UK Government Unveils Pre-Budget Recovery Plan to Bolster Economy Amid COVID-19 Recovery

Strategic Insights -

The UK government is working on a pre-Budget "recovery plan" to outline medium-term proposals for boosting investment and skills as the country emerges from the coronavirus crisis. The plan, slated for publication in the week starting February 22, aims to provide a roadmap for rebuilding the economy. Meanwhile, Chancellor Rishi Sunak will use his March 3 Budget to provide more details of his medium-term strategy and the final phase of emergency government support for the economy, which has so far cost £280 billion.

Key Takeaways:

  • The UK government's pre-Budget recovery plan will outline medium-term proposals for boosting investment and skills, with a focus on rebuilding the economy after the COVID-19 crisis.
  • The plan is expected to be published in the week starting February 22, ahead of the prime minister's "road map" out of the Covid-19 lockdown in England.
  • Chancellor Rishi Sunak will use his March 3 Budget to provide more details of his medium-term strategy, including the extension of state support programmes for companies and households.
  • The government support programmes for companies and households are due to expire at the end of March or April, with the potential for Mr. Sunak to extend them until the economy is able to reopen.
  • The £20-a-week uplift to universal credit, due to end on March 31, may be extended by Prime Minister Boris Johnson to help those affected by the pandemic.
  • Business leaders, including Tony Danker, director-general of the CBI, are calling for the extension of the furlough scheme to the end of June, as well as continued value added tax and business rates relief.

Statistics:

  • The UK government's emergency support for the economy has so far cost £280 billion.
  • The furlough scheme is set to expire at the end of April, with business leaders calling for its extension until the end of June.
  • The £20-a-week uplift to universal credit is due to end on March 31.
  • The government support programmes for companies and households are due to expire at the end of March.

Sources:

  • The Times
  • The Times
  • The Times
  • The Telegraph
  • CBI (Confederation of British Industry)