Rishi Sunak says public finances will take time to recover from COVID-induced challenges

British Finance Secretary Rishi Sunak on Sunday said the public finances in the country are not going to recover overnight because of the hit the economy has taken during the coronavirus pandemic. Sunak, while speaking to Sky News days before he is scheduled to announce a budget plan, said the economy is going to take some time to recover because of the COVID-induced financial suffering. Sunak did not deny his government's plan to increase income tax in this year's budget.

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Sunak said that the government needs to protect the economy in the short-term through the road map. He added that the public finances will take time to recover and it is something that will not happen overnight. 

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Sunak's remark did not go down well with the members of the opposition Labour Party. Anneliese Dodds, Chancellor of the Shadow Cabinet, claimed the Finance Secretary and Conservatives will increase taxes this year before cutting them down ahead of the next general elections so they don't get into the bad books of the people. Dodds accused Tories of ignoring a long-term solution. 

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According to reports, the UK government is planning a £5 billion grant scheme to help retailers, restaurants, and pubs hit by the COVID-19 lockdown. Media reports suggest that non-essential businesses, including hospitality and leisure sectors, could receive additional funds on top of the £600 million granted in January.  

UK's four-step reopening plan

Earlier this week, British Prime Minister Boris Johnson set out a four-step roadmap to ease restrictions across the United Kingdom and allow the country to slowly return back to normal. Prime Minister Johnson allowed schools and colleges across England to reopen from March 8 onwards. The government will allow the reopening of non-essential retail, including indoor leisure facilities such as gyms in the second phase from April 12 onwards. 

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(Image Credit: AP)