UK finance minister Rishi Sunak ‘to delay tax rises until later this year’
Sunak will also end stamp duty cut for homeowners, report says
UK finance minister Rishi Sunak is expected to delay plans for tax rises until late this year, The Times newspaper reported on Friday, citing a senior government source.
The source said the upcoming budget on March 3 was the wrong time for tax rises and the plans were likely to be delayed until autumn at the earliest, the newspaper reported.
Mr Sunak has also rejected calls to extend a temporary cut to taxes on property purchases, known as stamp duty, that is due to expire at the end of March, The Times reported.
Analysts say this temporary tax cut helped to fuel a pandemic boom in Britain’s housing market as buyers sought bigger houses with gardens during the coronavirus lockdown.
Mr Sunak launched a £4.6bn ($6.24 billion) support package for businesses on Tuesday to soften an expected recession caused in part by a surge in Covid-19 cases which has triggered a third national lockdown.
The chancellor previously announced emergency help for the economy worth £280bn, including a massive job protection scheme that will run until the end of April.
Britain’s economy looks likely to tip back into recession – shrinking in the final quarter of 2020 and the first quarter of 2021 – following a record 25 per cent fall in output in the first two months of lockdown last year.
The finance ministry was not immediately available for comment.
Updated: January 10, 2021 04:21 AM