The Budget 2021 – Building for the Future.

How is the Rishi Sunak social media train going to repay the £300bn cost of the COVID-19 pandemic to the UK most of us were asking up until this afternoon? A tax on tweets could probably cover the cost within a few days!

This was the question we have all be asking over the past few weeks and now we know the answers.

Rather than wait for the normal budget reviews to be sent out, our joint managing director, Rajesh Jiwani has prepared a short, easy to read summary of the key points that the chancellor has made. Many of these have been released over the past few days, making it very difficult for the Labour leader, Sir Keir Starmer, to make any significant statements afterwards.

Rajesh has prepared a full article with the summary that can be read here but there are some key headlines that will impact businesses and individuals as we look to recover form the pandemic:

Furlough Scheme

This will continue until the end of September 2021. This remains broadly the same as the current support in place. Businesses will be asked to contribute 10% of the cost in July and 20% in August and September respectively.

Self-Employed Support

This will be extended until September 2021. The fourth grant covering Feb 2021 to April 2021 will be a grant of up to 80% on average trading profits up to a maximum of £7,500. The fifth grant of a lower amount will be available from May 2021.

Universal Credit

The universal credit uplift of £20 per week will continue until September 2021, this will be paid as a one-off payment of £500.

Recovery Loan Scheme

Businesses of any size can apply for a loan of £25k to £10m following the end of the CBILS and Bounce Back Loan Schemes. These will be 80% government guaranteed and will be for up to 6 year terms.

Invoice finance will also be available under schemes for £1k to £10m for up to three year terms.

VAT

For the hospitality, accommodation and attractions sector the 5% rate will continue till September 2021 and then a rate of 12.5% will follow for a further 6 months.

Retail, Hospitality and leisure – Restart Grant

There will be restart grant of £6,000 per premises for non-essential retail business.

While a restart grant of £18,000 per premises will be paid to hospitality and leisure businesses.

Business Rates

The business rates holiday is extended to the end of June 2021. Then for the next 9 months this will be discounted by 2/3 (up to £2m per business) for closed businesses, with a lower cap for those that have been able to stay open.

For full details on the impact of the budget read Rajesh’s article or if you want to understand more about how this will impact you and your business please contact us.