils the UK's 2021 Budget.
The Chancellor will reveal the country's spending plan on Wednesday – the first since coronavirus' devastating impact on the economy became clear and the first since the Brexit transition period came to an end.
He will outline his plan to rescue the UK, spelling exactly what areas of British life will see a spending boom and the ways in which hardest hit citizens will be supported by the Government.
More support for workers, struggling families and businesses is on the cards for Sunak, along with tax hikes to cover the cost of the schemes.
Sunak has put Britain's beleaguered high streets at the heart of his economic plans, promising a £5bn lifeline for bricks-and-mortar shops and pubs.
Meanwhile there could be a new levy for online retailers – though experts have previously warned this could be passed on to consumers in the form of higher prices.
The Budget is due to take place at around 12.30pm on Wednesday, once Prime Minster's Questions ends in the House of Commons.
- Joseph Gamp
BORIS JOHNSON DEFENDS GOVERNMENT MEASURES TO PREVENT VARIANTS ENTERING BRITAIN
Boris Johnson has defended the Government's measures to prevent new variants being imported into the country, despite the detection of cases of the Brazilian strain of coronavirus.
The Prime Minister told reporters: "We have got one of the toughest border regimes anywhere in the world for stopping people coming in to this country who may have variants of concern."
- Joseph Gamp
WATCH: CHANCELLOR RISHI SUNAK WILL EXTEND VAT CUT ON PUBS
Chancellor Rishi Sunak will extend VAT cut on pubs
- Joseph Gamp
LABOUR DEMANDS STRICTER MEASURES AT BORDER IN LETTER TO PRITI PATEL
Labour's Nick Thomas-Symonds said he has written to Home Secretary Priti Patel calling for stricter measures at the border, in light of the Brazilian variant being discovered in the UK.
The shadow home secretary said in the letter that "people in the UK are being put at risk" as he asked what measures were being taken to contact those who had been on the same flight as one of the cases.
"This is unforgivable incompetence from the UK Government," Mr Thomas-Symonds said.
"Despite being warned time and time again, they have failed to act to protect our borders against emerging Covid variants and could put at risk the gains from the vaccine.
"People will be appalled to hear someone with the Brazilian variant cannot be identified, raising questions about how many others may have been missed by quarantine measures. There is no excuse for continuing to ignore Labour's call for a comprehensive hotel quarantine system."
- Joseph Gamp
WHAT ARE THE CORONAVIRUS VARIANTS AND WHERE HAVE THEY COME FROM?
- Joseph Gamp
TUC ISSUES WARNING OVER 'WRECKING BALL' TO 'GREEN' JOBS
Withdrawing hundreds of millions of pounds from the Government's Green Homes Grant scheme will take "a wrecking ball" to jobs, the TUC is warning.
The union organisation said planned cuts to the scheme will mean a failure to deliver promised 100,000 new jobs.
Over half of those who have found employment through the scheme could be laid off, it was warned.
The TUC said its analysis revealed that 14,500 jobs have been created so far through the scheme, which provides funding for retrofitting homes to make them more environmentally-friendly.
The Government has been criticised for planning to cut funding from its flagship green initiative.
- Joseph Gamp
CHANCELLOR TO TAKE QUESTIONS STRAIGHT AFTER BUDGET STATEMENT FOR FIRST TIME EVER
Chancellor Rishi Sunak will answer questions from the public and media on Wednesday afternoon following his Budget statement.
He said: "This Wednesday, in a Budget first, I will be taking questions from the public and the press straight after my statement."
The event will take place at 5pm on Wednesday.
- Joseph Gamp
BUDGET 2021: KEY POINTS EXPLAINED AHEAD OF WEDNESDAY’S ANNOUNCEMENT
- We’ve put together a guide to what changes to Universal Credit may be announced in the upcoming Budget.
- Pensions could be a top target for a tax raid in the Budget, here are five potential changes that could hit your retirement pot.
- Here’s everything expected to be announced by Mr Sunak in his Budget speech.
WHEN IS THE BUDGET 2021?
The Budget is just days away, and Chancellor Rishi Sunak will make announcements about taxes and spending.
We take you through everything you need to know about the upcoming statement, which will affect the cash in your wallet.
Read our handy guide ahead of Wednesday’s Budget here.
HOUSEHOLDS' CONSUMER CREDIT BORROWING SHRINKS AT FASTEST RATE ON RECORD
Households' consumer credit borrowing, including credit cards, personal loans and overdrafts, shrank at the sharpest annual rate on record in January, Bank of England figures show.
Consumer credit borrowing contracted by 8.9% annually, marking a new low since records started in 1994.
The decline reflects less new borrowing taking place. Households collectively made £2.4 billion-worth of net consumer credit repayments in January, the largest net repayment since May 2020. £2.2 billion of the total was repayments made on credit cards.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: "This lockdown has provided a shot in the arm for saving, switching, and debt repayment. The average figures look promising, but are hiding an awful lot of pain.
"Spending every waking second at home, either coping with loneliness or putting up with demanding families, might have driven many of us to the brink of our emotional resilience, but for an awful lot of people, it has helped them spend less, save more, and build their financial resilience. Saving and debt repayments both shot up in January."
