It is reported that the British Chancellor of the Exchequer Sunak will raise corporate taxes to cover the cost of extending the epidemic support plan in next month's budget.

It is reported that Sunak will announce in his speech on March 3 that he will raise the corporate tax from 19p to 23p per pound and will work out a way to raise it before the next general election. The move is expected to increase revenue by 12 billion pounds ($16.8 billion) a year, the report said.

Starting this autumn, at least a penny will be added to the corporate bill, which will cost businesses 3 billion pounds and rise further in the coming years.A person familiar with the matter clarified that he would not raise the corporate tax to more than 23%.

These measures will help pay for extended vacation plans, VAT cuts and business support loans until at least August.

In 2010, the Conservative-led government sought to rebalance the economy by cutting spending in the wake of the global financial crisis. By contrast, Sunak is expected to postpone most of the toughest decisions on how to pay for the support in his budget speech.

The newspaper quoted a source as saying:"the increase in corporate tax will be higher than expected and the extension of support for the plan will be longer than most expected."

Insiders said that, like other measures supported by COVID-19, stamp duty on home purchases would be suspended, the report said.

In 2020, Britain's economy experienced its worst recession in 300 years, shrinking by 10%. The bank of England predicts that Britain will shrink by 4% in the first three months of 2021.