Millions of people who claim universal credit are to get a £1000 one-off payment.
Sunak to double one-off payment to claimants of universal credit to £1000: Rishi Sunak has pledged to double the original offer in a bid to help the economy. Claimants were originally due to get a £20 a week uplift. March’s budget may see businesses get clobbered with tax rises. However, Mr Sunak has promised a gradual rise of business rates. Along with a rise in corporation tax.
Andrew Griffith MP, former business adviser to the PM, said. “Today the UK has the lowest corporation tax rate in the G7. Increasing corporation tax rates towards the £1 in every £4 of business profits rate, last seen as recently as 2013, would still see the UK be one of the most internationally competitive economies. Particularly if accompanied by modernisation of R&D tax credits and the Government’s ambitious investment in skills.” The weekly £20 uplift is due to finish on 31st March.
However Tory MP’s are calling for Mr Sunak to extend it. Although he feels it could become a “permanent fixture”. Meaning it would cost £6 billion a year. He has instead offered to pay one year’s worth of uplift in a lump sum of £1000.
A Treasury source refused to comment but didn’t deny the plan was being discussed. A Government source said Mr Sunak saw it as a way of boosting the economy. He said “One of the motivations of the Treasury is they think people will go out and spend it. And help stimulate the economy.” The Chancellor’s main focus of the March budget will be to support jobs and the economy it is reported.
The current 100 per cent business rates relief holiday for retail, hospitality, leisure and childcare sectors is due to expire at the end of the 2020/21 financial year. Other measures for consideration to extend are the stamp duty freeze and a temporary reduction of VAT rates. To five per cent for hospitality businesses. Separately, Gerard Lyons, the Prime Minister’s former economic advisor during his time as Mayor of London, writes in The Telegraph that “the Government must not wait until there is zero deaths before lifting the lockdown”
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