Furlough, funding and taxes: The key points of the Budget 2021
The chancellor of the exchequer has today delivered his yearly budget statement.
In today’s statement, chancellor Rishi Sunak has announced plans to extend the Job Retention Scheme - which enables businesses to furlough their employees - until the end of September, instead of the originally planned April.
However, businesses will be asked for a 10 per cent contribution to the scheme in July, rising to 20 per cent in August and September.
Also announced today was the news that the Treasury is being relocated to the North East, with a new economic campus in Darlington.
This comes following a year where the government has borrowed £355bn, equivalent to 17 per cent of the UK’s national income.
Key points of today’s budget include:
- Extension of the Job Retention Scheme until the end of September, with businesses contributing to the cost of the scheme from July onwards.
- Government support for the self-employed will continue until September.
- A new restart grant will be launched in April, with non-essential retail businesses eligible for up to £6k per premises, and hospitality and leisure establishments - including hairdressers - eligible for grants of up to £18k.
- In April 2023, corporation tax will rise to 25 per cent. This will not affect businesses with profits of less than £50k.
- The Treasury will open up a new base in Darlington.
- The government will invest in offshore wind projects in Teesside and Humberside.
- The UK’s first infrastructure bank is set to open in Leeds.
- Eight freeports - areas with lower taxes for businesses - have been announced across the UK.
- More than £8bn funding has been allocated for 45 new Towns Deals.
- An extra £1.5bn is being put towards the rollout of the coronavirus vaccine.
- Super deduction: For the next two years, when companies invest, they can reduce their tax bill by 130 per cent of the cost.
- National Living Wage will rise to £8.91 from April this year.
- New Visa reforms are being introduced which are expected to attract highly skilled workers to the country.
- Personal tax thresholds will be frozen this year.
- Alcohol and fuel duties have been frozen.
- The current Universal Income uplift of £20 will continue for another six months.
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