Income Tax: Coronavirus

(asked on 5th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the potential loss of revenue to the Exchequer from income tax as a result of job losses in the 2020-21 financial year.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 13th November 2020

An estimation of income tax receipts in 2020-21 would be a forecast as the financial year has not yet concluded. The Treasury does not publish forecasts for the economy or the public finances. Forecasts of future receipts, including income tax receipts, are produced by the Office for Budget Responsibility (OBR) on a regular basis as part of their Economic and fiscal outlook series (EFO). The Chancellor will deliver an updated OBR forecast on 25 November alongside the 2020 Spending Review.

In March, the Government announced the unprecedented Coronavirus Job Retention Scheme (CJRS), designed to help firms to keep millions of people in employment. The CJRS has helped 1.2 million employers across the UK to furlough 9.6 million jobs (as at midnight 18 October 2020), protecting people's livelihoods. The Chancellor has recently extended the CJRS until the end of March 2021, beyond the national lockdown restrictions.

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