Chancellor of the Exchequer Rishi Sunak leaves 10 Downing Street after attending a Cabinet meeting on 14 February, 2020. Barcroft Media As British Finance Minister Rishi Sunak prepares to set out the country’s economic path to recovery, analysts are weighing the possibility of tax hikes and a nod to future fiscal tightening. […] “Following the Chancellor’s announcement of a £5 billion ($7 billion) company grant scheme, we may also see more generous lending terms to companies announced, as well as an extension to tax exemptions in order to help firms through what will hopefully be the last phase of lockdowns and, crucially, the recovery thereafter,” Turner said in a statement Monday. […] In all, Morgan Stanley predicts that this fiscal year’s £5 billion of additional tax receipts will rise to £10 billion next year. […] Capital Economics expects Sunak to announce a loosening in fiscal policy relative to current plans amounting to about £25 billion (1.2% of GDP) in 2021/22.
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