Chancellor delivers a Budget of hope that falls short on the scale of the economic challenge

Yael Selfin, Chief Economist at KPMG UK, comments on today’s Budget announcement:

“The Budget focused primarily on extending support to protect the economy from the current crisis. But as we are nearing the end of the pandemic, the big miss was a full plan to build back better an economy that has been turned upside down by Covid and Brexit.

“By extending the furlough scheme, the Chancellor has potentially protected half a million jobs that would have been lost over the summer. While extending the VAT cuts postponed the anticipated rise in inflation.

“This was an opportunity for the Chancellor to set solid foundations to unlock a future of faster growth through greater productivity by investing in skills and technology including bringing forward investment in high speed broadband and supporting high growth emerging industries*. The Chancellor’s announcements did not go as far as they could have, although some like the Super Deduction on business investment could unlock valuable investment in the short term.

“Post-Covid we are likely to see major changes in the way people and businesses operate. More help is needed to prepare for those changes now so that the economy can gather full momentum once restrictions are lifted, and fewer businesses are lost as they no longer have a viable market to operate in.”  

                                                                          -Ends-

 

 

Notes to Editors:

*In particular:

1. Bring forward investment in high speed broadband to enable people to work from home and support take up of on-line commerce by smaller businesses 
2. Support high growth emerging industries through
   • programmes to upskill workers, increase STEM teaching at schools, and improve apprenticeship programmes
   • additional support for electric vehicles charging & plugging stations
   • additional investment in 5G network testing
3. Facilitate faster refitting of housing to meet our climate change goals by supporting the construction industry to develop more environmental friendly building and refitting techniques (such as new heating systems and insulation), while incorporating better use of technologies like sensors.

 

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About KPMG

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020. KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.