This will facilitate the adjustment necessary for the economic recovery and maximise value for the taxpayer while protecting jobs, livelihoods, individuals and businesses. The pandemic and the government’s policy response has led to an unprecedented increase in government borrowing and debt. This is necessary and affordable in the short term, but it would not be sustainable to allow debt to continue to rise indefinitely. The Budget therefore takes action to strengthen the public finances once a durable recovery has taken hold. Setting out a transparent and credible plan now to put the public finances on a sustainable path in the medium term provides certainty and stability.
The Budget takes significant steps to address UK productivity growth which has consistently lagged its international peers and is unevenly distributed, deepening geographical inequalities. Alongside this, the Budget extends business rates reliefs, Statutory Sick Pay support and the VAT cut for the https://intuit-payroll.org/oregon-tax-rates-rankings-oregon-taxes/ UK’s tourism and hospitality sector. The Recovery Loan Scheme will ensure that businesses in all parts of the UK can access the finance they need. The new one-off Restart Grants will give businesses further certainty in order to plan ahead and safely begin trading again over the coming months.
2 Debt management policy
Her Majesty’s Revenue and Customs (HMRC) has set up a dedicated COVID-19 helpline to help those in need, and they may be able to agree a bespoke Time to Pay arrangement. Time to Pay was successfully used in response to flooding and the financial crisis, giving businesses a time-limited The Best Church Accounting Software 2023 Review deferral period on HMRC liabilities owed and a pre-agreed time period to pay these back. These tailored arrangements will give a business the time it needs to pay HMRC to support their recovery while operating through any temporary financial challenges that occur.
The government is also introducing a new £20 million cross-disciplinary proof-of-concept research fund, which will help prospective founders in universities demonstrate the commercial potential of their research. Growth Fund – Following positive feedback from industry, the government is confirming its intention to establish a Growth Fund within the British Business Bank. The Growth Fund will give pension schemes access to the BBB’s pipeline of opportunities, crowding private capital into the UK’s most promising businesses.
21 Scotland, Wales, and Northern Ireland
Payments for employers who hire new apprentices – The government introduced a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st March 2021. These payments were in addition to the existing £1,000 payment the government already provides for new year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies. Freeports in Scotland, Wales and Northern Ireland – Freeports will benefit the whole of the UK. Discussions continue between the UK Government and the devolved administrations to ensure the delivery of Freeports in Scotland, Wales and Northern Ireland as soon as possible. Alcohol duty – To further support the hospitality industry and its suppliers, the duty rates on beer, cider, wine and spirits will be frozen for another year.
- On 25 November 2020, the government and the UK Statistics Authority (UKSA) published the response to the consultation on UKSA’s proposal to address the shortcomings of the RPI measure of inflation.
- This Budget will also unlock more than £40 million of funding to reinstate passenger services on the Okehampton-Exeter line, subject to final approval of costs and contracts.
- Supporting apprenticeships across different employers[footnote 59] – The government will introduce a £7 million fund from July 2021 to help employers in England set up and expand portable apprenticeships.
- With the OBR forecasting a strong rebound in activity in the second half of this year, the measures set out in the Budget support economic recovery over the medium-term.
The government will also go further to tackle the scourge of plastic waste by introducing a Plastic Packaging Tax, as well as providing further funding to encourage producers to make their packaging more recyclable. In addition, the government will promote air quality improvement by removing the entitlement to use red diesel except for agriculture, fish farming, rail and non-commercial heating. The government will tackle air pollution by providing £304 million to help local authorities reduce nitrogen dioxide emissions and improve air quality. The Budget also includes action to reduce rough sleeping, providing £643 million for accommodation and support services to help people off the streets. The government is committed to levelling up across the UK by raising productivity and growth in all nations and regions, creating opportunity for everyone, and addressing disparities in economic and social outcomes. Lifetime ISA (LISA) withdrawal charge reduction – To help individuals access savings if needed during the pandemic, the government temporarily reduced the LISA withdrawal charge from 25% to 20% for unauthorised withdrawals made between 6 March 2020 and 5 April 2021 across the UK.
64 Invest in government science capabilities and public science estate
This builds on the Spending Review 2020 announcement that the construction phase will be halved from 10 to 5 years as part of Project Speed. Modern Methods of Construction (MMC) Taskforce – The Ministry of Housing, Communities and Local Government (MHCLG) will establish an MMC Taskforce, backed by £10 million of seed funding, to accelerate the delivery of MMC homes in the How to prepare a statement of retained earnings for your business UK. The Taskforce will consist of world-leading experts from across government and industry to fast-track the adoption of modern methods of construction. The Taskforce will work closely with local authorities and Mayoral Combined Authorities, including the West Midlands Combined Authority and the Liverpool City Region who have already brought forwards ambitious proposals.