World Sunak defends tax changes as 'a fair way to help solve the problems that we need to'
Stamp duty holiday 'to be extended until end of June'
The stamp duty holiday could be extended by three months, according to a media report. © PA The current stamp duty holiday deadline is 31 March As part of his Budget plans next week, Chancellor Rishi Sunak will be moving the deadline from 31 March to the end of June, The Times has reported.The chancellor had been urged to push back the deadline as many people have been left scrambling to complete their transactions before the end date.
Chancellor Rishi Sunak has defended his tax changes in yesterday's budget as "a fair way to help solve the problems that we need to".
Among his revenue-raising measures at the, Mr Sunak announced the income tax personal allowance - the level above which people pay income tax - will be
And the threshold for higher rate income tax will be frozen at £50,270 over the same period.
Sunak injecting £126m to boost traineeship scheme
Rishi Sunak to also launch a 'flexi-job' scheme so people can work for several firms at once.The scheme will include a new "flexi-job" apprenticeship that will enable apprentices to work with a number of different employers in one sector.
Some have described the move as a "stealth" tax, as they will drag more people into paying basic rate or higher rate income tax.
The changes will see 1.3 million more people pay income tax and create one million more higher rate taxpayers, according to the Office for Budget Responsibility (OBR).
Speaking to Sky News on the morning after the budget, the chancellor said he wanted to be "honest with the country about the challenges coronavirus has caused" for the UK economy.
He has outlined how the government's huge spend on economic support during the COVID crisis has seen borrowing rise to levels not seen since the Second World War.
But Mr Sunak stressed that freezing tax thresholds was "a progressive way to raise money" to begin to deal with the UK's debts.
'Now is not the time for tax rises', say MPs
The Treasury Committee says "now is not the time" for rises, but they may be needed in the future.Ahead of the Budget announcement on Wednesday, a Treasury Committee report says public finances are on an "unsustainable long-term trajectory".
"I think, crucially what people need to understand is no one's take home pay that they have today is affected or lowered by this policy," he told Sky News.
"What it does do is remove the incremental benefit that they might have experienced in the future as inflation fed through to their wages.
"But their current cash take home pay isn't affected. And also, crucially, those on higher incomes are affected more by this policy.
"It's a very progressive policy."
The chancellor pointed to analysis that the richest 20% of households will end up contributing about 15 times more than those on the lowest incomes.
"That's why this is a fair way to help solve the problems that we need to," the chancellor added.
"But, crucially, no one's cash take home pay is affected and it doesn't come into force just now because we want to support the recovery in the short term as we are doing."
Mr Sunak also used his budget to hike the rate of corporation tax, paid on company profits, from 19% to 25% in 2023, although smaller businesses will be protected from the rise.
UK to extend virus support, may raise tax in budget
Britain is expected to keep vast emergency financial support propping up the UK's virus-battered economy when unveiling its annual budget Wednesday, but could also raise tax to fight surging debt. Analysts argue that Britain must use the budget to both extend coronavirus financial support measures and tackle inequalities exacerbated by Covid. In a joint report, the Institute for Fiscal Studies and Citi bank noted that lower-income households had not been able to save as much cash as richer counterparts, sparking greater inequality in society during the crisis.
Overall, the tax rises in the budget mean households and businesses are facing the biggest tax burden since the 1960s, the OBR found, which has led to some consternation among Conservative MPs.
But the chancellor said he wanted large companies "to also play their part in helping us to fix the problem".
"I made those choices specifically because I wanted to protect working people from increasing in their tax rates," he added.
"So we honoured our manifesto commitment not to increase the rates of tax on National Insurance, income tax or VAT - that was important for me to do.
"And we also wanted to protect public services and protect small businesses.
"That's why I believe the two measures I set out yesterday are the right measures, they're fair and they will support our economic recovery."
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Labour's shadow chancellor Anneliese Dodds told Sky News that Mr Sunak had failed to deliver "the budget we needed to see".
"We really needed a budget to set us on the path to economic recovery, we needed to see household budgets supported by the chancellor, we needed to see the new jobs that are so necessary to get our economy going again supported by the chancellor," she said.
"And we needed to see, of course, our NHS supported to rebuild. I'm afraid, very sadly, on all those elements we didn't see the budget we needed."
Ms Dodds added the new COVID support announced by Mr Sunak, such as the extension of the furlough scheme, should have happened "months ago".
But she said Labour would not oppose the chancellor's freezing of tax thresholds.
One weird trick to fix climate change: Close the offshore wealth loophole .
How closing tax loopholes can fund climate policy.They’ve done this by imposing a carbon tax, an additional fee for each ton of carbon dioxide emitted, or through “cap and trade” schemes, which give companies limited allowances for how much CO2 they can emit and then allow them to buy and sell those allowances to offer more flexibility.