- Joseph Gamp
DISTRIBUTION OF JOHNSON & JOHNSON'S COVID-19 VACCINE BEGINS
Drug distributor McKesson Corp said on Monday it had begun distribution of Johnson & Johnson's COVID-19 vaccine.
- Joseph Gamp
UK FACTORY OUTPUT SLOWS IN FEBRUARY AMID BREXIT AND COVID SUPPLY CHAIN WOES
UK factory output last month grew at its lowest level since May as manufacturing firms were weighed down by supply chain disruption.
The data came as the closely-followed IHS Markit/CIPS Purchasing Managers' Index (PMI) – which tracks output as well as new orders, supply times, input costs and employment – hit 55.1, up from 54.1 in January.
Any score above 50 is seen as a sector in growth.
Experts behind the report said the increase in the index was driven by higher raw material costs and longer delays, which would normally be a sign of increased demand.
However, firms said that coronavirus and Brexit complications have caused delays within supply chains which have impacted upon trade.
- Joseph Gamp
CALL FOR ICU BEDS REVIEW AMID CONCERNS SOME REGIONS HAVE 'INSUFFICIENT CAPACITY'
The NHS in England has "insufficient" intensive care beds, hospital leaders have said.
NHS Providers, which represents NHS trusts, said the pandemic has highlighted that there is not enough critical care capacity in the health service.
It said that England is "towards the bottom" of the league table for critical care beds, falling behind Germany, the US, France, Italy, Australia and Spain.
The organisation's chief executive said that it is "neither safe nor sensible" to increase capacity of intensive care beds "at the drop of a hat" as he called for a review into the critical care system going forward.
Chris Hopson also drew attention to regional disparities, with the East of England, South West and South East in particular falling short.
- John Hall
BUDGET 2021: £1.65BN BOOST TO HELP GET ADULT VACCINATED FOR COVID THIS SUMMER
The UK's coronavirus vaccine rollout will receive a £1.65 billion boost to help it meet the target of offering a dose to every adult by July 31.
Chancellor Rishi Sunak will use his Budget on Wednesday to detail the plan for the new cash to aid the programme, which is a key factor in successfully easing lockdown restrictions.
Mr Sunak will also divert £22 million to fund a "world first" trial to test if different vaccines can be used together, or if a third dose is effective, the Treasury said.
NHS England has begun inviting 60 to 63-year-olds to book jabs, with nearly 20 million people across the UK having received a vaccine.
Ahead of his Commons speech, Mr Sunak said it was "essential we maintain this momentum", adding: "Protecting ourselves against the virus means we will be able to lift restrictions, reopen our economy and focus our attention on creating jobs and stimulating growth."
- Joseph Gamp
WALES FIRST MINISTER 'WORRIED' OVER PM'S AIM TO BRING INTERNATIONAL TRAVEL BACK IN MAY
Wales First Minister Mark Drakeford said he had "worries" about Boris Johnson's comments that international travel could return in May and that he would instead "build the walls higher for now" to prevent bringing in coronavirus variants to the UK.
Mr Drakeford told a virtual meeting with Welsh businesses and Labour leader Sir Keir Starmer: "It worries me hugely to hear the Prime Minister say that he intends to reopen international travel in May of this year.
"Our September in Wales was made far more difficult by the fact that we had a big importation of the virus from France, Spain, Greece, Bulgaria, Turkey. Every day I will be reading of new outbreaks of people who have gone away, caught the virus and brought it back with them.
"If ever there was a year to be staying at home and to be enjoying all the fantastic things Wales has to offer, this must be it.
"I would build the walls higher for now against the risk that we would bring into this country the variants that could be brewing in any part of the world, and could then put at risk all the careful work we have done to try and keep Wales safe."
- Joseph Gamp
SIR KEIR STARMER: GOVERNMENT 'HAS NOT SECURED OUR BORDERS IN THE WAY WE SHOULD HAVE DONE'
Labour leader Sir Keir Starmer said the discovery of the Brazilian coronavirus variant in the UK shows the Government has not "secured our borders in the way we should have done".
Speaking at a virtual meeting with Welsh businesses to mark St David's Day, Mr Starmer said: "It demonstrates the slowness of the Government to close off even the major routes, but also the unwillingness to confront the fact that the virus doesn't travel by direct flights.
"We know from last summer that a lot of virus came in from countries where it didn't originate in, but people were coming indirect, and that's the way people travel.
"I still think we haven't secured our borders in the way we should have done, and the sooner that's done the better."
- John Hall
FORMER MINISTER SAYS BRITAIN IS 'COMPLICIT' IN YEMEN CRISIS AND 'CAN'T WASH HANDS' OF IT
Britain is "complicit" in what is happening in Yemen and cutting aid by as much as 50% would lead to millions of people starving to death, an ex-minister has warned.
Former international development secretary Andrew Mitchell said a cut of 50% in Britain's support for Yemen would be "very serious indeed" and would lead to future cuts resulting in avoidable deaths in other parts of the world.
