By Jason Douglas and Isabel ColesLONDON--U.K. Treasury chief Rishi Sunak set new tax and spending plans as forecasts showed the economy is set to grow rapidly in 2021 despite rising inflation and concerns over Covid-19. Mr. Sunak said the U.K. economy is forecast by the Office for Budget Responsibility, the U.K.'s fiscal watchdog, to grow 6.5% in 2021 and 6% next year. Mr. Sunak's budget included an array of new spending pledges in areas including health and education, financed by higher tax revenues from faster growth. He set higher tax rates for companies in March. Mr. Sunak's budget comes as the Bank of England weighs an interest-rate rise at a critical policy meeting next week.

Source: Wall Street Journal October 27, 2021 15:17 UTC