RISHI Sunak has set out his Budget 2021 plan to help struggling families and keep British businesses afloat.
The Chancellor revealed extra help for 600,000 self employed people with grants of up to £7,500 and said furlough is to be extended until September.
The Chancellor also revealed that hundreds of thousands of self-employed Brits, many of whom became self-employed in 2019-20, can now claim direct cash grants under the Self-Employment Income Support Scheme.
Previously they could only claim if they had filled in a recent tax return, which meant millions were shut out.
The Chancellor also extended the stamp duty holiday until June 30 as house prices rocketed 6.9 per cent year-on-year last month to a record high of £231,061 last month, new data shows.
A £20 a week Universal Credit uplift in payments has also been extended for another six months for low income households.
You can watch the Budget here, live on this page, by clicking the video above and follow all the latest news, updates and analysis of what the Budget means for you on our live blog below…
LABOUR’S KEIR STARMER IS NOW SPEAKING
Keir Starmer is now addressing the House of Commons.
Rishi Sunak delivering his Budget statement to the House of Commons.
SUNAK CONFIRMED DARLINGTON CAMPUS
Rishi Sunak confirmed the Treasury would establish a new economic campus in Darlington, and said there would be more than £1 billion for 45 new towns deals.
He also said: “We’re creating a £150 million fund to help communities across the UK take ownership of pubs, theatres, shops, or local sports clubs at risk of loss – putting more power in the hands of local people.”
RISHI SUNAK HAS FINISHED GIVING HIS STATEMENT
The Chancellor has finished his statment for the Budget 2021.
WHAT IS A FREEPORT?
According to the Chancellor freeports are ” special economic zones with different rules to make it easier and cheaper to do business.
“They’re well-established internationally, but we’re taking a unique approach. Our Freeports will have: Simpler planning – to allow businesses to build; Infrastructure funding – to improve transport links; Cheaper customs – with favourable tariffs, VAT or duties; And lower taxes – with tax breaks to encourage construction, private investment and job creation.”
8 NEW FREEPORTS LOCATIONS IN ENGLAND
Eight new freeports locations in England: East Midlands Airport. Felixstowe and Harwich. Humber. Liverpool City Region. Plymouth. Solent. Thames. And Teesside.
£1BILLION ANNOUNCEMENT FOR 45 NEW TOWN DEALS
“From Castleford to Clay Cross; Rochdale to Rowley Regis; and Whitby to Wolverhampton. And let me pay tribute to local leaders like the brilliant Mayor for the West Midlands, Andy Street, who are making the case for investment in their area,” Mr Sunak said.
There will be visa reforms aimed at skilled workers and migrants including a new unsponsored points-based to attract “the best and most promising international talent in science, research and tech”.
BOOST IN BUDGET
Mr Sunak announced there is a £1.6billion to continue the vaccine rollout in becoming the “scientific superpower”.
NEW UK WIDE SCHEME – HELP TO GROW
It will offer management training to tens of thousands of small and medium sized businesses and the Government will pay 90% of the cost.
There will be help to provide businesses with free expert training on how to develop their digitial skills with a 50% discount on new productivity-enhancing software – worth up to £5,000 each.
Both schemes will begin in Autumn.
NEW SAVINGS FOR GREEN PRODUCTS
Rishi Sunak has announced a retail savings product which will give UK savers a chance to support green projects.
UK INFRASTRUCTURE BANK ANNOUNCEMENT
A UK Infrastructure Bank will be built in Leeds and will invest across the Uk in public and private projects to finance the green industrial revolution.
It will begin in Spring with an initial capitalisation of £12billion.
It will be expected to support at least £40billion of total investment infrastructure.
FUEL DUTY ALSO CANCELLED
An increase in fuel duty has also been cancelled.
ALCHOLIC DUTIES FROZEN
Alcoholic duties will be frozen for the second year in a row, the third time in two decades.
‘SUPER DEDUCTION’ ANNOUCNED
For the next two years, when companies invest, they can reduce their tax bill by reducing it by 130% of the cost.
SMALL PROFITS RATE CREATED
Mr Sunak announced a protection of small businesses with profits of £50,000 or less by creating a Small Profits Rate maintained at the current rate of 19%.
Corporation tax paid by companies will increase in 2023 to 25%.
NEW TASKFORCE OF 1,00 INVESTIGATORS TO BE CREATED
A new taskforce of up to 1,000 investigators is to be set up to tackle fraud in the Governments covid schemes.
HIGHER RATE OF THRESHOLD WILL INCREASE NEXT YEAR
The Higher Rate threshold will increase next year to £50,270 and will remain the same until April 2026.
PERSONAL TAX THRESHOLDS WILL INCREASE NEXT YEAR
The personal tax thresholds will increase next year to £12,750 however it won’t move this year.
It will keep at that number until April 2026.
NO RISE IN RATES OF TAX
Mr Sunak told the House of Commons that there would be no increase in the income tax, national insurance or VAT.
Instead Mr Sunak plans to freeze personal tax thresholds.
BUSINESSES OF ANY SIZE CAN APPLY FOR LOAN
Rishi Sunak said some businesses will still need loans to see them through despite the restart grants, telling MPs: “As the Bounce Back Loan and CBIL schemes come to an end, we’re introducing a new recovery loan scheme to take their place.
“Businesses of any size can apply for loans from £25,000 up to £10 million, through to the end of this year.”
ECONOMIC RESPONSE IS WORKING SAYS SUNAK
Sunak says the economic forecasts out today show the Government’s economic response is working.
He says the OBR expects the economy to grow by 4% this year, then 7.3% in 2022, then 1.7%, 1.6% and 1.7% in the following years.
£65BILLION IN SUPPORT
An additional £65billion of support will be included in this years Budget in response to the pandemic.
NIL RATE BAND WILL BE EXTENDED UNTIL SEPTEMBER
The £500,000 nil rate band will be in place until the end of September.