His comments came as a coalition of leading UK aid agencies said hunger levels are rising and famine is looming in several countries, with the coronavirus pandemic pushing people in fragile states towards catastrophe.
A new report found that the pandemic has worsened the already "dire humanitarian" situation in fragile states such as Syria, Yemen and South Sudan.
It added that aid workers expect the situation to deteriorate further in the coming months, with the economic impact of the virus leaving people unable to afford food and other essentials, with thousands likely to die from hunger this year in several countries.
- John Hall
GOVERNMENT STATEMENT ON BREXIT COSTS FOR HAULIERS
A UK Government spokesperson said: "We know that some businesses are facing challenges with specific aspects of our new trading relationship, and that's why – in addition to the £20 million SME Brexit Support Fund – we are operating export helplines, running webinars with experts and offering businesses support via our network of 300 international trade advisers.
"Businesses unsure about what they need to do can contact HMRC's helpline for imports and exports.
"The number is 0300 322 9434 or businesses can speak to an adviser online."
- Joseph Gamp
BREAKING: FEARS BRAZILIAN VARIANT COULD DELAY LOCKDOWN LIFT
THE Brazilian variant of Coronavirus could force Britain to delay the lifting of lockdown and even “go backwards” by reimposing some restrictions, a top scientist warned today.
Professor Graham Medley, who sits on the Sage group that advises the Government, said the PM will have to balance the risk posed by mutant strains with the need to reopen the economy.
Read more here.
- Joseph Gamp
BUDGET 2021: KEY POINTS EXPLAINED AHEAD OF WEDNESDAY'S ANNOUNCEMENT
- We've put together a guide to what changes to Universal Credit may be announced in the upcoming Budget.
- Pensions could be a top target for a tax raid in the Budget, here are five potential changes that could hit your retirement pot.
- Here's everything expected to be announced by Mr Sunak in his Budget speech.
BUDGET 2021: GOVERNMENT TO HELP FIRST TIME BUYERS WITH 5% DEPOSITS
First- time buyers and current homeowners will be able to get mortgages on properties up to £600,000 with five per cent deposits.
On Wednesday the government will outline to lenders how it will guarantee the other 95 per cent.
PM Boris Johnson said: “I want generation rent to become generation buy.
“Young people shouldn’t feel excluded from the chance of owning their own home.”
Here's what we know about the scheme so far.
BUDGET 2021: EX CHANCELLOR KEN CLARKE URGES RISHI TO CONSIDER INCOME TAX RISE
Lord Kenneth Clarke urged Rishi Sunak to consider an income tax rise even though it would break a Tory manifesto vow.
He told the BBC: “Sensible people know in their bones all this emergency government spending is going to have to be paid for and is going to be a burden on them.
“Authors of the manifesto had no idea this massive economic blow was about to hit.”
- John Hall
MYSTERY BRAZILIAN VARIANT CASE 'HIGHLIGHTS FAILURES IN QUARANTINE POLICY'
Dr Deepti Gurdasani, epidemiologist at Queen Mary University of London, said the person who fell through the system "highlights failures in quarantine policy".
She told BBC Breakfast: "Sage has also advised that, unless we had a comprehensive, managed quarantine policy at our borders, something like this would happen.
"But unfortunately it's something that we've been quite complacent about; now we're just seeing the consequences of that.
"Unfortunately our contact tracing strategy has also failed in this regard, because particular errors were made.
"Were this variant to spread into the community, the real worry is that, as (the) vaccine is rolled out, if this variant is more resistant to vaccines than other variants it could potentially increase in frequency alongside vaccine rollout, if we don't contain the pandemic.
"So it's very important at this point in time to focus our efforts on not just finding cases but reducing transmission because this really increases the risk of virus adaptation and these sort of variants increasing in frequency."
- Joseph Gamp
BUDGET 2021: BEER DUTY EXPECTED TO BE FROZEN TO HELP PUBS POST-LOCKDOWN
Beer duty is expected to be frozen to give pubs a flying start when lockdown is lifted.
Tory colleagues have urged the Chancellor to slash 2p off the price of a pint.
But sources say he will resist that but consider higher rates on supermarket booze.
Conservative MP Jane Stevenson said: “Landlords have gone above and beyond. A cut in beer duty would be warmly welcomed.”
- Joseph Gamp
EXPLAINED: WHEN IS THE BUDGET 2021
The Budget is just days away, and Chancellor Rishi Sunak will make announcements about taxes and spending.
We take you through everything you need to know about the upcoming statement, which will affect the cash in your wallet.
Read our handy guide ahead of Wednesday's Budget here.
- Joseph Gamp
CHANCELLOR TO UNVEIL £5BILLION RESCUE FUND FOR THE HIGH STREET
Mr Sunak will unveil a £5billion pandemic rescue fund for the high street in the Budget.
He is due to deliver his Budget statement on Wednesday (March 3), including extensions to existing support schemes like furlough.
Treasury sources told The Sun that the Government has already spent hundreds of billions of pounds on business Covid bailouts.
It is not expected that any consumer voucher scheme would be announced while most shops and businesses are banned from opening under lockdown rules.
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