UK Finance Minister Rishi Sunak has promised to do whatever it takes to protect the UK economy as he said in presenting the financial budget for the second time.
He said a lot had changed but one thing remained the same that I would do anything to protect the UK economy. The economy will recover and this budget is timely with 3 main parts to protect the jobs and lives of the British people.
Sunak announced tens of billions more for the budget this time to help the economy recover from Covid-19. This budget announcement will include:
1. Extension of the furlough scheme until the end of September and new grants for self-employed workers estimated to be worth around £ 10 billion.
2. New loan program to support business during ‘lockdown’. All types of business sizes can claim ‘recovery loans’ of £ 25,000 to £ 10 million by the end of 2021, with 80% government guarantee.
3. Extension for 6 months in general credit interest.
4. Provision of £ 12 billion in capital and £ 10 billion in government grants to support the formation of bank infrastructure where it will be used to invest in long-term projects.
5. Extension of holiday discounts up to 60% until the end of the year.
6. Provision of £ 5 billion for ‘high street’ business to help reopen shops and restaurants.
7. An allocation of £ 1.65 billion to fund vaccine distribution programs and £ 55 million for vaccine testing and development.
8. Allocation of £ 700 million to help cultural and sports institutions return to normal.
9. £ 126 million is allocated for training programs as part of the Employment Plan initiative.
10. £ 520 million to fund business training for small business owners.
It can be concluded that Sunak's announcement on Tuesday is largely focused on short-term economic support and at the same time a tax increase will be needed in the future to improve UK public spending.
