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UK: Equities to benefit amid a successful immunisation programme – HSBC


Mar 5, 2021 09:52 GMTFXStreet News
UK Chancellor Sunak has announced an increase in corporation tax to 25% in 2023 from 19% currently, but has also extended important income support measures. Overall, following the policies announced in the Budget economists at HSBC maintain that the UK is well placed to generate a strong economic recovery from Q2 2021 and believe an overweight view on UK equities remains justified, although are cognisant of potentially subdued returns.
Key quotes
“UK Chancellor Rishi Sunak announced that levels of taxation would rise in the coming years in order to close a gap in the public finances created by the Covid-19 pandemic. In particular, the rate of corporation tax will rise to 25% in 2023 from 19% currently, and income tax thresholds will be frozen from 2022 until 2026. Importantly, however, income support measures remain in place. The UK Job Retention Scheme has been extended until September, protecting household finances as pandemic-rel ....

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