The Chancellor today delivered his second Budget. In the 12 months since his first Budget, 700,000 people have lost their jobs, the economy has shrunk by 10%, and borrowing has increased to record levels. He therefore needed to strike a fine balance between creating the conditions for economic recovery and collecting more tax to start balancing the country’s books.
In the couple of weeks leading up to the Budget, almost all of the significant announcements had been trailed in the press, in many cases leaving only the detail to be announced. We now know what the new rate of corporation tax will be and the timing for its introduction, the details relating to the phasing out of the stamp duty land tax holiday, and the final iterations of the furlough and self-employed income support schemes.
No mention was made of any increase in capital gains tax rates or reforms to the pensions regime, so these are areas that could be returned to in the future once the Chancellor is able to say confidently that the country is on the path to recovery.