Speculation is growing that the government will opt for another one-year spending round following the announcement that November’s Budget will be delayed until next year.
The government is asking for the planned business rates holiday to be made exempt from European Union rules restricting state aid, as financial pressures mount up due to the coronavirus pandemic.
The government risks retaliation from the US after confirming it will go ahead with its planned tax on internet giants such as Facebook and Google from April.
Rishi Sunak hinted at a coming change to the government’s fiscal rule, promising to report back to parliament in the autumn after consulting with experts on how extra spending could boost the economy.
