LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

After borrowing surge, Sunak to announce more spending

British finance minister Rishi Sunak, who has already pledged over 200 billion pounds to fight the COVID-19 crisis, will free up more cash on Wednesday against the backdrop of the heaviest public borrowing since World War Two.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Wed, Nov 25, 2020
08:30 am
Reuters

British finance minister Rishi Sunak, who has already pledged over 200 billion pounds to fight the COVID-19 crisis, will free up more cash on Wednesday against the backdrop of the heaviest public borrowing since World War Two.

Sunak will announce extra investment to ease a backlog in the health system, counter a surge in unemployment and build new infrastructure in a one-year Spending Review that he is due to deliver to parliament at around 1230 GMT.

With Britain`s full exit from the European Union approaching on Dec. 31 - and no new trade agreement yet secured - Sunak is likely to announce more spending on customs operations and possibly replacement subsidies for farmers.

But borrowing forecasts accompanying his blueprint are likely to dwarf the spending plans.

Britain is on course for a record economic crash this year - the Bank of England forecasts an 11% slump - and its recovery has been weaker than those of other big economies.

Its budget deficit is expected to surge to about 20% of economic output, almost double its level after the global financial crisis which took nearly a decade of unpopular spending cuts to work down.

Sunak says now is not the time to rein in spending or raise taxes to address the deficit.

Britain`s economy is set to go back into contraction in the last three months of the year, albeit by less than in the spring, after a second wave of COVID-19 prompted new shutdowns of businesses across the United Kingdom.

But Sunak is expected to signal his first moves to offset at least some of his spending by announcing a freeze on public sector pay and a reduction in Britain`s foreign aid budget.

In a newspaper interview at the weekend, the 40 year-old former Goldman Sachs analyst said he would start to "look forward" in the spring towards fixing the deficit, if vaccines and infection tracking turn the tide of the pandemic.

But Paul Johnson, director of the Institute for Fiscal Studies think tank, said the wide range of demands on Sunak in the coming years meant spending was only likely to rise.

"Given what`s happened to the size of the economy, that can only mean one thing for taxes. They, too, could be set on an inevitable, if delayed, upward trajectory by decisions made this week," he said in an article published in the Sunday Times.

 

The story has been taken from a news agency

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

Sensex surges 750 points - Here is what led to this rally | Check top gainers

Stocks to buy with Anil Singhvi: Buy NBCC for bumper returns - Special Pick

HDFC Sec says tech glitch resolved, probe on to find root cause; market operations now normal

WOW! Oscillation Trial: 180km per hour—WATCH new AC-3 tier coach clocks lightning speed

Alia ''thrilled'' to produce Darlings along with Shah Rukh Khan

Modi government creates RECORD! New feat achieved in highways construction - Nitin Gadkari confirms this

Kareena Kapoor posts first photo of herself after welcoming second baby, says ''missed you all''

Around 64% polling in local body elections in Gujarat

Maharashtra board exams 2021 time table released: Check class 10, class 12 board exams dates; Students, don't miss

7th Pay Commission: These central government jobs offering salary up to Rs 1,77,500 | Check details

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved