Rishi Sunak is no George Osborne: this was not an austerity budget. The chancellor promised to keep spending by extending the furlough scheme to the end of September and expanding support for the newly self-employed, alongside a package of support for businesses including grants, cheap loans, and tax relief. Perhaps most significantly, Sunak announced a new super-deduction for business investment over the next two years, worth some £25bn.
The chancellor has been prepared to continue the colossal expansion in government spending, and to challenge his own party by setting out future tax rises on big business with a rise in corporation tax from 19% to 25% in two years’ time. The contrast with the
timid demands set out in Keir Starmer’s speech last month – a recovery bond, retaining the £20 uplift in universal credit (which the chancellor promised to do, albeit temporarily), and no increases in council tax – was striking.