Budget 2021: Rishi Sunak outlines details of furlough extension
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Due to the new Budget, the sterling increased to 1 to 1.15 according to the latest figures. In terms of the dollar, the sterling has experienced a sharp rise to 1 to 1.39 this afternoon. As a result of the new measures announced today, the FTSE 100 stock exchange has also increased by 40 points to 6,656.28 at the time of writing. This represents an increase of 0.62 percent.
In one of the main moves, Mr Sunak announced the furlough scheme will be extended until September to help businesses recover in what he hoped would be a swift upturn in 2022.
Mr Sunak said: “As businesses reopen, we’ll ask them to contribute alongside the taxpayer to the cost of paying their employees.
“Nothing will change until July, when we will ask for a small contribution of just 10% and 20% in August and September.”
Support for the self-employed will also continue until then with a fourth grant until April and a fifth grant will be introduced in May.
To support lower-income households, the Universal Credit uplift of £20 will be continued for a further six months.
It had been due to run out in April but will now be extended to give further support for families.
The Sterling steadied today ahead of the announcement as Mr Sunak announced a bumper Budget.
One analyst for ING said: “Overall, the additional fiscal support announced should underscore the constructive outlook for GBP for 2Q, with further fiscal help facilitating the economic rebound and making the pound the outperformer in the G10 FX space.
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“We expect sterling/dollar to breach the $1.50 level in 2H21 and dips below $1.40 should be faded.”
Analysts also stated the Sterling had been the best performing current across the G10 nation in this year.
This resurgence has been caused by the conclusion of Brexit and the successful vaccine rollout across the UK.
In order to bolster the economy throughout the pandemic, Mr Sunak has already spent close to £300billion on the economy.
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Due to the vast cost to the Government’s purse, Mr Sunak revealed hinted tax rises should be expected in the future.
More to follow…
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