Posted: 03.03.21 at 12:54 by The Editor
Chancellor Rishi Sunak has today revealed his budget in the House of Commons.
The budget aims to provide support during what will hopefully be the final stage of the COVID-19 pandemic.
The Chancellor spoke of how Coronavirus has ‘fundamentally changed our lives’ and promised to do ‘whatever it takes’ to help the economy.
The economy should return to pre-COVID levels by mid-2022 according to the Office of Budget Responsibility.
Here are the key points of the budget for you and your business:
The economy is expected to grow 4% this year.
The furlough scheme will be extended until the end of September.
There will be no change to terms for employees but businesses will be asked to contribute when they reopen but not until July.
This contribution will be 10% in July and then 20% in August and September
Self-employed people will be provided with two extra grants until September.
The grants will be targeted over the summer with those making up their losses receiving less from the government.
Over 600,000 more people can now claim these grants according to the Chancellor.
The Universal Credit increase will stay in place for the next six months.
The national living wage will be increased to £8.91.
The chancellor is doubling incentive payments for businesses who hire apprentices to £3,000.
Restart grants will be given in April to reopening business.
£6,000 will be given to non-essential retail per premises while hospitality will receive an £18,000 grant due to them opening a month later.
Arts, culture and sports will be given £700 million as a 2030 World Cup Bid from the UK and Ireland will be backed by the government.
A new recovery loan scheme will also be offered to business - the figures range between £25,000 and £10 million.
The 100 percent business rates holiday will continue until June then reduced to 66 percent until next year.
The five percent reduced VAT rate for hospitality will be extended to September.
The stamp duty holiday will continue to June and then properties up to £250,000 until September.
Governments will guarantee 95% mortgages to lenders.
Fixing Public Finances
The rate of income tax, national insurance and VAT will not be raised.
However tax thresholds will no longer increase with inflation.
Corporation tax will be increased in 2023 to 25%.