IT’S EKE OUT TO HELP OUT
Chancellor holds off on tax hikes but finds money for furlough, UC and high streets
RISHI Sunak will hold back on big tax rises in this week’s Budget as he bids to eke out every penny in the Treasury’s Covid-hit coffers.
His reluctance to raise money comes despite having already spent £400billion on Covid measures and national debt hitting £2.1trillion.
Shadow Chancellor Anneliese Dodds warns of tax rises in today’s Sunday Mirror: “Now is not the time.”
Instead Mr Sunak will give 700,000 shops, pubs, clubs, hotels, restaurants, gyms and hair salons up to £18,000.
He said of his £5billion Restart Grant: “The extra cash will ensure our high street can open with optimism.”
Mr Sunak will bring back 95% mortgages from April and extend the Stamp Duty holiday for three months.
It means buyers need 5% deposits on homes up to £600,000, with the Treasury underwriting the rest.
The move marks a return of the Help to Buy scheme axed in 2017. 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.”
Mr Sunak added: “Saving a deposit can be difficult. The pandemic has meant fewer low-deposit mortgages.”
He will also announce a Northernbased infrastructure bank to unlock £40billion investment in construction, declaring: “This shows how serious we are about levelling up the country.” But
Beer, wine and spirit duty frozen
Cigarettes up 26p a pack, cigars 13p
Child benefit up by 10p for one, 5p for two
No fuel duty rise for 11th year running
Long-term wealth or property tax he may wait until “Tax Day” on March 23, when longer-term financial measures will be unveiled, to signal a consultation on a £260billion wealth tax for millionaire couples.
More than eight million would pay 1% of wealth above £500,000, based on the value of pension pots, savings and homes – less mortgage costs.
The furlough scheme paying six million workers 80% wages will also continue for at least three months.
The £20-a-week Universal Credit uplift will stay for another six months.
Child benefit will rise to £21.15 a week for one child and £14 per week for additional children. The minimum wage will edge up 19p an hour to £8.91.
A 5% VAT rate for hotels, B&Bs and amusement parks due to end this month could be extended to June along with their business rates holiday.
Booze taxes are tipped to be frozen, along with fuel duty – for an 11th year. But cigarettes and cigars will be hit.
nigel.nelson@sundaymirror.co.uk