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Chancellor Rishi Sunak hints at early July "fiscal event"
Rishi Sunak_HM Treasury

Mini-Budget scheduled for early July

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Chancellor Rishi Sunak told MPs and journalists over the weekend that he intends to stage a “fiscal event” in early July to set the UK economy on course for a post-coronavirus recovery.

2nd Jun 2020
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As reported by Sunday Times, the Chancellor is concerned about the scale of potential job losses and is pressing the Prime Minister to bring forward an economic stimulus package to “kickstart” the economy.

As RSM tax partner George Bull noted, however, the Chancellor’s hints were quickly followed by a statement that the fiscal event will not constitute a Budget.

With tax announcements pushed to the back burner, Sunak is expected to prioritise further spending announcements in a mini-Budget that could include:

  • Retraining funds to help those laid off when the job retention scheme ends
  • A national infrastructure strategy, which was delayed from the March Budget; and
  • Plans to help UK tech businesses.

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Replies (6)

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By ireallyshouldknowthisbut
02nd Jun 2020 17:28

*sigh*

That's going to be another 2-3 days wasted then, watching it, reading all the stuff and telling clients about it.

And same again in November, and no doubt March too.

All for some showboating I imagine with little substance.

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By North East Accountant
03rd Jun 2020 10:16

Why waste a crisis the government will think, so from say 6th April 2021 all businesses regardless of size must by law........

1) operate via a separate business bank account.
2) pay themselves via payroll for any monies they withdraw from the business for personal use.
3) pay employers NIC on any withdrawals
4) submit quarterly returns via MTD.

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By petestar1969
03rd Jun 2020 11:48

Well 97% of the world's "wealth" is debt so whatever.

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Replying to petestar1969:
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By NeilW
03rd Jun 2020 10:29

It's 100%. All money is debt. For you to be "in credit", somebody else has to hold the "credit".

And credits are liabilities.

Never forget it says on a tenner "I promise to pay the bearer on demand the sum of ten pounds". A tenner is a receipt for liabilities held at the Bank of England.

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By NeilW
03rd Jun 2020 10:26

"Sunak faces a difficult balancing act to deliver a meaningful stimulus package while working out a way to pay for the long-term costs of the Covid-19 crisis."

I think I'm going to scream if I see this unthinking nonsense repeated any more.

For every liability there is an asset. When the asset is spent, it will be taxed (and a percentage of a larger flow is a larger number). Amazingly changing the asset into a flow will generate, over a series of transactions, taxation which will eliminate the liability entirely. Unless somebody downstream decides to save rather than spend in which case it will become an asset again - with a balancing liability.

Spending works like a stone skipping across a pond. Every ripple is taxation.

Boils my blood every time I see this ridiculous "taxes will have to go up to pay for Covid" rubbish. No they don't need to. Percentages don't work like that!

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By PandoraSleeps
03rd Jun 2020 18:43

Great timing, thanks. At least we won’t be busy dealing with anything else.

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