Furlough extended till Sept,
Budget 2021 – at-a-glance

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LONDON: Chancellor Rishi Sunak unveiled the contents of his Budget in the House of Commons ON Wednesday. Setting out the government’s tax and spending plans for the year ahead, he announced new measures to help business and jobs through the pandemic and to support the UK’s long-term economic recovery and a series of tax-raising plans to help rebalance the public finances, BBC has reported.

Here is a summary of the main points.

LONDON: Chancellor Rishi Sunak presenting budget at the House of Commons on Wednesday.

Coronavirus support

Furlough to be extended until the end of September

Government to continue paying 80% of employees’ wages for hours they cannot work

Employers to be asked to contribute 10% in July and 20% in August and September

Support for the self-employed also to be extended until September

600,000 more self-employed people will be eligible for help as access to grants is widened

£20 uplift in Universal Credit worth £1,000 a year to be extended for another six months

Working Tax Credit claimants will get £500 one-off payment

Minimum wage to increase to £8.91 an hour from April

State of the economy and public finances

UK economy shrank by 10% in 2020

Economy forecast to rebound in 2021, with projected annual growth of 4% this year

Economy forecast to return to pre-Covid levels by middle of 2022, with growth of 7.3% next year

700,000 people have lost their jobs since pandemic began

Unemployment expected to peak at 6.5% next year, lower than 11.9% previously predicted

UK to borrow a peacetime record of £355bn this year.

Borrowing to total £234bn in 2021-22

Taxation

No changes to rates of income tax, national insurance or VAT

Personal income tax allowance to be frozen at £12,570 from April 2022 to 2026

Higher rate income tax threshold to be frozen at £50,270 from 2022 to 2026

Corporation tax on company profits to rise from 19% to 25% in April 2023

Rate to be kept at 19% for about 1.5 million smaller companies with profits of less than £50,000

Stamp duty holiday on house purchases in England and Northern Ireland extended to June, with no tax liability on sales of less than £500,000

No changes to inheritance tax or lifetime pension allowance or capital gains tax allowances

Health and education

£1.65bn to support the UK’s vaccination rollout

£19m for domestic violence programmes, funding network of respite rooms for homeless women

£40m of new funding for victims of 1960s Thalidomide scandal and lifetime support guarantee

£10m to support armed forces veterans with mental health needs

The arts and sport

£400m to help arts venues in England, including museums and galleries, re-open

£300m recovery package for professional sport and £25m for grassroots football

Business, digital and science

Tax breaks for firms to “unlock” £20bn worth of business investment

Firms will be able “deduct” investment costs from tax bills, reducing taxable profits by 130%

Incentive grants for apprenticeships to rise to £3,000 and £126m for traineeships

VAT rate for hospitality firms to be maintained at reduced 5% rate until September

Interim 12.5% rate to apply for the following six months

Business rates holiday for firms in England to continue until June with 75% discount after that

£5bn in Restart grants for shops and other businesses forced to close

£6,000 per premises for non-essential outlets due to re-open in April and £18,000 for gyms, personal care providers and other hospitality and leisure businesses

All alcohol duties to be frozen for second year running

No extra duties on spirits, wine, cider or beer

Fuel duty to be frozen for eleventh consecutive year.