Budget 2021: Rishi Sunak will pledge to use 'fiscal firepower' to protect jobs through remainder of Covid lockdown

Chancellor Rishi Sunak will promise to do "whatever it takes" to protect jobs through the remainder of the coronavirus lockdown, when he unveils his Budget on Wednesday, the government has said.

He will tell MPs he plans to use "fiscal firepower" to help boost the economy by protecting jobs, but he will also be "honest" about how he plans to balance the books following unprecedented levels of spending during the pandemic.

“We’re using the full measure of our fiscal firepower to protect the jobs and livelihoods of the British people,” he will say when setting out his economic plan.

Mr Sunak will set out in the Commons his three-point plan focused on supporting people, fixing the public finances and building the future economy.

On the plan, he will say: "First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis.

“Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that.

“And, third, in today’s Budget we begin the work of building our future economy.”

On Tuesday, Mr Sunak held a virtual call with around 50 people who have been helped by the Government's support schemes during the pandemic - such as the furlough scheme.

The Treasury said the Budget will build on the government's plan for jobs and the £280 billion package of support during the coronavirus crisis.

Talk of the need to fix public finances could indicate tax rises are on the horizon, though Business Secretary Kwasi Kwarteng indicated to ITV News corporation tax would not be increasing yet.

"I'm not sure that's something that will necessarily happen tomorrow - clearly businesses have been supported a great deal and so there's an argument that says maybe in the future they can be expected to support/contribute to the tax revenue," he said.

"That's a debate I think for another day."

The Cabinet minister also said the furlough scheme would be extended beyond the end of April, when it was previously due to expire.

He did not say how long the scheme would be extended for, but suggested support should be provided until the end of lockdown.

"Tomorrow [Budget day] will be about further support, extending support, for jobs, families and also for businesses," Mr Kwarteng said.

Asked how long he would like to see support extended, the senior minister said: "I think very conveniently we have a roadmap, we have some degree of clarity.

"If, as is expected and likely, the roadmap dates are met, we will be able to open up essentially Britain for business, almost back to normal, on June 21."

Watch live coverage of the Chancellor's Budget in an ITV News special programme - Wednesday 3 March from 12.15 on ITV and itv.com/news

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