‘Budget leaving too many half-supported’ claims Carmichael

The furlough scheme is set to continue until September and cuts to stamp duty will remain in place until June, chancellor Rishi Sunak confirmed today, as he unveiled the new UK Government budget.

While Mr Sunak has shared hopes for a “swift and sustainable” recovery in the nation’s economy, Northern Isles MP Alistair Carmichael has branded the chancellor’s financial statement a “stand still” budget.

Speaking after the announcement, Mr Carmichael voiced concern that many fiscal decisions appeared to be put off for the autumn, and called for longer term thinking on corporation tax, VAT rates for tourism and hospitality and business investment.

Included in the announcements, the Government has today confirmed that the furlough scheme and self-employment support will continue until September, with a partial expansion in eligibility for the self-employed scheme. The £20 uplift in Universal Credit will continue for another six months, and corporation tax is to rise on profits above £50,000 to 25 per cent in 2023.

Mr Carmichael said: “Today was a ‘stand still’ Budget. There was a lot of hot air and warm words but the Chancellor has clearly put off the hard decisions for later in the year. He is postponing judgement on his intentions but he can only postpone so long.

“If and when tax rises come to repair the damage to Government finances, they need to be targeted to those at the top — to big businesses rather than small ones — so that those who are most able will pay their fair share.

“I am glad that the Chancellor has, at least, bent to pressure to extend furlough and the Universal Credit uplift, and that the VAT cut for hospitality and tourism will continue for the time being. This is really the least that the Government can be doing to support hard hit businesses which are still waiting for their chance to really recover. What the Chancellor needs to consider – and I shall be raising this point with ministers — is the potential for a long-term cut to tourism VAT. This could be a chance to give solid footing for the sector in building back in the years to come.

He added: “News that the support scheme for self-employed people will be expanded to cover some who were previously left out is of course welcome, though we should keep in mind that this leaves millions still falling through the cracks. The Government has had the better part of a year to find ways to support people — there is little excuse left for their inaction.

“The Chancellor today has presented a lot of half measures today. You cannot ‘half support’ people in need. Either you want to support people and support recovery fully, or you do not. The Chancellor is again leaving too many people out.”