Budget the 'sort you would expect to see in wartime', says economist

The video discusses the UK's fiscal challenges, focusing on the high GDP deficit due to the pandemic. It highlights the need for balancing immediate fiscal support with long-term deficit management. The Chancellor faces the task of providing support while planning for future tax adjustments, particularly in corporation tax. The video also covers the extension of fiscal measures like the furlough scheme and stamp duty to support the economy during lockdown.

What is the current budget deficit as a percentage of GDP, and why is it considered unusual?

• 10%, because it's typical during peacetime

• 19%, because it's usually seen in wartime

• 25%, because it's unprecedented in history

• 5%, because it's a normal economic cycle

What is one of the main challenges faced by the Chancellor in managing the budget?

• Increasing military spending

• Reducing healthcare costs

• Balancing fiscal support with deficit management

• Expanding international trade

Which tax is mentioned as having room for increase without significant political risk?

• Income tax

• Value-added tax

• Corporation tax

• Inheritance tax

What is one of the most expensive line items in the public finances during the pandemic?

• Healthcare spending

• Furlough scheme

• Education funding

• Infrastructure projects

Why might the government consider extending the stamp duty holiday?

• To reduce public transportation costs

• To increase retail sales

• To support the housing market

• To boost the tourism industry