Chancellor announces business support in 2021 Budget

Business Support

– Extension of the Coronavirus Job Support Scheme (CJRS) until end of September 2021

– A fourth and fifth grant from the Self-Employment Income Support Scheme (SEISS) will be available, worth 80% of three months’ average trading profits up to £7,500

– 100% Business Rates holiday to continue until the end of June

– £5bn Restart Grant scheme with grants of up to £18k per firm

– Continuing the Statutory Sick Pay (SSP) Rebate Scheme – details on steps for closing this scheme will be set out in due course

– Recovery Loan Scheme – businesses of any size can apply until the end of the year

– 5% Reduced rate of VAT for hard hit sectors extended for six months. It will then be 12.5% from 1st October, and returning to the standard rate in April 2022

– Help to Grow: Management will help thousands of SMEs get world-class management training.

– Help to Grow: Digital will help them develop digital skills with free expert training and a 50% discount on new productivity-enhancing software

Packages and investment pots

– £220m UK Community Renewal Fund supports people and communities most in need by creating opportunities to trial new approaches and innovative ideas at a local level

– The Community Ownership Fund is a £150m pot to help communities can support local facilities, community assets and amenities most important to them.

– £4.8b Levelling Up Fund invest in infrastructure that improves everyday life, with the first round of funding starting in 21-22.

– £375m Future Fund: Breakthrough investing in highly innovative companies that are aiming to raise at least £20 million of funding.

– £300m recovery package for sport and £25m of new funding to support grassroots football

– An extra £126m into the traineeship scheme – currently the government pays firms £2,000 per trainee, but this will rise to £3,000

– £400m for the arts – an extra £300m has been put into the £1.57bn Culture Recovery Fund

– £1bn for 45 new Town Deals

Infrastructure, Net Zero & More

– Infrastructure Bank will boost investment to accelerate progress to Net Zero

– Green Savings Bond – a sovereign green savings bond for retail investors, allowing savers to help drive the country’s transition to net zero by 2050

– Eight freeports have been announced, including East Midlands, Humber, Teesside

– £20m programme to support the development of floating offshore wind technology across the UK

– £68m UK-wide competition to implement several first-of-a-kind energy storage prototypes or technology demonstrators.

– A “fast-track” visa scheme to help start-up and rapidly growing tech firms source talent from overseas

– An extra £1.65bn for the Covid vaccination rollout to help it reach its target of offering a first dose to every adult by 31 July

Taxes, income and property

– 130% Super Deduction – companies can cut their taxes by up to 25p for every pound they invest. For the next two years, when companies invest they may reduce their tax bill by 130% of the cost. Click here to read the full factsheet.

– Bringing back 95% mortgages with a mortgage guarantee and stamp duty cut until the end of June. The stamp duty holiday will be extended for properties under £250,00 until the end of September.

– Income tax: An increase in the Personal Allowance to £12,570 in April 2021, maintained at that higher level until April 2026

– Pension Lifetime Allowance frozen at £1.1m up to an including until 2025-26

– Inheritance tax and Capital Gains Tax frozen until April 2026

– Corporation tax will increase from 19% to 25% from April 2023. Companies with profits under £50,000 will remain at 19%

– Universal Credit uplift of £20 will be continued until the end of September, and will be paid as a one-off payment of £500

– The National Living Wage will rise to £8.91 from April

– Trading loss carry-back rule has been temporarily extended from one to three years for losses of up to £2m

– Alcohol and fuel duties continue to be frozen