The Intelligence from The Economist Owing to the pandemic: Britain’s budget
Mar 3, 2021
Duncan Weldon, Britain economics editor for The Economist, discusses the financial challenges facing the UK as the pandemic reshapes the budget. He explores the Chancellor's balancing act between job protection and managing debt. Guy Scriven, the climate risk correspondent, dives into cost-effective climate policies amid the urgency for net-zero emissions, and the innovative solutions like Berlin's cargo bikes. The conversation also touches on Zanzibar's unique land ownership issues, where every fruit tree has an owner, reflecting the complexities of property rights.
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UK Economy and Vaccine Rollout
- The British economy is currently 10% smaller than it was a year ago.
- The vaccine rollout has improved the economic outlook.
Sunak's Budget Plans
- Chancellor Rishi Sunak's budget will likely extend support schemes like furlough and grants for small firms.
- He also plans tax rises to address public finances.
Fiscal Hole and Debt Burden
- The size of the fiscal hole depends on the Chancellor's goals and economic forecasts.
- Low interest rates currently mitigate the burden of high government debt.