The 2021 Budget at a Glance

This article by the Guardian summarises Rishi Sunak's 2021 budget that includes an extension to the furlough scheme until September as well as £5bn in restart grants to help businesses recover from the pandemic.

The Chancellor laid out plans to spend £352bn to support the UK economy's recovery in 2021 and 2022, with the UK's budget deficit likely to reach 17% of GDP this year (its highest peacetime level).

It was announced that corporation tax will rise to 25% in 2023, a significant increase from the current rate of 19%, which will impact the profitability of firms as well as the likelihood of foreign firms setting up operations in the UK.

There were also disguised tax rises announced in the form of the freezing of income tax allowances (as well as inheritance tax and pensions allowances) which will mean that as wages rise with inflation, a larger proportion of people's pay packets will go to Treasury as taxes.

Knowledge of the announcements in this budget provides a great source of context and examples that you can bring into your exam answers - so give this article a read!

Robert Peston summed the budget up in just one tweet...