Since March 2020, over 700,000 people have lost their jobs. £28 billion has been offered by our government to support its citizens and businesses. The economy has fallen by 10% – the highest decrease in over 300 hundred years. Our economy is suffering. Our people are suffering. How successful will Rishi Sunak’s 2021 Budget actually be?
Chancellor of the Exchequer, Rishi Sunak, welcomed the House of Commons with his Budget announcement at 12:35 today where he outlined government plans to support the UK’s public and businesses, fix our finances, and build an innovative and successful future for our economy.
With more than 20 million British citizens receiving their first dose of the vaccine, Sunak reminded the House that “our response to the Coronavirus is working” and we must continue to fight for economic freedom.
What Does This Mean For Workers?
“getting people into decent, well paid jobs”
Our government is committed to “getting people into decent, well-paid jobs” to boost our economy and get the UK back on its feet.
Britain’s furlough scheme initially planned to cease in April, has been extended until the end of September, providing relief for thousands of worried workers. From July, businesses must contribute 10% towards their employees’ wages, with this increasing to 20% in August and September.
The UK’s 2020 Budget lacked the support self-employed workers needed for their own sustenance and livelihood, especially those who had only recently joined this workforce. In Sunak’s 2021 Budget, however, self-employed workers have been given the green light to receive support until September, as well as gain greater access to the self-employment scheme.
Not all have taken this as positive news, however. Former Labour Leader and current Independent MP for Islington North, Jeremy Corbyn, said, “where is the protection for people’s living standards and jobs?”
Whilst this Budget has excelled in its business plan for a brighter and more sustainable future, it lacks the recognition of struggling families and individuals and the depth needed to settle their woes.
Just to make it clear, not a penny of extra money for education, the NHS, courts or anything else has been offered by this budget. All we have heard about is bungs for business #Budget2021
— Richard Murphy (@RichardJMurphy) March 3, 2021
What Does This Mean For Businesses?
For decades, the UK has fallen behind its international competitors in business investments and infrastructure. This Budget, therefore, succeeds in ensuring the importance of businesses to the UK’s success and future development. While detailed analysis has focused on the role of industries and businesses in general, there is much to hope for within the arts sector.
£700 million will be offered to support arts and cultural centres as well as sporting institutions.
With 150,000 hospitality and tourism businesses struggling since the start of the pandemic in 2020, the 5% reduced VAT rate has been extended until the end of September, with an interim period of 12.5% VAT in the six months following.
25-year-old Snuggy founder from Teesside expressed his own joys at hearing the support offered to businesses like his. “Help to Grow schemes will be fantastic for us. I started my business with limited experience and what I did know was largely self-taught.”
Keir Starmer Expresses His Concerns
This Budget is a “quick fix, painting over the cracks.”
Labour Party leader, Keir Starmer, exposed the cracks in this year’s Budget and its inefficiencies in working towards a greener future.
Starmer rightfully questioned Mr Sunak on his approach towards a green UK. The planned construction of a coal mine in Cumbria has received backlash for its expected environmental impact on the region and serves to stand in the way of the UK being coined a ‘green power’.
The Chancellor’s Budget goes above and beyond in its analysis of businesses and workers, yet fails to expand on its aim to create a green country sustainable for hundreds of years to come.
“Fewer crises are more existential than climate change and declining biodiversity,” said Sajid Javid, Conservative MP for Bromsgrove.
The ‘green bonds’ that Mr Sunak announced in his Budget today are planned to invest money into environmental projects to get the UK on track for zero carbon emissions by 2050.
What Does This Mean For Those Living In Poverty?
“So many people, so many families, so many children, have been left in poverty,” said Ian Blackford, SNP Westminster Leader.
“The Chancellor doesn’t know what it’s like to be poor.”
This #Budget2021 has done nothing to address the vital issues of deepening poverty and inequality.
Whilst the Chancellor says he has done whatever it takes to protect people, he has not even raised the miserly rate of Statutory Sick Pay to a living wage level.#SickPayForAll
— Jeremy Corbyn (@jeremycorbyn) March 3, 2021
Whilst this Budget has outlined the maintenance of the £20 extra a week for those on universal credit for the next six months, is this really enough?
The Chancellor outlined an increase in support for victims of domestic violence from £125 million to £144 million, but no mention was made as to how these victims would receive such help and even if they all will.
Concluding Thoughts
The UK’s 2021 Budget has outlined plans to bring stability to our country and re-build our fragile economy. Whilst this Budget has certainly offered hope for the future of the UK, the road ahead is not steady. Despite plans for a successful economy, as a result of the Coronavirus pandemic, our economic output will be 3% smaller than pre-pandemic levels.
Madeleine Raine
Featured image courtesy of Vicky Yu via Unsplash. Image license is available here. This image has in no way been altered.
Madeleine Raine
Mads is a 23-year-old History graduate from Newcastle University. She is passionate about current affairs and British news, with a keen interest in investigative features. Aside from this, she is an avid reader, photographer, and yogi.