Today the Chancellor stepped up to announce his Budget and despite the crazy year we have had, the Budget had a lot of good news and not so much hack and slash austerity. Here’s some of the key pointers announced today with more details coming over the next few days.
Supporting people and Business
- Furlough extended until the end of September
- Two further grants for the self employed, including allowing those who started in the year 19/20 to apply.
- Restart grants of up to £18k for hospitality, leisure and personal care
- Business rates holiday extended for 3 months with a 9 month taper to follow
- Extending the VAT cut to 5% for a further 6 months, then following a taper for another 6 months.
- Stamp Duty Cut to remain in place for another 3 months with a taper for 3 months afterwards.
- UC uplift kept in place for longer
- Recovery Loans launched for businesses
- £700 million for arts, culture and sports to restart
- A new 95% mortgage guarantee for prospective homebuyers
- Alcohol duty stays frozen along with fuel duty
Starting to fix the gaps in public finances
- Asking the largest and most profitable businesses to pay more in 2 years time by increasing corporation tax to 25%
- Super deductions on capital investment for businesses a £25bil tax cut
- Maintaining personal tax allowances as they are until 2026.
- No increases to income tax, national insurance or VAT
Building back better
- 45 new Town Deals worth £1bn
- Opening a Treasury build in Darlington
- Launching a £150m Community Ownership Fund
- Opening 8 freeports in England
- Launching a UK Infrastructure Bank (in Leeds!) to invest in big infrastructure projects.
- Launching a ”Levelling up Fund’ and a ‘UK Community Renewal Fund’
- Running a Help to Grow scheme for boosting SME productivity
- Visa reforms to attract highly skilled migrants to the UK
- Green initiatives including a retail bond, offshore wind funding and new carbon markets
- Future Fund Breakthrough Fund for high growth companies and IPO listings
- New energy projects in Scotland
- New rail infrastructure in Wales
So all in all a lot of nice changes, not everything Labour wanted to see (no keyworker pay rise, no permanent UC uplift, chasing the tax dodgers) but it is challenging to shout at many of these changes which will largely be welcomed by the public. Setting out a path to recovery whilst agreeing there may be some pain in a few years!
Seems like the Coke addiction did you good Chancellor….
Read all the Budget documents as they are published below