#Budget2021: extension of Covid relief for economy very welcome says Royal London  

by | Mar 3, 2021

 

Commenting on the Chancellor’s budget, Melanie Baker, senior economist at Royal London Asset Management (RLAM) said:

“Premature fiscal tightening had looked more of a risk in the UK than in the US and euro area, so an extension of Covid-relief for the economy is very welcome. This package of measures lowers near-term risks to the recovery.

 “For a mid-sized open economy like the UK, having a plan to get the fiscal finances in order is no bad thing, but it is important to get the timing right.  If the economy is not normalising by the middle of the year then worries about premature fiscal tightening may resurface.”

 “The Budget was lighter on future tax increases than some perhaps feared, especially near-term, but there are significant new fiscal tightening measures in the second of half of the government projection, largely via the rise in corporation tax and the freezing of the personal tax allowance/higher rate threshold.”

 

 

Related articles

OPEC+ agrees to cut output by a further 1m barrels a day

OPEC+ agrees to cut output by a further 1m barrels a day

(Sharecast News) - OPEC+ members have reportedly agreed to cut oil production by a further one million barrels a day. In an online meeting, the cartel of oil producing nations- led by Saudi Arabic - said the production cuts would begin early next year. According to...

What does the healthcare sector hold for investors in 2024?

What does the healthcare sector hold for investors in 2024?

By Liz Klein, Investment Director at Calculus In the last couple of years, the healthcare sector has exhibited a mixed performance. The listed markets have faced challenges with relatively poor returns and few IPOs. In contrast, the private markets have experienced...

Latest Articles

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x