Beautiful Virgin Islands

Sunday, Jul 12, 2026

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
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Following Massive Investor Demand: SK Hynix Raises 26.5 Billion Dollars on Nasdaq
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
After Four Years, and Under a Heavy Veil of Secrecy: King Charles Meets His Grandchildren, Harry and Meghan's Children
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
Deep Purple Has Released Its Best Album in Decades
Microsoft Lays Off 4,800 Employees and Xbox Suffers the Hardest Blow
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Luxury bags take over the World Cup: style, status symbol, or just showing off?
×