LONDON (UK) – Britain will prioritise trying to salvage jobs over tax rises, said finance minister Rishi Sunak, on Tuesday. Even as the COVID-19 pandemic affects the economy, he said that record borrowing and a $2.6 trillion debt pile cannot be sustained for ever.
As companies from airlines to pubs have been cutting down jobs and the government spending is soaring, Sunak is seeking to boost state revenue.
Sunak told Sky News when asked about possible tax rises, “The priority right now is on jobs. My overwhelming focus at the moment is trying to protect and support as many jobs as possible.”
Sunak repeatedly stressed that though jobs were the short-term focus for now, it is imperative that Britain’s debt mountain would have to be tackled in the medium term.
He said, “Obviously this can’t carry on forever. This level of borrowing, which will be record levels, pretty much, this year, is not sustainable in the long run.”
“Once we get through this I think people should rightly expect us to make sure we have a strong set of public finances.”
Sunak’s emergency spending measures, including subsidies to slow a jump in unemployment, will cost about 200 billion pounds this year and have already pushed public debt over 2 trillion pounds ($2.60 trillion), or 100% of gross domestic product.
Sunak on Monday laid stress on the damage that higher interest rates could bring out, taking into account the huge size of Britain’s debt.
He also said on Tuesday the government would continue its so-called “triple lock” for bringing increases in state pensions and indicated that it could jump next year.
When asked by LBC radio whether the triple lock was safe, Sunak said: “Yes, our manifesto commitments are there and that is very much the legislative position. We care very much about pensioners and making sure they have security and that’s indeed our policy.”
