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This is Money Podcast

The 'escape velocity' Budget and the £3bn underpaid state pension victory

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1650 Ratings

🗓️ 6 March 2021

⏱️ 55 minutes

🧾️ Download transcript

Summary

The Budget this week was notable for two things: Firstly, The Chancellor decided to delay settling the coronavirus bill to another day and, secondly, the true scale of the women's underpaid state pension scandal was laid bare at £3billion.

The collossal short-changing of married women on their state pensions was uncovered by This is Money columnist Steve Webb and journalist Tanya Jefferies just over a year ago.

Their investigations, campaigning and tenacity has paid off and now women affected should get what they are owed - to the tune of an astonishing £3billion, according to Budget documents.

Tanya joins Georgie Frost, Lee Boyce and Simon Lambert to explain the issue on this week's podcast, as the team also trawl through the Budget to explain what it means for people.

One day Britain might have to try to balance the books and pay the bill for the coronavirus rescue, but that day didn't arrive with the Budget.

The Chancellor Rishi Sunak openly indulged in some stealth taxation by freezing personal allowances and income tax thresholds in the future and said corporation tax would rise, but kept the cash flowing to aid economic recovery.

Furlough was extended, there will be an encore at the stamp duty holiday party, the business investment of Eat Out to Help Out was launched, and a new 5% deposit mortgage scheme has been launched (without being called Help-to-anything, so that's something at least).

The self-employed also got some more help, with new entrepreneurs getting assistance, but bizarrely those who previously earned more than £50,000 as sole traders and paid lots of tax are still left out in the cold.

The tax burden is set to rise but this was no austerity Budget and Britain's debt and deficit are scarily big.

So will Rishi's third Budget in a year be what Britain's economy needs to achieve escape velocity as lockdown eases (and hopefully never comes back)?

Transcript

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0:00.0

Welcome to This Is Money podcast. I'm Georgie Frost and alongside me and editor Simon Lambert.

0:04.7

Today is assistant editor Lee Boyce and special guest, Pensions and Investment Editor Tanya Jeffreys.

0:10.3

And coming up, the budget. What else? What was innate? What wasn't? The winners, the losers, the present and the future.

0:16.9

We pick out some of the headlines, including a huge victory for This Is Money on behalf of

0:20.9

hundreds of thousands of elderly women. Don't forget, you can stay up to date with all the latest

0:24.4

breaking money news, just go to this ismoney.com.ukh, or download the app. But after much,

0:30.2

speculation, the Chancellor Rishi Sunak delivered his crucial speech outlining the state of the

0:34.8

economy and his plans for taxation and spending as

0:38.0

Britain recovers from the coronavirus pandemic. Now some things we knew before, grants for businesses,

0:43.5

a new mortgage guarantee scheme, some we pretty much knew extension to furlough and a stamp duty

0:48.6

holiday plus more help for the self-employed and, well, plenty that we didn't know. Simon

0:53.6

Lee and Tanya, your immediate,

0:56.4

holistic assessment of the budget and then we'll pick out some of the key measures. Simon,

1:01.0

I'll come to you first. I think it was a it was an okay budget. I don't really know what we

1:07.6

could we could expect in the sense of a good or a bad budget.

1:12.9

As widely predicted, Rishi didn't go all guns blazing with tax rises to start trying

1:19.7

to balance the books, the almost impossible task of balancing books that he faces.

1:25.0

And we'll go on to the debt and the deficit and the servicing

1:28.3

of such borrowing in a bit. There was the suggestion that there's some stealth taxes in there.

1:35.3

I mean, he was pretty upfront about it in all honesty. The freezing of the tax thresholds,

1:41.3

the personal allowance, corporation taxes going up, which is pretty low in this country

1:45.5

anyway, and it won't be that high compared to many other countries. It will be a lot higher

...

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