UK | Budget should support a stronger economic recovery
The Chancellor’s ‘spend now, pay later’ Budget delayed the pain of dealing with Covid’s fiscal cost. In the near-term, extending support schemes and incentivising firms to bring forward investment should boost the recovery.
What you will learn:
While delayed tax rises threaten to weaken growth later, those hikes could prove to be as bad as austerity gets. Indeed, if, as we think, the OBR’s economic forecast proves pessimistic, future austerity could be reined back.
Applying Augustine’s famous prayer “Lord, make me chaste – but not yet!” to the actions of UK chancellors has become something of a cliché in recent years.
In the short term, fiscal largesse continued, with most of the key props of economic support put in place by Mr Sunak last year extended.