Sunak Pledges 'New Economy' In Budget

Rishi Sunak promised to address the rising cost of living as he reaped the benefits of a stronger-than-expected recovery from the economic hit of Covid-19.

The Chancellor pledged a major increase in public spending, tax cuts for businesses, and investment to create a new economy based on high skills and wages following the pandemic.

After widespread condemnation of the decision to cut £20 a week from Universal Credit, Mr Sunak set out plans to reform the benefit to enable claimants to earn more without losing as much of it - a measure he claimed amounts to a £2billion tax cut for the lowest paid.

But Labour hit out at the package of measures announced by the Chancellor, which will cut the price of a bottle of Champagne and slash taxes for banks.

Mr Sunak acknowledged that the tax burden will reach its highest level as a share of gross domestic product (GDP) - a measure of the size of the economy - since the early 1950s but insisted I don't like it and stressed there have to be limits to the scope of the state.