CHANCELLOR Rishi Sunak should commit to investing in post-lockdown job creation and retention in his Budget while inflation is low, the TUC said today.

The Budget, due on March 3, will set out Britain’s course post-Covid.

The Consumer Price Index measured inflation at 0.6 per cent in December and 0.7 per cent in January.

Some experts have warned that inflation will exceed the Bank of England’s 2 per cent target by the end of 2021, the BBC reported.

TUC general secretary Frances O’Grady said: “With inflation remaining low, the Chancellor must drive our recovery forward with investment and stimulus at the budget.

“He must start with extending full furlough to the end of the year to keep jobs safe. Major investment in support of job creation is needed too, especially green industries.

“And we need a pay boost for key workers. They’ve earned it, and their spending will help our businesses and high streets recover faster.”

Earlier this month the TUC called for the coronavirus job-retention scheme to be extended until the end of 2021, sick pay to be raised to £320 a week and eligibility extended to two million low-paid people who do not qualify, and for the £20-a-week “uplift” to universal credit introduced last year not to be axed.

More than £280 billion has been spent on the coronavirus response, according to the National Audit Office.

As a result, Mr Sunak could be looking at tax hikes, freezing the £12,500 annual tax-free allowance, and deep cuts to spending, according to reports.