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UK Budget Announced March 2021

3 March 2021 • Laura Masling

UK Budget Announced March 2021

Rishi Sunak today has delivered his second Budget with the UK’s economic agenda dominated by the Covid-19 pandemic.

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.

Some of the budget included:

  • Corporation tax on company profits to rise from 19% to 25% in April 2023
  • Furlough to be extended until the end of September, with employer contributions of 10% expected in July and 20% in August and September
  • Support for the self-employed also to be extended until September
  • Lower VAT rate for hospitality firms to be maintained at 5% rate until September then an interim 12.5% rate will then apply for the following six months
  • All alcohol duties to be frozen for second year running

Kara Stewart our Operations Manager has commented on the announcement

"The much-anticipated budget today will bring some relief for businesses especially with the extension of the Furlough scheme to September, as this scheme has been a lifeline for businesses UK wide over the past year. The duty freeze on Alcohol and extension to the VAT cut for hospitality, accommodation, and attractions, will provide a much-needed boost to hospitality as we focus on recovery and give distillers breathing room whilst dealing with the impacts of Brexit.

It is positive to see the implementation of the new Recovery Loan Scheme to help businesses of all sizes through the next stage of recovery. However, the increase to corporation tax albeit in 2023, does highlight that there will be future hurdles to face.

It’s reassuring to see the introduction of the Restart Grant in England that will be introduced in April. We will wait to see how the details of this will unfold for Scotland based on the announcement of £800 million in consequential funding expected for the devolved nations.”

You can find a breakdown of the budget here

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