London Daily

Focus on the big picture.
Saturday, May 31, 2025

UK government to hike corporation tax to offset expense of Covid-19 aid – report

UK government to hike corporation tax to offset expense of Covid-19 aid – report

The British finance minister, Rishi Sunak, is reportedly planning to raise the tax on business to defray the costs of expanding the nation’s Covid-19 support package.
The government is expected to increase the tax on business from 19 pence in the pound and to outline a pathway whereby it rises to 23 pence in the pound by the time of the next general election.

The measure will be officially announced on March 3, and is set to bring around £12 billion ($16.8 billion) of annual inflows into the UK budget, according to the Sunday Times.

“The corporation tax hike will be higher than expected, and the extension of the support schemes will be longer than most people expect,” an unnamed source said.

The gradual increase will reportedly begin as soon as this fall, with a rise in corporate tax by at least a penny in the pound, and further rises in subsequent years. The levy will not exceed 23 percent, however, according to those close to the minister cited by the newspaper.

The step is forecasted to bolster the country’s budget, providing the government with the necessary funds to extend the furlough scheme, VAT cuts, and business support loans until at least August.

Last month, the UK Finance Ministry announced plans to provide a new aid package worth £4.6 billion ($6.2 billion) to support firms across the country that have been hit by repeated Covid-19 lockdowns. The measure, which includes grants worth up to £9,000, aims to help retail, hospitality, and leisure companies avoid bankruptcy during the first months of 2021.

According to the latest report by the UK Office for National Statistics (ONS), the country’s economy saw the steepest crash in 300 years in 2020, shrinking 9.9 percent, due to a series of lockdowns imposed to contain the pandemic. It is expected to face a further contraction of four percent in the first quarter of the current year, according to the Bank of England.

Earlier this year, the UK became the first nation to be hit by one of the new and more contagious variants of the coronavirus. As of Sunday, it has registered more than four million cases and nearly 120,600 deaths, according to data compiled by Johns Hopkins University in the US. The UK remains in a nationwide lockdown, which was imposed at the start of 2021.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×