Markus Andrews

The phased-out extension until the end of September will guarantee workers 80 per cent of their salaries, with employers set to contribute 10 per cent toward the total in July and 20 per cent in August and September.Mr Sunak has pledged to “continue doing whatever it takes to support the British people and businesses through this moment of crisis”.But why is the scheme going to run beyond the end of the government’s lockdown-easing roadmap for England, which envisages the lifting of all social restrictions by 21 June?The “relatively generous” September extension is an admission that businesses hit particularly badly by Covid-19 may require extra time to recover once restrictions are fully lifted, according to Paul Johnson of the Institute for Fiscal Studies.He told BBC Radio 4’s Today programme: “I think the thinking behind that is that there will be some businesses that are still struggling with demand, struggling to get back on their feet so giving them two or three months of grace will help to ensure that jobs are maintained.Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekday“Remember the chancellor tried to do this last summer – he was intending to phase out furlough over the summer and early autumn and of course that couldn’t happen because of the return of the virus.“The key thing now is that this really does end in September because we really do move back to normal.”Rain Newton-Smith, chief economist at the Confederation of British Industry, agreed that the extension would “give businesses the chance to catch their breath as we carefully exit lockdown”.She added: “It’s common-sense to keep the scheme going while business resilience remains so fragile for some months yet.”
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Mr Sunak told MPs he was cancelling planned increases in both levies in recognition of the fact that consumers were going through a “tough time” as a result of coronavirus restrictions.The decision means that duty on petrol and diesel has remained at 57.95p a litre since 2011, with planned increases cancelled for 11 consecutive years.Mr Sunak said:  “Planned increases in duties for spirits like scotch whisky, wine, cider and beer will all be cancelled. “All alcohol duties frozen for the second year in a row. The third time in two decades. “And right now, to keep the cost of living low, I’m not prepared to increase the cost of a tank of fuel. So the planned increase in fuel duty is also cancelled.”Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekday More

The government’s spending on coronavirus support has reached £407 billion over the course of the pandemic, following measures announced by Rishi Sunak in his Budget.Announcing his Budget to the House of Commons, Mr Sunak said that borrowing ot deal with the Covid-19 crisis was “comparable only with the amount we borrowed during the two world wars”.Mr Sunak said that measures announced in today’s Budget, including the extension of furlough payments, VAT breaks, business rates relief and the Universal Credit uplift, will add £65bn to the cost of the government’s support package.He told MPs: “At this Budget, we are announcing an additional £65 billion of measures over this year and next to support the economy in response to coronavirus.“Taking into account the significant support announced at the spending review, this means our total Covid support package this year and next is £352 billion. “Once you include the measures announced in the spring Budget last year … total fiscal support from this government over this year and the next amounts to £407 billion.“Coronavirus has been one of the largest, most comprehensive economic shocks this country has ever faced. And, by any objective analysis, this government has delivered one of the largest, most comprehensive and sustained responses this country has ever seen.”Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekday More

Rishi Sunak has announced the government’s VAT cut for the hospitality and tourism sectors will be extended for six months until the end of September.Unveiling the measure, the chancellor said 150,000 businesses employing 2.4 million people “need our support” to protect jobs as the coronavirus restrictions are eased in the months ahead.The government first announced the cut to 5 per cent last summer, applying to the hospitality industry, hotel and holiday accommodation and admission to certain attractions, as the national lockdown was lifted.Before the reduction, which was due to end on 31 March, the sectors were subject to the standard rate of VAT — set at 20 per cent.Speaking at the Budget, Mr Sunak added that when the reduction expires in September, “even then, we won’t go straight back to the 20 per cent rate”.He added: “We’ll have an interim rate of 12.5 per cent for another six months; not returning to the standard rate until next year. In total we’re cutting VAT next year by almost £5 billion.”Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayUnder the government’s roadmap, hospitality businesses, including pubs and restaurants, will be allowed to reopen their doors for outside dining in April, before a full reopening in May.Mr Sunak added that the 100 per cent business rates holidays in England will continue from April until June, telling MPs: “For the remaining nine months of the year, business rates will still be discounted by two-thirds, up to a value of £2 million for closed businesses, with a lower cap for those who have been able to stay open. A £6 billion tax cut for business.”The chancellor said business rates holidays for the retail, hospitality and leisure sectors would also continue until the end of June, and would be discounted by two-thirds for the remaining nine months of the year.More than 600,000 self-employed people excluded so far from the government’s support package will be able to claim direct cash grants, as the government’s self-employment income support scheme (SEISS) is extended to cover those who began working for themselves in 2019-20. More

