THE ECONOMIC DAMAGE OF COVID-19
Chancellor declares “economic emergency”
Had everything gone to plan this year, the Chancellor would
have been delivering his Autumn Budget speech. Instead, Rishi
Sunak declared an “economic emergency” alongside a slimmed
down spending plan to see him through until spring.
Nobody in government would privately claim there is any way to
avoid tax rises at some point, but the Chancellor stopped short
of announcing any of that in his speech to a handful of MPs in a
socially-distanced House of Commons.
Any tax changes to fill the £280 billion hole in public finances
left by COVID-19 in 2020 won’t come until Spring Budget 2021 at
the earliest, and perhaps not until after that.
Sunak’s Spending Review painted a serious picture of the country’s finances and challenges on the horizon – although the Brexit transition on 1 January 2021 went conspicuously unmentioned!