UK budget to offer business lifeline

More help for Britain's pandemic stricken retailers is promised in the budget on Wednesday, when Chancellor of the Exchequer Rishi Sunak will set out the measures needed to steer the nation's economy through to June 21, the date when the government intends to remove all remaining novel coronavirus pandemic restrictions.

Sunak has indicated that he would "align" economic support to the government's road map to exiting lockdown restrictions, meaning support for businesses most affected by the crisis.

This could include an extension of the job retention program, which has been key to preventing spiking unemployment in the United Kingdom.

The Financial Times reported that Sunak is set to announce a 5 billion pounds ($7.1 billion)"restart" grant program aimed at shops, pubs, hotels and other businesses to help them recover.

"I said at the beginning of this crisis that I would do whatever it took to protect people, families and businesses through this crisis and I remain completely committed to that," Sunak told Sky News. "I want to make sure people realize that we are going to be there to support them and if you look at our track record, we went big, we went early and there is more to come next week."

The chancellor is expected to lay out the heavy impact caused by the pandemic to the public finances.

Sunak said he must "level with people", that the crisis has had an "enormous hold on our economy "that will cause debt to "rise indefinitely" if borrowing continues after the recovery.

BBC News analysis noted that the country's debt is now "topping 2 trillion pounds, the same value as the UK economy", which is "the highest national debt level since 1963".

Taxes are likely on business amid rising unemployment and following the nation's biggest annual economic shrinkage on record.

Government officials working on the budget told the Financial Times last week that corporation tax could rise from 19 percent to 25 percent.

Sunak told Sky News he "would like to be able to keep taxes low for people in general" but added that he wanted to "be responsible" with people's money.

Sunak is also expected to announce that a further 1.7 billion pounds will be made available for the COVID-19 vaccine rollout program.

The government estimated in December that the rollout would cost 12 billion, and this Budget boost will add to that figure.

More than 20 million people in the UK have had their first vaccine dose with nearly 800,000 also receiving a second dose.

The rapid vaccine rollout could mean a faster economic recovery and fewer taxes than feared, the Financial Times reported.

Due to the speed of the vaccine rollout exceeding expectations, the independent Office for Budget Responsibility will predict a faster recovery, said the paper.

It said: "The growth rate for 2021 will be the fastest the UK has experienced in 50 years."