The headline rate of corporation tax will rise from 19 per cent to 25 per cent from 2023, Rishi Sunak has announced.In a move that effectively reverses the policy of his predecessor George Osborne, the Chancellor said the rise was necessary to make public finances sustainable the long-term.It comes as the government also moves to freeze the thresholds for income tax, inheritance tax, pensions allowance, capital gains tax, and VAT registration – another way of raising revenue.The change to the tax on company profits still leaves the UK with the lowest rate of Corporation Tax in the G7, below countries like US, Germany, and Canada. Mr Sunak said he wanted to reduce borrowing by raising more tax revenue rather than focus on cutting public spending because the Conservatives were the “party of public services”.”The only other alternative would be to increase the rates of tax on working people, but I don’t think that would be right either,” he said.Corporation tax receipts in 2018-19 were £55.1 billion, and £63.2 billion in 2019-20. It has been at 19 per cent since 2017; in 2010 when the Conservative-led coalition government took office the rate was 28 per cent, slightly above where it is now.Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayMr Sunak said he would also create a Small Profits Rate of 19 per cent to ensure only businesses with profits of over £250,000 would be hit by the 25 per cent rate. The chancellor also said he would introduce a new “super deduction”, tweaking tax allowances to encourage capital investment for the new two years. But Paul Johnson, the director of the Institute for Fiscal Studies, said: “That’s a huge increase in rate of corporation tax. Right at top end of expectations. Extraordinary reversal of longstanding policy. Risky.”On tax allowances, he said: “Raising income tax by freezing allowances is progressive, but it’s the least progressive way of raising income tax.”
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Rishi Sunak has been mocked online after a video resurfaced of him telling school pupils he is a “total coke addict” before clarifying he meant Coca-Cola and not cocaine.In the footage, the chancellor can be seen telling two schoolboys: “I’m a Coke addict. A total Coke addict.”After a brief pause he clarifies: “Coca-Cola addict. Just for the record. Just to be totally clear. I am a Coca-Cola addict. I have seven fillings to show for it.”He then goes to some length to explain his fondness for the fizzy beverage: “So now, I could get in trouble. I genuinely do have seven fillings because I got through a lot of the stuff when I was young, which is very bad, so people should not… don’t do that.“But I now have one a week. I’m only allowed one a week now. So I’m an enormous Coca-Cola fan. No Diet Coke. No Coke Zero. Never any Pepsi.“Actually my favourite drink is not even Coke it’s called Mexican Coke. It’s special Coke. It’s the only place in the world where Coke is made with cane sugar rather than high fructose corn syrup, for the people who are really interested in this kind of thing.”However, the chancellor’s remarks may not stand up to scrutiny, with The Mirror reporting that it is apparently a myth that Mexican Coke is the only variety with cane sugar.Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayThe paper said Coca-Cola lists the drink as being flavoured with sugar in several countries including the United Kingdom.The clip was shared by the Twitter account Accidental Patridge, which highlights moments which bring to mind the awkward Norwich-based DJ. More

Scotland’s first minister Nicola Sturgeon has said she “deeply regrets” her government’s unlawful investigation of Alex Salmond, apologising to the two women who were “failed” by the botched probe.However, the SNP leader defended herself against accusations by her predecessor that she misled parliament during her opening statement to a Holyrood committee on Wednesday morning.“I’ve never claimed in this or anything else to be infallible. I have searched my soul on all of this many, many times over. It may very well be that I didn’t get everything right, that’s for others to judge,” she said.Denying her former mentor’s allegations of a “concerted” plot to bring him down, Ms Sturgeon said: “I feel I must rebut the absurd suggestion that anyone acted with malice or as part of a plot against Alex Salmond. That claim is not based in any fact.”Criticising Mr Salmond’s actions, Ms Sturgeon said he had told her about his own inappropriate behaviour with women. “He gave me his account of one of the incidents complained of … What he described constituted in my view deeply inappropriate behaviour on his part,” she said.Ms Sturgeon added: “That he was acquitted of criminal conduct by a jury is beyond question. But I know, just from what he told me, that his behaviour was not always appropriate. And yet across six hours of [his] testimony [on 26 February] there was not a single word of regret.”Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayDefending her government’s probe into Mr Salmond, she said: “As first minister I refused to follow the age-old pattern of allowing a powerful man to use his status and connections to get what he wants.” She told she stood by a series of decisions that were made in relation to a judicial review which her government lost, insisting decisions were “legally sound.” She added: “The government, despite the mistake it undoubtedly made, tried to do the right thing.”The first minister has been grilled by MSPs about the 2018 meetings at which she was first made aware of allegations against her predecessor.She originally told parliament she became aware of the investigation when Mr Salmond told her at her Glasgow home on 2 April 2018. But she subsequently had to admit to having “forgotten” a meeting four days earlier with Mr Salmond’s aide Geoff Aberdein, during which the investigation was discussed.Ms Sturgeon said had been left with “a sense of unease” after a media inquiry from Sky News in November 2017, which made her aware “of allegations or concerns about sexually inappropriate behaviour on the part of Alex Salmond”. More