CORONAVIRUS – BUDGET NEWS AS IT HAPPENS

As changes that relate to the Covid business landscape are presented later today by the Chancellor Rishi Sunak during his Pre Budget Announcement, expected at approximately 12:30 after Prime Minister’s Questions, we will bring you updates and all-important context for your business on this page.

Please see the below key announcements as they were announced:

 

Corporation tax will increase to 25% from 2023 but income tax thresholds will freeze, in the Chancellor’s plans to boost the economy after Covid.

Recovery will be ‘swifter and more sustained’ than thought, Rishi Sunak says.

Unemployment may peak at 6.5% in 2022, lower than the 11.9% predicted.

But Labour leader Sir Keir Starmer calls it a Budget that “papers over the cracks” with no plan to rebuild the “shattered” economy.

He says there is no plan to “fix” social care or the NHS, or address inequality.

Sunak confirms the furlough scheme – which pays 80% of employees’ wages – will be extended until the end of September.

Employers will be asked to contribute 10% in July and 20% in August and September.

A further 600,000 self-employed people will be eligible for help as access to grants is widened.

Universal Credit top-up of £20-per-week will continue for a further six months.

Minimum wage to increase to £8.91 an hour from April.

5% reduced rate of VAT for tourism and hospitality will be extended for six months to the end of September.

The 100% business rates holiday in England will continue from April until June.

Stamp duty cut will continue until the end of June, with the nil rate band set at £250,000.

£19m for domestic violence programmes; £40m for victims of 1960s Thalidomide scandal; £1.65bn for vaccine rollout.

There is £400m to help arts venues in England re-open; £300m for professional sport; £25m for grassroots football.

Treasury will establish a new economic campus in Darlington.

The amount borrowed is comparable only with that during the two world wars, he says; It will be the work of many governments, over many decades, to pay back.

UK to borrow a peacetime record of £355bn this year and borrowing will total £234bn in 2021-22.

 

If you have any questions as to how these changes may affect you or how they may be best managed if they do, please contact one of our expert team for more details.