Chancellor announces business support in Budget

Chancellor announces business support in Budget

Today, 3rd March 2021, Chancellor of Exchequer Rishi Sunak announced the government’s new plans for recovery during the Budget of 2021

– billions to support businesses and families through the pandemic
– investment-led recovery as UK emerges from lockdown
– future changes to strengthen public finances

Chancellor of the Exchequer Rishi Sunak said his immediate priority continues to be supporting those hardest hit, with extensions to furlough, self-employed support, business grants, loans and VAT cuts – bringing total fiscal support to over £407 billion.

He also set out plans to drive jobs, growth and investment to help the economy rebound – and spoke about the tough choices required to put the public finances on a more sustainable path.

This follows Prime Minister Boris Johnson’s announcement of the recovery roadmap, which follows a four step journey to lifting Coronavirus restrictions and reopening all businesses in time. Click here for information about the roadmap.

The Budget at a glance:

Business Support

 

Extension of the Coronavirus Job Support Scheme (CJRS) until end of September 2021

A fourth and fifth grant from the Self-Employment Income Support Scheme (SEISS) will be available, worth 80% of three months’ average trading profits up to £7,500

100% Business Rates holiday to continue until the end of June

£5bn Restart Grant scheme with grants of up to £18k per firm

– Continuing the Statutory Sick Pay (SSP) Rebate Scheme – details on steps for closing this scheme will be set out in due course

 

 

Recovery Loan Scheme – businesses of any size can apply until the end of the year

5% Reduced rate of VAT for hard hit sectors extended for six months. It will then be 12.5% from 1st October, and returning to the standard rate in April 2022

– Help to Grow: Management will help thousands of SMEs get world-class management training.

Help to Grow: Digital will help them develop digital skills with free expert training and a 50% discount on new productivity-enhancing software

Packages and investment pots

 

£220m UK Community Renewal Fund supports people and communities most in need by creating opportunities to trial new approaches and innovative ideas at a local level

The Community Ownership Fund is a £150m pot to help communities can support local facilities, community assets and amenities most important to them.

£4.8b Levelling Up Fund invest in infrastructure that improves everyday life, with the first round of funding starting in 21-22.

£375m Future Fund: Breakthrough investing in highly innovative companies that are aiming to raise at least £20 million of funding.

£300m recovery package for sport and £25m of new funding to support grassroots football

An extra £126m into the traineeship scheme – currently the government pays firms £2,000 per trainee, but this will rise to £3,000

£400m for the arts – an extra £300m has been put into the £1.57bn Culture Recovery Fund

– £1bn for 45 new Town Deals

Infrastructure, Net Zero & More

 

Infrastructure Bank will boost investment to accelerate progress to Net Zero

Green Savings Bond – a sovereign green savings bond for retail investors, allowing savers to help drive the country’s transition to net zero by 2050

Eight freeports have been announced, including East Midlands, Humber, Teesside

– £20m programme to support the development of floating offshore wind technology across the UK

£68m UK-wide competition to implement several first-of-a-kind energy storage prototypes or technology demonstrators.

A “fast-track” visa scheme to help start-up and rapidly growing tech firms source talent from overseas

An extra £1.65bn for the Covid vaccination rollout to help it reach its target of offering a first dose to every adult by 31 July

Taxes, income and property

 

130% Super Deduction – companies can cut their taxes by up to 25p for every pound they invest. For the next two years, when companies invest they may reduce their tax bill by 130% of the cost.

– Bringing back 95% mortgages with a mortgage guarantee and stamp duty cut until the end of June.

Income tax: An increase in the Personal Allowance to £12,570 in April 2021, maintained at that higher level until April 2026

Pension Lifetime Allowance frozen at £1.1m up to an including until 2025-26

Inheritance tax and Capital Gains Tax frozen until April 2026

 

 

 

Corporation tax will increase from 19% to 25% from April 2023. Companies with profits under £50,000 will remain at 19%

Universal Credit uplift of £20 will be continued until the end of September, and will be paid as a one-off payment of £500

The National Living Wage will rise to £8.91 from April

Trading loss carry-back rule has been temporarily extended from one to three years for losses of up to £2m

Alcohol and fuel duties continue to be frozen

But what does this mean for your business and staff?

 

The Lincolnshire Chamber of Commerce will be holding a free webinar that looks at the employment aspects of the Budget announcements and the latest COVID-19 related issues, hosted by the Chamber’s Chief Executive Simon Beardsley and presented by Oliver Tasker of Wilkin Chapman.

Join us at 2pm – 3pm on 23rd March to find out all this and more. There will also be chance for you to ask your questions to Oliver and get direct advice.

Topics

– Budget update – What was said and what does it mean?

– Vaccine issues for employers

– Recent case law on Covid related dismissals

– Workforce planning

Click here to register

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