AFP, London :
Britain unveils its first post-Brexit budget on Wednesday and analysts expect Prime Minister Boris Johnson to press ahead with major spending on infrastructure, despite the economic fallout from the coronavirus.
Finance minister Rishi Sunak, who will present the budget after his predecessor Sajid Javid resigned unexpectedly last month, is also scheduled to outline emergency funding measures in the battle against COVID-19.
Before the novel coronavirus hit the headlines, Chancellor of the Exchequer Sunak had said the budget “will deliver” on recent government promises of “unleashing the country’s potential”.
However, the government has now delayed publication of its National Infrastructure Strategy – a more long-term outlook on improving British transport connections while achieving net-zero emissions nationwide by 2050.
In the immediate term, 39-year-old Sunak’s task is to carry out Johnson’s goal of boosting improved productivity in cities outside London via massive infrastructure projects, such as the new high-speed railway HS2.
Javid resigned, and was replaced by his deputy Sunak, after Johnson offered to keep on the former chancellor only if he sacked all of his political advisers. The prime minister wants greater say over Treasury policy following the Conservatives’ victory in the general election in December that finally unlocked Brexit and allowed Britain to quit the European Union on January 31.
“Sunak won’t sit on his hands in the budget, in the face of the meltdown in financial markets and growing concerns that the coronavirus is developing into a pandemic,” said Ruth Gregory, economist at Capital Economics research group.
“The chancellor’s first priority will be to unveil a package of targeted measures to help offset any damage inflicted by the virus.”
The second “will be to deliver the government’s 2019 manifesto promises and set the wheels in motion on raising investment spending,” Gregory said.
The government has said full construction work on the long-delayed HS2 would begin next month after Johnson backed the project despite soaring costs and damage to wildlife.
Analysts also expect the new budget to provide greater detail on the government’s fiscal plans.
Britain unveils its first post-Brexit budget on Wednesday and analysts expect Prime Minister Boris Johnson to press ahead with major spending on infrastructure, despite the economic fallout from the coronavirus.
Finance minister Rishi Sunak, who will present the budget after his predecessor Sajid Javid resigned unexpectedly last month, is also scheduled to outline emergency funding measures in the battle against COVID-19.
Before the novel coronavirus hit the headlines, Chancellor of the Exchequer Sunak had said the budget “will deliver” on recent government promises of “unleashing the country’s potential”.
However, the government has now delayed publication of its National Infrastructure Strategy – a more long-term outlook on improving British transport connections while achieving net-zero emissions nationwide by 2050.
In the immediate term, 39-year-old Sunak’s task is to carry out Johnson’s goal of boosting improved productivity in cities outside London via massive infrastructure projects, such as the new high-speed railway HS2.
Javid resigned, and was replaced by his deputy Sunak, after Johnson offered to keep on the former chancellor only if he sacked all of his political advisers. The prime minister wants greater say over Treasury policy following the Conservatives’ victory in the general election in December that finally unlocked Brexit and allowed Britain to quit the European Union on January 31.
“Sunak won’t sit on his hands in the budget, in the face of the meltdown in financial markets and growing concerns that the coronavirus is developing into a pandemic,” said Ruth Gregory, economist at Capital Economics research group.
“The chancellor’s first priority will be to unveil a package of targeted measures to help offset any damage inflicted by the virus.”
The second “will be to deliver the government’s 2019 manifesto promises and set the wheels in motion on raising investment spending,” Gregory said.
The government has said full construction work on the long-delayed HS2 would begin next month after Johnson backed the project despite soaring costs and damage to wildlife.
Analysts also expect the new budget to provide greater detail on the government’s fiscal plans.
