Beautiful Virgin Islands

Saturday, Aug 01, 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
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Zuckerberg Opposes US Ban on Chinese AI Models and Warns of Regulatory Capture
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Trump says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
Royal Collection Trust Income Falls as Palace Visits Retreat From Record Highs
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Ministers Examine Social-Care Levy as Burnham Seeks Funding Settlement
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Badenoch Offers Tory Votes to Keep Serious Offenders in Prison
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
Another AI Genius Left the United States — and Silicon Valley Is Starting to Worry
Shein Reports $99mn Loss as Trade Barriers Test Low-Cost Model
CXMT Gains 466% in China’s Biggest IPO Since 2010
Amazon Seeks Approval for 5,105-Satellite Mobile Network
Burnham Puts School-to-Work Reform at Centre of Welfare Strategy
Burnham Rules Out Replacing Council Tax and Stamp Duty
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
Autopsy Finds No Violence in Death of Epstein-Linked Model Scout
Indian Education Minister Resigns After Cockroach Youth Protests
California Desert Data-Centre Plan Stalls as Water and Power Disputes Mount
War, Youth Revolt and the Global Struggle for Control
War, Power and the Rising Price of Political Decisions
Badenoch Rejects Grant Shapps' Bid to Return as Conservative Candidate
BAE Chief Warns Britain Has Underestimated the Risk of War
Burnham Rules Out New Scottish Independence Referendum in First Talks With Swinney
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Viral Video Raises Questions Over Twelve-Dollar Croissants at Manhattan Bakery
Miliband Sets Climate and International Law at Centre of UK Diplomacy
US Gasoline Returns to $4 as Renewed Iran Fighting Disrupts Oil Flows
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Orders 50% Tariffs on Selected Canadian Imports
×