Rishi sunak

Will the government press on with a 1 per cent pay rise for nurses? Despite the Chancellor announcing tax rises in his Budget, it's a recommendation over NHS pay that is proving the most contentious for ministers. The Department of Health has recommended a 1 per cent rise to the independent panel that advises the government on NHS salaries. This is below what had been expected — with nurses' unions campaigning for a pay rise as high as 12.5 per cent. Government aides are keen to stress no decision has been made as the independent body is not due to make its recommendation until May.  Speaking today before the health select committee, NHS chief Simon Stevens has confirmed that the NHS had budgeted for a higher pay rise of 2.1 per cent.

Rishi Sunak’s tax hikes pack a punch: by 2025, over £19bn is estimated to be raised from the freeze to the personal tax threshold, and a staggering £50bn from a new, tiered corporation tax structure. That’s a lot of people out of pocket, and businesses diverting their profits away from workers and consumers and towards the state. Criticisms of the cash grab are splashed across the front pages of the papers today. Across the pond, the Wall Street Journal has lambasted Sunak’s policies: 'Britain’s political class, and especially the governing Conservative party, prides itself on fiscal rectitude. So Mr. Sunak already faces pressure to “pay for” all this relief. We sympathise, but in this instance he would have been better off waiting.

Rishi Sunak’s planned corporation tax hike is a reminder of the importance he sets by trying to put the public finances on a sounder footing. He think that his room for manoeuvre in this crisis has been, in part, because the public finances were in reasonable shape before it.  The vaccination programme remains this government’s most important economic policy As I say in the magazine this week, his concern about debt has long been about the cost of servicing it (which remains low) rather than its precise level. But the debt pile is now so large that small movements in interest rates have big consequences. But straightening out the public finances will need growth.

Rishi Sunak's Budget has been greeted fairly favourably. The Chancellor has succeeded in avoiding sparking uproar on the Tory backbenches. And Labour's response was muted. But not everyone is happy. Step forward Caroline Lucas. The Green party MP, beamed in to the Commons from Brighton (where else?), found a fatal flaw in Sunak's announcement: 'I say in all seriousness, our nation's health and prosperity would be better served by a Chancellor who cared rather more about hedges and hedgehogs and less about hedge funds' Mr S is glad to finally hear MPs sticking up for the issues that matter...

When Rishi Sunak takes to the Despatch Box on Wednesday it will be against a backdrop of colossal national debt, the recent rise in government bond yields and the ongoing Coronavirus crisis. The British state owes £2.1 trillion, ten times the size of the entire economy of an independent Scotland. Yet some concerns over the health of the public finances are misguided – or at least exaggerated. The increase in borrowing to pay for Covid does not itself have to be repaid (at least in the short term). Why? Because provided the government can continue to make the interest payments, debt can simply be rolled over. What's more, the UK economy is already at – or close to – its maximum taxable capacity.

Rishi Sunak kept his Budget cards close to his chest this morning as he toured the studios for both BBC One’s The Andrew Marr show and Sky News’ Ridge on Sunday. The Chancellor batted away questions about spending and possible tax hikes, repeating over and over again that it’s only ‘appropriate’ to wait until the fiscal event this Wednesday to reveal the details of his plans. There were hints towards areas that have taken the Chancellor’s interest, including a passing comment about ‘business investment’ on Sky News – a bugbear of many on the right, who have long-argued that the UK’s corporate tax rate regime is ungenerous to businesses that would invest money into making their company more efficient.