IFS urges Chancellor to outline economic recovery plans in upcoming Budget

The Institute for Fiscal Studies (IFS) has urged Chancellor Rishi Sunak to use the upcoming Budget to set out plans for an economic recovery from the coronavirus (COVID-19) pandemic.

17 Feb 2021

The Institute for Fiscal Studies (IFS) has urged Chancellor Rishi Sunak to use the upcoming Budget to set out plans for an economic recovery from the coronavirus (COVID-19) pandemic.

The IFS expects the Budget to outline additional spending to support businesses and individuals affected by the pandemic. The business group stated that it should also focus on supporting the recovery as restrictions are eased.

In its Budget submission, the IFS said that the Chancellor needs to announce 'well-targeted extensions in emergency support to households and employers' over the coming months. He also needs to set out plans for how the UK economy will adjust to the 'new normal', the IFS said.

'This will be just Rishi Sunak's second Budget, but his 15th major fiscal announcement,' said Paul Johnson, Director of the IFS.

'In it he needs to strike a balance between continuing support for jobs and businesses harmed by lockdowns, and weaning the economy off blanket support which will impede necessary economic adjustment. Any significant continuation of the furlough scheme must be limited and carefully targeted.'

The 2021 Budget will be delivered on Wednesday 3 March.

Aside image

Accountancy services tailored to you.

Find out more »

Aside image

Are you tired of bookkeeping?

Find out more »

Aside image

Is your business just starting up?

Find out more »

Aside image

Are you paying the right amount of VAT?

Find out more »

Aside image

Struggling with your self assessment tax return?

Find out more »

Aside image

Looking for more than just compliance services?

Find out more »

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign up now