Budget 2021 – What's the Political Backdrop?
That the Chancellor, Rishi Sunak, faces an unenviable task as he prepares to deliver his second Budget this week is perhaps the understatement of the century. As the BBC has noted , as a result of the response to the COVID-19 pandemic, the country’s debt, as a percentage of GDP stands at 99.4%, the highest it has been since 1963. Government borrowing this year has also reached £270.6bn so far, with the Office for Budget Responsibility suggesting it could total £393.5bn by the end of the financial year in March, the highest level for any year since the Second World War. Against this backdrop, it is little wonder that the Chancellor is softening the country up for bad news, having pledged to “level with people” about the state of the economy and the measures that will be needed to get the public finances onto a more healthy trajectory. But among the blizzard of economic and financial statistics we can expect over the coming week, what is the political background to th...