UK Budget
With the Budget on the way on 3 March, we take a look at what the Chancellor of the Exchequer, Rishi Sunak, might have in store.
Budget predictions 2021: What could we expect
It’s hard to believe, but this time last year Rishi Sunak was not a household name. He replaced Sajid Javid as Chancellor in a last-minute reshuffle just weeks before the 2020 Budget. One Budget (as well as a number of mini budgets) later he’s one of the most recognisable faces in British politics.
However, despite his repeated references to the need to start “returning to sustainable public finances”, it’s still not clear quite what his approach will be when he opens his briefcase this year. What we do know is that the need for economic support in response to the pandemic is still there and that tax rises to start contributing to the Government’s funding shortfall have their own potential risks for the economy.
In looking at what the Budget might contain, the “elephant in the room” is the likely response to the increasing level of government debt as a percentage of GDP. The Chancellor faces the decision of whether to raise taxes to reduce the debt level or to provide greater stimulus to increase GDP. In practice, the Chancellor is likely to be looking to do both – boost the economy but at the same time raise taxes in areas of the economy that he thinks can bear it.
This webpage will be regularly updated with the latest developments and reactions and insights for individuals, employers and businesses in the lead up, and following the UK Budget.
In the run-up to Budget, there are always rumours and predictions circulating, all with a varying likelihood of being included in the Chancellor’s speech. We have set out some of the more popular rumours and our assessment of what we might see and we will keep this under review as we get nearer to the Budget.
Featured press releases
The Budget trilemma: businesses urge the Chancellor to provide additional COVID support, attract overseas investment and set out how to address the deficit – reveals EY survey
The Budget trilemma: businesses urge the Chancellor to provide additional COVID support, attract overseas investment and set out how to address the deficit – reveals EY survey
22 Feb 2021 London GB
Stimulate economic growth, address the deficit or both? What decisions might the Chancellor take in four weeks’ time?
Stimulate economic growth, address the deficit or both? What decisions might the Chancellor take in four weeks’ time?
3 Feb 2021 London GB
UK economy could avoid a double-dip recession after a resilient performance in November, reveals latest EY ITEM Club forecast
UK economy could avoid a double-dip recession after a resilient performance in November, reveals latest EY ITEM Club forecast
28 Jan 2021 London GB
The show must go on: Lack of an Autumn Budget doesn’t stop HM Treasury making a number of important tax policy announcements and new consultations
Chris Sanger, EY’s Head of Tax Policy, comments on today’s HM Treasury tax policy announcements
13 Nov 2020 London GB
EY launches free Brexit App to help businesses of all sizes access relevant and insightful content – from multiple sources – all in one place
EY launches free Brexit App to help businesses of all sizes access relevant and insightful content – from multiple sources – all in one place
9 Dec 2020 London GB
Podcasts
How the UK economy can stay resilient into the post-pandemic future
EY ITEM Club has improved its estimate of the UK’s economic performance in 2020 – and forecasts a rebound in growth over the next two years