Chancellor announces business support in 2021 Budget

Chancellor announces business support in 2021 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. Click here to read the full factsheet.

– 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?

 

We 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 our 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

 

 

Commenting on the Chancellor’s budget, Simon Beardsley, Chief Executive said: 

“It’s been a long road to get to this point but there’s much to welcome in this Budget for business communities across Lincolnshire and beyond.

“It’s pleasing to see the Chancellor has listened and acted on our calls for immediate support to help struggling businesses reach the finish line of this gruelling marathon and to begin their recovery. Extensions to furlough, business rates relief and VAT reductions give organisations a fighting chance not only to restart, but also to rebuild.

“We particularly welcome the massive ‘super deduction’ investment incentive that the Chancellor has put in place for the next two years. This responds directly to our call to encourage those businesses that can to invest and grow.

“While no business will relish paying higher rates of Corporation Tax in future, the impact of the Chancellor’s tough decision is blunted by the big new incentives for investment, lower rates for the smallest firms, and the extension of Coronavirus support measures in the short term.

“This Budget provides reassurance to businesses, provided that they are able to restart and rebuild according to the Government’s road map. If organisations face unexpected bumps in the road, the Chancellor must be prepared to take action until the economy is firing on all cylinders again.”

“This Budget provides reassurance to businesses, provided that they are able to restart and rebuild according to the Government’s road map."

Share this news story:

Other News

12-04-2021
Four in Ten UK Exporters Reporting Decreased Sales in Q1 2021

The recent QES points to advance bookings and export orders not showing signs of improvement, indicating that recovery is di...

Read More
09-04-2021
Global Travel Taskforce sets out framework to reopen international travel

The government has announced a 'traffic light' system for international travel from 17th May, with Covid testing required.

Read More

Join our ever-growing membership base

Become a member
Our Patrons