Beautiful Virgin Islands

Wednesday, Dec 10, 2025

Budget 2021: Chancellor Rishi Sunak denies raising taxes to cut them before next election to win votes - but says reducing burden is 'goal'

Budget 2021: Chancellor Rishi Sunak denies raising taxes to cut them before next election to win votes - but says reducing burden is 'goal'

In his budget, the chancellor promised plans to build "a stronger economy for the British people" after the coronavirus crisis - as he cut alcohol and air passenger duties and lowered the Universal Credit taper rate amid the looming threat of inflation.

Rishi Sunak has denied he raised taxes in the autumn Budget so that he can cut them again ahead of the next general election in order to win more votes - but insisted he will aim to bring the tax burden down before then.

The chancellor said the rises announced in his budget last month must be seen in the context of the public services being delivered following the coronavirus pandemic and told MPs that people's quality of life can be boosted by higher taxes.

It comes after Mr Sunak hiked the tax burden on Britons to its highest level since the Labour government led by Clement Attlee in the 1950s.

The chancellor delivered his budget in the Commons last week


Addressing the Commons Treasury Committee on Monday, the chancellor said "voluntarily" raising taxes would be "the last thing" he would do, and that he took the measures "to fund what we needed to".

Delivering his budget last Wednesday, Mr Sunak said it had been necessary for the government to take "corrective action" due to impact the pandemic has had on the economy.

And reiterating this point during a session of the Commons Treasury Select Committee on Monday, the chancellor said the purpose of raising taxes is to "fix the damage that coronavirus has done".

Among the tax increases, National Insurance contributions will rise by 1.25% from next April to help pay for the NHS and social care system.

"We can look at the taxes and, yes, people are paying more, they're going to pay the new health and social care levy, no-one is pretending otherwise, that takes money from people, that's why in an ideal world I would prefer not to have to put taxes up on people," Mr Sunak told MPs.

"But you do get something for that money. It's all very well to just look at the taxes without looking at what you're getting.

"So, you can talk about living standards by just looking at the tax side, I think that's probably slightly unfair because people's quality of life is also influenced by the quality of the public services that they get."

Mr Sunak defended hiking the burden on Britons to a level not seen since the 1950s


His comments come as disquiet grows among some Conservative MPs over the fact that rising prices have left many families facing a potential cost-of-living squeeze.

But Mr Sunak said "the reason the tax burden is very high is because we're spending a lot on lots of different things".

He continued: "Believe me, the last thing I would do is voluntarily raise taxes. We've had to do that to fund... what we needed to do, right?"

The chancellor also pledged to pursue his aim of bringing taxes down again.

Mr Sunak said it had been necessary for the government to take 'corrective action' due to impact the pandemic has had on the economy


"That's very much my goal, my mission, over the remainder of this parliament, and we took a step in that direction at budget," he told MPs.

After delivering his budget, Mr Sunak told MPs that the measures he put in place to protect jobs at the start of the pandemic meant the economy was now recovering strongly and unemployment is far lower than many had feared.

The Office for Budget Responsibility (OBR) now expects the UK's economic recovery from the COVID pandemic to be "quicker" than previously thought, Mr Sunak told MPs, with growth revised up from 4% to 6.5% for this year.

In 2022, the OBR expects the UK economy to grow by 6%, and 2.1%, 1.3% and 1.6% over the following three years.

And it has also revised down its estimates of long-term "scarring" to the UK economy of the COVID crisis.

Delivering his budget, the chancellor also told the Commons that the OBR expects a lesser peak of unemployment, of 5.2%, which means "over two million fewer people out of work than previously feared".

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
×