Sunak to use budget to start repairing UK's public finances

Corporation tax and capital gains tax expected to rise as chancellor begins huge task of repaying Covid debt

Rishi Sunak will use the volatility in global financial markets to ram home a budget message next week that immediate action is needed to repair the damage to the public finances caused by the Covid-19 pandemic.

Despite the deep downturn caused by the third nationwide lockdown in England, the chancellor - who has been closely monitoring market moves - will announce the first steps towards reducing the biggest peacetime deficit in Britain's history.