UK Treasury Chief Sets New Tax, Spending Plans
By Jason Douglas and Isabel Coles
LONDON--U.K. Treasury chief Rishi Sunak set new tax and spending
plans as forecasts showed the economy is set to grow rapidly in
2021 despite rising inflation and concerns over Covid-19.
Mr. Sunak said the U.K. economy is forecast by the Office for
Budget Responsibility, the U.K.'s fiscal watchdog, to grow 6.5% in
2021 and 6% next year.
The budget deficit is forecast to narrow from 7.9% of annual
gross domestic product in the fiscal year through March to 3.3% the
following fiscal year. By the 12 months through March 2025, the
deficit is forecast to have shrunk to just 1.7% of GDP.
Mr. Sunak's budget included an array of new spending pledges in
areas including health and education, financed by higher tax
revenues from faster growth. He set higher tax rates for companies
Mr. Sunak's budget comes as the Bank of England weighs an
interest-rate rise at a critical policy meeting next week. A move
in the coming months would put the BOE out in front of the U.S.
Federal Reserve and other major central banks in tightening policy
to tame surging inflation.
Write to Jason Douglas at Jason.Douglas@wsj.com and Isabel Coles
(END) Dow Jones Newswires
October 27, 2021 08:30 ET (12:30 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.