Buzz People

Will I have to pay more tax?

Coronavirus has brought large parts of the economy to a standstill, and the government has had to spend billions to support workers, businesses and the NHS.
So where is all the money going to come from?

How much will coronavirus cost the UK?

It's still very early in the crisis, so it's impossible to tell how big the final bill will be. It could be as much as £298bn just for this financial year (April 2020 to April 2021), according to the Office for Budget Responsibility (OBR), which keeps tabs on government spending.
That's an absolutely enormous sum.
To put it into context: before the crisis, the government was expecting to borrow around £55bn.
Schemes to support public services, businesses and individuals, such as the Job Retention Scheme (furloughing) will cost £123bn, the OBR estimates.
The government will also raise less tax than it hoped. Unemployed or furloughed workers pay less income tax, businesses pay less tax if their profits are lower, and shoppers pay less VAT if they buy less.
The final bill could be even higher. Leaked Treasury documents suggested the figure this year could be as much as £337bn.
Even if the pandemic ends quickly, the government will have to borrow more money in future years too.
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