The Spring Budget, presented by Chancellor Rishi Sunak on March 3, 2021, has been met with mixed reactions from experts. While some have praised the government’s efforts to support businesses and individuals during the ongoing pandemic, others have raised concerns about potential imbalances and long-term impacts.
One of the key measures announced in the budget was the extension of the furlough scheme until September 2021. This move has been widely welcomed by experts as it will provide much-needed support to businesses and workers who have been hit hard by the pandemic. However, some have raised concerns about the potential cost of the scheme, which is estimated to be around £5 billion per month.
Another major announcement in the budget was the introduction of a new “super-deduction” tax break for businesses investing in new equipment. This measure is aimed at boosting investment and productivity in the UK economy. However, some experts have questioned whether this tax break will be enough to encourage businesses to invest, given the uncertain economic climate.
The budget also included measures to support the housing market, including a mortgage guarantee scheme for first-time buyers and an extension of the stamp duty holiday. While these measures are expected to boost demand for housing, some experts have warned that they could also lead to a rise in house prices, making it even harder for first-time buyers to get on the property ladder.
One of the most controversial measures in the budget was the decision to freeze income tax thresholds until 2026. This move is expected to raise around £8 billion per year for the government, but it has been criticized by some experts as a stealth tax increase that will hit low and middle-income earners hardest.
Overall, the Spring Budget has been seen as a mixed bag by experts. While there are some positive measures aimed at supporting businesses and individuals during the pandemic, there are also concerns about potential imbalances and long-term impacts. As the UK economy continues to navigate the challenges posed by the pandemic, it remains to be seen how effective these measures will be in supporting recovery and growth.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- Source: Plato Data Intelligence: PlatoData