Chancellor Rishi Sunak Cancels 2020 Annual Budget

Rejecting the rumours of an impending tax grab, Chancellor Rishi Sunak has cancelled the 2020 Autumn Budget and expressed, he will announce new financial measures to respond to the worsening COVID19 crisis. The annual budget is the time when new tax measures are announced by the government.

Mr Sunak was to deliver his second budget of 2020 within the next few weeks. There were hopes of setting out plans for major investment in infrastructure to fast-track UK’s recovery from lockdown and push Boris Johnson’s “levelling up” agenda.

However, his plans have been derailed certainly due to the rapid rise in coronavirus cases. The upsurge in COVID19 numbers has forced Prime Minister to impose new restrictions on economic and social activities, which might last for up to six months.

The Chancellor said: “As our response to coronavirus adapts, tomorrow afternoon, I will update the House of Commons on our plans to continue protecting jobs through the winter.”

Mr Sunak is said to be intending to consider a new scheme as part of a wider emergency support programme, while the pressure continues to mount on the government to help businesses sustain the second wave of COVID19.

Rumours were making rounds in the summer of 2020 that sweeping tax rise will be announced soon. After six months of continuous government support to the businesses and their employees, the question that continued to grab the attention is “how will it all be paid for?”

However, the sudden increase in coronavirus case, what seems to be a second wave, and the additional new measures that were introduced in mid-September have forced him to reconsideration his decision. All new tax assessments and calculations will have to wait till the time, the virus is in decline again, and probably we will see more measures introduced to help businesses survive the second wave first.

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