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Watch UK Finance Minister Rishi Sunak announcing the country's 2021 budget - CNBC

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British Finance Minister Rishi Sunak is announcing the government's public spending plans for the year.

Prime Minister Boris Johnson's government embarked upon unprecedented fiscal stimulus last year as the economy was hammered by the coronavirus pandemic, suffering its sharpest contraction in more than 300 years.

The U.K.'s 2021 budget comes as nationwide Covid-19 restrictions are set to be gradually unwound over the coming months. Analysts are expecting possible tax hikes and a nod to future tightening to make an appearance in the latest budget announcement Wednesday.

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