Regulatory Alerts2021-05-19
A circular dated May 19, 2021 regarding amending the two tourism initiatives to finance the replacement and renovation of hotels and transportation fleets and the payment of salaries, wages, and maintenance.
The UK's fiscal rules are set to be relaxed, with plans for an extension of the furlough scheme and additional spending measures. It is expected that the UK will borrow up to £394bn ($526.7bn) in 2021-2022, which would be a significant increase from last year's borrowing of £282bn. This move highlights that the government aims to support the economy during these challenging times due to the COVID-19 pandemic. The UK government has also unveiled its budget plans for 2022 to 2023, which include a temporary VAT cut extension and an increase in corporation tax. These measures are aimed at supporting businesses and individuals through the ongoing economic challenges brought about by the coronavirus pandemic. Additionally, the government is expected to announce further details on its infrastructure spending plans, as well as updates on other key areas such as housing and education. The budget plans for 2022-2023 are in line with the UK's fiscal rules which state that debt interest payments should not exceed 6% of tax revenues and the structural deficit must not surpass 2% of GDP. These rules have been relaxed due to exceptional circumstances caused by the COVID-19 pandemic, allowing the government more flexibility in its spending decisions. In summary, the UK's fiscal rules will be relaxed for the upcoming budget year, with an extension of the furlough scheme and additional spending measures planned. The government is expected to borrow up to £394bn in 2021-2022, which would be a significant increase from last year's borrowing of £282bn. This move highlights that the government aims to support the economy during these challenging times due to the COVID-19 pandemic. The budget plans for 2022-2023 are in line with the UK's fiscal rules which state that debt interest payments should not exceed 6% of tax revenues and the structural deficit must not surpass 2% of GDP. These rules have been relaxed due to exceptional circumstances caused by the COVID-19 pandemic, allowing the government more flexibility in its spending decisions. The measures being implemented are aimed at supporting businesses and individuals through the ongoing economic challenges brought about by the coronavirus pandemic.