Budget 2021

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The Chancellor has delivered a budget dominated by the battle to recover from the COVID-19 crisis – which he has put a £407 billion price tag on.

With a raft of measures to shore up the economy and support businesses and other organisations hit by the pandemic, below we have highlighted some of the points from Chancellor Rishi Sunak's budget speech:

  • Furlough scheme extended until the end of September, with the government paying 80% of salary though employers will be asked to put in 10% from July and 20% from August

 

  • Help for the self-employed will also be extended with changes meaning 600,000 more people will be eligible

 

  • Incentive payments for hiring new apprentices are being doubled to £3,000 while £126m will be invested to triple the number of new traineeships

 

  • A total of £700m will go on supporting arts, culture and sports as they reopen

 

  • Bounce-back and other coronavirus loans for businesses will be replaced by a new recovery loan scheme 80% guaranteed by the government

 

  • The business rates holiday for retail, hospitality and leisure sector businesses has been extended to the end of June and for the remaining nine months of the fiscal year they will still be discounted by up to two thirds

 

  • Reduced rate of 5% VAT for the hospitality and tourism sectors has been extended to the end of September, and will only go up to 12.5% after that, before returning to 20% next April

 

  • Corporation tax is to increase to 25% in April 2023 - but it will still be the lowest rate in the G7. However, 70% of companies - with profits of £50,000 or less will still only be liable for the current 19% rate while only those with profits of £250,000 or more will pay the full 25%

 

  • Companies will be able to offset losses against their tax bills going back up to three years, allowing them to claim additional refunds of up to £760,000

 

We would be interested to hear from any MKBLP members on their thoughts about the budget, and share any published material from whitepapers/podcasts/interviews, anything which can help fellow members navigate their way through.

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