Former Chancellor Philip Hammond has warned the government to resist 'extravagant' spending proposals in next week's budget and instead focus on cutting the national debt. The Chancellor is set to shelve plans for tax rises, including a threatened 5p increase in fuel duty that would have hit millions of drivers. Commenting on the budget, Lord Hammond said the economy had taken a 'huge hit' from Covid-19, but should 'bounce back'. Financial Secretary to the Treasury Jesse Norman told MPs last month that any post-Covid recovery could be strong enough to avoid tax rises. Mr Sunak is expected to unveil billions more in investment to help kickstart a recovery from the worst recession since the Second World War.

Source: The Nation February 25, 2021 07:52 UTC