As we get ready to emerge from the coronavirus pandemic, yesterday’s budget saw the Chancellor set out a £65 billion three-point plan he believes will protect jobs, strengthen public finances and put the country on the road to recovery.
Delivering the budget in Parliament Rishi Sunak said:
“This Budget meets the moment with a three-part plan to protect the jobs and livelihoods of the British people. First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis. Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that. And, third, in today’s Budget we begin the work of building our future economy.”
For businesses, the main points were:
- The 100% business rates holiday will continue through to June then there will be a two thirds discount for the rest of the year (up to a value of £2m for closed firms)
- For hospitality, the 5% reduced rate VAT will continue until the end of September, then it will be 12.5% for six months. The standard rate will return from April 2022
- There are no changes to rates of income tax, national insurance or VAT, with personal income tax allowance frozen at £12,570 from 2022 to 2026. Higher rate income tax threshold will be frozen at £50,270 from 2022 to 2026
- Corporation Tax will increase to 25% from 2023, however small businesses (with profits of £50,000 or less) will continue to be taxed at 19%. Only businesses with profits of £250,000 or greater will be taxed at the full 25% rate
- Furlough extended until the end of September, but employers will be asked to contribute 10% towards the scheme in July and 20% in August and September
- Grant funding will be available to businesses through a new £5 billion Restart Grant scheme which will offer up to £6,000 to businesses due to re-open in April and up to £18,000 for those in hospitality or leisure opening in May or later
- A new Recovery Loan Scheme will be launched to replace the existing government guaranteed schemes. This will offer loans of between £25,000 and £10million until the end of the year
- Doubling incentives for the apprenticeship scheme to £3,000
Details regarding the above schemes are expected to be published over the next week. We will share these details with you at the first available opportunity.
In today’s budget it was also announced Rochdale has also secured £23.6m from the Towns Fund. The funding is designed to help to level up regional towns, giving them the tools to design and implement a growth strategy for their area and aid recovery from the impacts of Covid-19. The funding for Rochdale is expected to help secure:
- A new advanced machinery and productivity institute, teaming up with universities, including Manchester, Salford and Huddersfield, and serving as a catalyst for the creation of an innovation district.
- A conservation skills studio at Rochdale Town Hall, supporting 25 young people at a time to train in specialist heritage conservation. Partners would include York Glaziers Trust and the Lancashire Conservation Studio.
- New medium sized units at Kingsway Business Park, brining units of 20,000 sq ft to 40,000 sq ft to an established large-scale distribution park.
- New homes in central Rochdale: supporting the delivery of 680 new homes in Lower Falinge and the improvement of 300 existing homes and public realm, led by Rochdale Boroughwide Housing.
- Neighbourhood Rochdale: driving forward a proposal for more than 200 new homes on the former Central Retail Park site in Drake Street, to be delivered by Capital & Centric. It forms the first phase of the council’s station gateway project.
- Developing key brownfield sites for housing: advancing sites where the council has aspirations set against currently prohibitive costs.
- Major improvements to the A58 at St Mary’s Gate, including new safe surface crossing points and exploring additional walking and cycling options.
If you do have any queries regarding yesterday’s announcement or if we can help your business in any way, please do not hesitate to get in touch by either: M – 07811278517 or E – firstname.lastname@example.org
COVID-19: what you need to do
Support for businesses and employers during coronavirus (COVID-19)
04 Mar 2021