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Chancellor set to extend rates relief and furlough

Chancellor set to extend rates relief and furlough

The Telegraph’s Ben Riley-Smith reports that the Chancellor is set to keep the furlough scheme going until the summer and extend the business rates holiday for the retail, hospitality and leisure sectors beyond the end of March. The paper says the moves are set to be outlined in Rishi Sunak’s March 3 Budget, adding that the Chancellor is also considering freezing personal income tax allowances in a move that could bring in up to £6bn by 2024/25. Other changes under consideration as Mr Sunak looks to balance the books after heavy coronavirus-related spending reportedly include increases in corporation tax and capital gains tax.

However, Mr Riley-Smith says Mr Sunak is expected to leave the more significant tax rises he is considering until his autumn Budget, when the economy may be stronger. Nigel Morris in the i also expects Mr Sunak to abandon plans to announce tax rises in the Budge t, with the Chancellor instead to focus on protecting jobs and providing extra support for businesses struggling to survive after the third lockdown. He notes that Mel Stride, chairman of the Treasury Committee, believes Mr Sunak should “definitely not” increase taxes at the moment, but must use the budget to outline his roadmap to paying back borrowing. The FT, meanwhile, reports that the Chancellor is expected to delay his final report on a review of business rates until the autumn, by which point it is hoped that some of the economic uncertainty caused by the pandemic will have receded.

Read more: Financial Times


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