What’s in the U.K. Budget as Sunak Targets Covid and Deficit

(Bloomberg) -- Chancellor of the Exchequer Rishi Sunak unveiled his second U.K. budget as he tries to balance the need to prop up the economy while the coronavirus pandemic endures with efforts to begin reigning in the deficit.

With the prospect of the economy fully reopening still months away -- Prime Minister Boris Johnson has set June 21 as the earliest that can happen -- here’s what the chancellor announced on Wednesday:

More Covid Aid

Sunak said his priority is to protect jobs through the pandemic, and promised to support people and businesses as lockdown measures are gradually lifted. He outlined 65 billion pounds ($90 billion) of new Covid support, bringing the total since the crisis began to 352 billion pounds. When capital spending announced at last year’s budget is included, the total fiscal stimulus rises to 407 billion pounds.

He announced:

Taxation

The chancellor also signaled there’s pain ahead as he tries to rein in a fiscal deficit that the Office for Budget Responsibility predicted will swell toward 355 billion pounds this tax year.

“The amount we’ve borrowed is only comparable with the amount we borrowed during the two world wars,” Sunak said. “It is going to be the work of many governments, over many decades, to pay it back.”

Sunak said it would be “irresponsible” to allow debt to rise unchecked, and announced a series of tax measures to take effect in future years.

Leveling Up

There were several announcements that fed into the ruling Conservative Party’s “leveling up” mantra aimed at spreading prosperity nationwide:

Other Announcements

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