UK Finance Minister: "New Budget Will Include Measures to Mitigate COVID-19 Impact"

Rishi Sunak UK Chancellor of the Exchequer

(London EPA=Yonhap News)

[Asia Economy Reporter Ki-min Lee] Rishi Sunak, the UK Chancellor of the Exchequer, announced on the 8th (local time) that the new budget will include measures to support businesses and workers struggling due to the spread of the novel coronavirus infection (COVID-19).

Chancellor Sunak expressed this position in an interview with the daily Telegraph ahead of the first budget announcement after Brexit on the 11th of this month.

He explained that through the budget, he will realize the ruling Conservative Party's general election pledges and focus on securing the UK economy in response to the recent spread of COVID-19.

He said that the UK is well prepared and is not intimidated by the challenge of protecting the economy related to COVID-19. However, he expected that COVID-19 will cause immediate shocks on the supply side.

He said, "If many people are sick, they cannot work," adding, "In such cases, it affects the productive capacity of the economy." He further explained, "It is necessary to examine what interventions are needed to get through difficult times," and that selective measures to ease cash flow pressures for a certain period could be considered.

He diagnosed that if people stay at home, it could also affect the demand side. In this regard, Chancellor Sunak introduced that the budget will include measures to reduce the burden on businesses, such as tax installment payments.

He is also expected to announce implementation plans for general election pledges, including raising the threshold for National Insurance personal contributions and expanding tax relief on business rates for small and medium-sized enterprises.

To address flooding issues caused by last month's storm, the budget will include a plan to double flood defense funding to ?5.2 billion (approximately 8 trillion won). The Conservative Party claims that the expanded funding can reduce flood risk by 11% by 2027. Additionally, the budget will include funds to rehabilitate 6,000 homeless people.

Chancellor Sunak also hinted at intentions to cut taxes during his tenure to stimulate economic growth. He is reviewing opposition to transaction taxes such as stamp duty and suggested that changes could be pursued in future budgets.

This content was produced with the assistance of AI translation services.