Chancellor Rishi Sunak is expected to outline targets for cuts in VAT and stamp duty in a budget statement that will look to boost the economy. With Wednesday’s statement not a full Budget, the Chancellor’s options for rethinking taxes are limited, the Sunday Times notes, saying he will be able to change VAT rates without the need for a finance bill or a vote in parliament. Whitehall sources have told the paper that Mr Sunak is seeking cuts for a fixed period, with this likely to deliver six-month reductions in VAT on the hospitality industry.
Business rates relief and a moratorium on businesses filing VAT returns rolled out to ease pressure brought about by coronavirus pandemic are expected to be extended. While stamp duty is unlikely to be altered this week, the Chancellor will reportedly outline plans for changes that will come in his autumn Budget. The Observer looks at what Mr Sunak may announce, saying he has faced calls to cut VAT to boost consumer spending.
Read more: The Sunday Times