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Sunak Delays U.K. Fiscal Squeeze Until Year Before Next Election

  • Chancellor’s budget gives room for rebound in next three years
  • Treasury is spending 350 billion pounds on the Covid-19 crisis
U.K. Chancellor of the Exchequer Rishi Sunak Presents Budget
Photographer: Hollie Adams/Bloomberg

Rishi Sunak put off steps to tackle the U.K.’s record budget deficit for another two years, focusing on stimulus for a recovery from the coronavirus pandemic.

Tax and spending measures in the chancellor of the exchequer’s annual budget will add 73 billion pounds ($101 billion) to the economy by April 2023. In the three years after that, the Treasury will take back almost the same amount of money and drive the overall tax burden to its highest since the 1960s.