Budget 2021: UK economy to regain its pre-pandemic size by mid-2022, says Sunak

By - Team Kalkine Media

Source: Worawee Meepian, Shutterstock


  • While announcing the UK budget 2021, British FM Rishi Sunak said that the economy would regain its pre-pandemic size by mid-2020.
  • Furlough scheme and stamp duty holiday were extended by five and three months, respectively.
  • Corporation tax raised to 25 per cent while VAT rate cut to 5 per cent for select industries.


While reading out his Spring Budget 2021 address, British finance minister Rishi Sunak said on Wednesday that the UK economy is likely to reach its pre-pandemic output level by the middle of next year, six months earlier than the last prediction.

However, the national gross domestic product (GDP) would still be around 3 per cent smaller in the next five years than it would otherwise had been if the pandemic outbreak did not take place, he added.

Sharing the latest Office for Budgetary Responsibility (OBR) forecasts, Sunak said that the British economy would grow by 4 per cent this year against the earlier forecast of 5.5 per cent made in November 2020. The national output would increase by 7.3 per cent in 2022 and 1.7 per cent in 2023.

The main highlights of the Budget 2021 are:


Also Read: Budget 2021: Rishi Sunak To Stretch Furlough Support Until September


Jobs and livelihood support

Support to businesses


Healthcare aid



Revenue generation




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