UK chancellor prepares first budget

The United Kingdom's preparations for its first budget since leaving the European Union have been knocked off-course by concerns about COVID-19, or disease caused by the novel coronavirus.

The Chancellor Rishi Sunak will deliver his first budget next Wednesday, after taking over the role last month following the resignation of Sajid Javid.

In the annual statement on tax, public spending and economic forecasts, Sunak is expected to announce extra cash for the National Health Service and other public services to help them cope with the impact of a major rise in confirmed cases of the virus.

A possible global economic slowdown as a result of the outbreak could mean Sunak would have less money to spend unless he increases borrowing or taxes.

It will be the first budget since October 2018, although there has been a spring statement and a "spending round" since then, but these are less far-reaching than the Budget.

British MPs will vote on whether to accept the budget proposal, and as the Conservatives have a majority of 80 it's almost guaranteed to pass.

The Daily Mirror quoted a Treasury spokesman who said: "The potential implications of COVID-19 for the UK economy and the economic response will, of course, be the context in which next week's Budget is delivered.

"The chancellor will provide a further update on economic developments and government action to the House."

First elected to Parliament in 2015, Sunak previously served as chief secretary to the Treasury, the second in command to the finance minister, overseeing public spending.

The Financial Times reports that Sunak is expected to unveil plans for a new surcharge of up to 3 percent on overseas buyers of UK property, which would cause concern in the real estate sector.

British Prime Minister Boris Johnson last year promised to impose the surcharge on foreign buyers to raise an additional 120 million pounds ($155 million) a year that would be invested in schemes to tackle homelessness.

Senior Conservative figures confirmed to the FT that the additional stamp duty levy will be introduced in Sunak's budget, though some ministers are said to be cautious of setting the rate so high that it cools the property market.

It's estimated that a new charge of 3 percent would leave some foreign buyers at the top end of the UK property market paying as much as 18 percent in stamp duty. Charlie Wells, managing director of buying agency Prime Purchase, told the FT there was "no logic" to the surcharge. "If this government thinks that penalizing the people at the top, particularly foreigners, will revitalize the economy and get things going, then it is very wrong," he said.

The idea of a new surcharge was first proposed two years ago, but was shelved when Theresa May resigned as prime minister. Johnson has been pushing to revive it and it was included in the Conservatives election manifesto last year.