The Budget - What You Need To Know
Chancellor Rishi Sunak is delivered his first Budget since the coronavirus pandemic was declared. He promised to "level" with the public about the state of the UK economy, amid the biggest national debt for more than half a century.
Mr Sunak stated that including measures announced last year "total fiscal support over this year and next amounts to £407bn."
Corporation tax increase to 25% in 2023.
Despite the increase Mr Sunak says the UK will still have lowest corporation tax in the G7.
He also says he’s creating a ‘Small Profits Rate’ to ensure ONLY businesses with profits over £250,000 will be taxed at the 25% rate. According to Sunak "that means only 10% of all companies will pay the full higher rate."
Fuel and alcohol duties frozen.
Sunak confirms the planned increase on alcohol duties will be cancelled and says it is right to "keep the cost of living low" and so will also be freezing fuel duty.
Basic rate increase next year.
The income tax threshold for paying the basic rate will rise to £12,570 next year (currently £12,500).
Higher-rate payers, the threshold will be £50,270 (currently £50,000).
BOTH rates will stay the same until 2026, and the VAT registration threshold will remain at £85,000 until 2024.
Access to 95% mortgages.
He says first-time buyers will get a "government guarantee" on mortgages, with a deposit of 5%. Many big lenders are already backing the scheme.
Stamp duty holiday extended as planned.
Up-to-£500,000 "nil-rate band" for stamp duty will finish at the end of June, rather than the end of March, as planned.
Business rates holiday extended until June.
"For the remaining nine months of the year, business rates will still be discounted by two thirds, up to a value of £2m for closed businesses, with a lower cap for those who have been able to stay open," says Mr Sunak.
£150m to help pubs, shops and sports clubs.
£150m fund will be set up to allow communities to take ownership of pubs, theatres, shops or sports clubs at risk of closure due to the pandemic.
Furlough extended.
The scheme to save millions of jobs has been extended yet again until the end of September. Employers will be expected to pay 10% towards the hours their staff do not work in July, increasing to 20% in August and September, as the economy reopens.
Eight locations of new freeports.
Rishi announces "a policy on a scale we’ve never done before". He says new freeports will make it easier and cheaper to do business as well as creating jobs.
The eight regions selected to be freeports are: East Midlands Airport, Felixstowe and Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames. And Teesside.
