Ahead of the spring budget the Chancellor of ex-chequer is expected to ease constraints on spending and borrowing, as he sets out plans to help the economy withstand the impact of coronavirus epidemic.
Rishi Sunak’s key policies will include a £5bn investment to facilitate faster broadband across the UK by 2025 and a £1bn deal to boost 4G coverage, especially benefiting Scotland, Northern Ireland and Wales. The budget is also likely to witness an increase in the National Insurance threshold, as promised in the Conservative manifesto and may even see a doubling of spending on flood defence schemes to £5bn, in light of the devastating floods in recent months. The Chancellor may even consider abolishing entrepreneurs’ relief, and saving an estimated £2.6bn. And amidst the recent Coronavirus outbreak, he has promised to give the NHS “whatever it needs” to cope with the epidemic. Therefore, hinting an increased funding for the NHS.
The rules, announced by the previous chancellor Sajid Javid at the election, commit the government to balancing the books on day-to-day spending by the middle of the parliament, and pledge that borrowing for infrastructure will not exceed 3% of GDP.
The jury is still out on whether Mr. Sunak will be able to deliver on a radical budget.
