The pound held onto its gains yesterday and is climbing steadily against the euro this morning following the Spring Budget, delivered by Chancellor Rishi Sunak. Sunak told Parliament that corporation tax would rise by 6% in 2023, which will increase the UK’s tax burden to its highest levels since the 1960s.
However, this negative news was counteracted by a few positives, which is why sterling was able to stay strong. Sunak said that the tax hike would only apply profits above £50k, meaning that it will only affect around 30% of businesses. A ‘super deduction’ on business investments was also announced, which Sunak coined the “biggest business tax cut in modern British history”.
It was also announced that Furlough is to be extended until September and support for the self-employed also has also been extended until September with 600,000 more people now eligible.
It’s a quiet day for economic data releases, with new car sales and construction PMI figures to be released this morning.
