UK Budget: Next steps, not complete vision

Chancellor Sunak extends emergency support of £65bn to economy. He also introduced a surprise £25bn boost to investment incentives. Chancellor pre-announces increase in corporation tax from 2023 and removes threshold indexation, combined these should raise £70bn over forecast horizon. OBR economic growth forecasts proved too pessimistic for 2020. It forecasts 4.0% for 2020 (from 5.5%) and 7.3% for 2021 (from 6.5%), broadly in line with our view.