Britain's Chancellor of the Exchequer Rishi Sunak speaks during BBC TV's The Andrew Marr Show in London. Jeff Overs/BBC
Britain's Chancellor of the Exchequer Rishi Sunak speaks during BBC TV's The Andrew Marr Show in London. Jeff Overs/BBC
Britain's Chancellor of the Exchequer Rishi Sunak speaks during BBC TV's The Andrew Marr Show in London. Jeff Overs/BBC
Britain's Chancellor of the Exchequer Rishi Sunak speaks during BBC TV's The Andrew Marr Show in London. Jeff Overs/BBC

Rishi Sunak promises ‘no return to austerity’


Nicky Harley
  • English
  • Arabic

British finance minister Rishi Sunak has promised there will not be a return to austerity due to its Covid-19 response.

But he also warned the UK will not have a normal Christmas due to the pandemic.

Mr Sunak said he will announce "quite a significant" increase in funding for public services in a one-year spending plan on Wednesday.

"You will not see austerity next week," he told Sky News on Sunday. "What you will see is an increase in the government's spending on day-to-day public services, and quite a significant one, coming on the increase that we had last year."

Mr Sunak will announce the heaviest public borrowing since the Second World War after Britain suffered the biggest economic crash in over 300 years.

Economists believe Britain is on course to borrow about £400 billion pounds ($531.28 billion) this year, approaching 20 per cent of its gross domestic product, or nearly double its borrowing after the global financial crisis.

Mr Sunak said the forecasts to be published alongside his spending blueprint would show the "enormous strain" that coronavirus has put on the economy and the priority for his plan would be to fight the pandemic.

On Saturday, Britain's finance ministry announced that Mr Sunak was expected to announce a one-year package worth more than £3 billion pounds ($3.98 billion) to support the state-run National Health Service as it struggles with coronavirus.

He said the government will think about restoring public finances once the Covid-19 crisis is over, and until then will focus on fighting the pandemic.

"Once we get through this crisis we need to think more about returning to a more normal path, but as of now we are able to do what we need to do and we are able to do that at an affordable cost and use those funds to support the economy and support businesses through this crisis," he told Times Radio.

Due to the second wave of the pandemic, Mr Sunak said Britons will not be able to enjoy a normal Christmas, but said the government is looking at ways to enable families to get together.

"Frustrating as it is for all of us, Christmas is not going to be normal this year," he told Sky's Sophie Ridge on Sunday.

"But that said, the Prime Minister is, for example, looking at ways to see how families can spend time with each other."

Despite the UK's Brexit negotiations being overshadowed by the pandemic, Mr Sunak said Britain hoped to strike a trade deal with the European Union.

Asked what the effect of not having a free-trade deal in place after the transition period ends on December 31, Mr Sunak said: "It's very difficult to be precise about the near-term effects.

"But I'd agree with what the Prime Minister has said, in the short-term specifically and most immediately, it would be preferable to have a deal because it would ease things in the short term.

"But the most important impact on our economy next year is not going to be from that, it's because of coronavirus."

A deal that comes into force when the Brexit transition period ends on December 31 would be “preferable,” he added.

Did you know?

Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.

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Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).