Budget 2021: What you need to know

Budget 2021 sets path for recovery

Chancellor’s three-point plan to protect jobs and strengthen public finances:

• billions to support businesses through the pandemic
• investment-led recovery as UK emerges from lockdown
• future changes to strengthen public finances

Chancellor of the Exchequer Rishi Sunak said his immediate priority continues to be supporting those hardest hit, with extensions to furlough, self-employed support, business grants, loans and VAT cuts – bringing total fiscal support to over £407 billion. He also set out plans to drive jobs, growth and investment to help the economy rebound.

Summary of the 2021 Budget: 

• An extension of the Coronavirus Job Support Scheme to September 2021 across the UK.
• An extension of the UK-wide Self Employment Income Support scheme to September 2021, with 600,000 more people
• who filed a tax return in 2019-20 now able to claim for the first time.
• A one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.
• A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.
• Extension of the Film & TV Production Restart scheme in the UK, with an additional £300 million to support theatres, museums and other cultural organisations in England through the Culture Recovery Fund.
• Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.
• 750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief.
• Extension of the apprenticeship hiring incentive in England to September 2021 and an increase of payment to £3,000.
• £7 million for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.
• Additional £126 million for 40,000 more traineeships in England, funding high quality work placements and training for 16-24 year olds in 2021/22 academic year.
• £90 million funding to support our government-sponsored national museums in England due to the financial impact of Covid-19.
• £300 million for major spectator sports, supporting clubs and governing bodies in England as fans begin to return to stadia.
• Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.
• The government is extending the loss carry back rules worth up to £760,000 per company.
• £100 million for a new Taxpayer Protection Taskforce to crack-down on COVID fraudsters who have exploited UK Government support schemes.
• A new Help to Grow scheme to offer up to 130,000 companies across the UK a digital and management boost.

FOR FULL INFORMATION CLICK HERE