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Budget 2021: key points at a glance

Rishi Sunak has announced his budget – here are the main points, with political analysis

Rishi Sunak says his budget delivers a stronger economy for the British people: stronger growth, public finances and employment. The chancellor says he will give people the support they need with the cost of living and levelling up.

The chancellor says inflationary pressures are affecting the UK economy, with the Office for Budget Responsibility (OBR) forecasting that inflation will be above 4% next year.

He says the pressures are global in nature and are “impossible for us to address alone”. However, the government will act to support households, he says.

The chancellor says forecasts from the Office for Budget Responsibility show the economy will grow by 6.5% this year.

Sunak says it will take until the start of 2022 for the economy to return to its pre-pandemic size.

GDP will grow by 6% next year, 2.1% in 2023, 1.3% in 2024, 1.6% in 2025, and 1.7% in 2026.

In March, the OBR had forecast growth of 4% this year, after a plunge of 9.9% in 2020 – the worst recession for 300 years.

The OBR’s estimate for long-term scarring for the economy has been revised down from 3% to 2%.

Unemployment is forecast to peak at 5.2% in the fourth quarter of 2021.

In July 2020, the OBR had forecast unemployment would peak close to 12% by the end of that year due to the end of furlough. However, the scheme was extended until the end of September 2021.

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Read the original article at The Guardian

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