UK Budget 2020 Update

1.30 pm 11/03/2020 UK Budget Key Updates

Sunak announces £7bn package of support for the self-employed, businesses and vulnerable people

Chancellor Rishi Sunak has admitted many would be "worried" about their health, the future of their finances and fate of their businesses as COVID-19 cases continue to increase.

Mr Sunak warned of "temporary disruption" to the UK economy, with predictions up to 20% of the workforce could be absent at any one time.
In response to the coronavirus outbreak, the chancellor pledged to give the NHS "whatever extra resources" it needs.

He announced the government will refund, in full, any statutory sick pay for people self-isolating for up to 14 days for businesses with fewer than 250 employees.

"There are millions of people working hard, who are self-employed or in the gig economy. They will need our help too. So to support them, during this period, we’ll make it quicker and easier to get benefits."

And business rates for some firms will also be abolished this year in an "exceptional step", the chancellor said.

Wednesday Budget

“In his budget speech on Wednesday, chancellor Rishi Sunak announced a £30bn stimulus package including cutting business rates to zero this year for companies' with rateable values below £51,000.”

Companies with less than 250 staff will also receive funding totalling up to £2bn to cover the cost of sick pay during the outbreak.

The package of government measures to deal with the coronavirus outbreak amounted to a £30bn fiscal stimulus, Mr Sunak added.

The Bank of England earlier cut interest rates and announced help for businesses in an emergency move to provide support amid the coronavirus crisis.

Senior cabinet minister Michael Gove, the Chancellor of the Duchy of Lancaster, suggested next week's planned talks on the future EU-UK post-Brexit economic relationship may be postponed due to COVID-19.

National Insurance change?

The chancellor has announced that National Insurance Contributions will be raised from £8,632 to £9,500, saving a typical employee £104 a year.

"The GDP forecast without fully accounting for the impact of coronavirus would have led to growth of 1.1% in 2020 and 1.8% in 2021, then 1.5%, 1.3%, and 1.4% in the following years," he says.

Duty

"For only the second time in almost 20 years, that’s every single one of our alcohol duties frozen."

Fuel duty remains frozen
Mr Sunak announces that fuel duty will be frozen for another year.

"I have heard representations that after nine years of being frozen, at a cost of £110bn to the taxpayer, we can no longer afford to freeze fuel duty," he says.

Chancellor to scrap diesel tax relief
The chancellor says he will scrap a scheme that allows companies in some sectors to pay duty of just over 11p per litre for diesel, compared to almost 58p per litre for everyone else.

"I’m certainly mindful of the fiscal cost and the environmental impacts," he continues.

£500m promised for car charging hubs
Mr Sunak has promised to spend £500m to support the rollout of new rapid charging hubs for electric cars, which he says will ensure that drivers are never more than 30 miles away from being able to charge their vehicle.

Infrastructure spending boost confirmed
Mr Sunak has confirmed reports that the government will boost spending on infrastructure.
"We’re going to build broadband, railway, roads, he says, as he promises £5bn to get gigabit-capable broadband into the hardest to reach places and £510m of new investment into the shared rural mobile phone network

UK to 'increase taxes on pollution
Chancellor Rishi Sunak gets to the green part of his speech, including raising the levy on gas and a new tax on plastics packaging.

Flood defences get funding boost
Following widespread recent UK flooding, the chancellor unveils funding to boost flood defences.

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