2021 Budget Round-up For Businesses

As we get ready to emerge from the coronavirus pandemic, today’s budget saw the Chancellor set out a £65 billion three-point plan he believes will protect jobs, strengthen public finances and put the country on the road to recovery. 

Delivering the budget in Parliament Rishi Sunak said: 

“This Budget meets the moment with a three-part plan to protect the jobs and livelihoods of the British people. First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis. Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that. And, third, in today’s Budget we begin the work of building our future economy.” 

For businesses, the main points were: 

• The 100% business rates holiday will continue through to June then there will be a two thirds discount for the rest of the year (up to a value of £2m for closed firms) 
• For hospitality, the 5% reduced rate VAT will continue until the end of September, then it will be 12.5% for six months. The standard rate will return from April 2022 
• There are no changes to rates of income tax, national insurance or VAT, with personal income tax allowance frozen at £12,570 from 2022 to 2026. Higher rate income tax threshold will be frozen at £50,270 from 2022 to 2026 
• Corporation Tax will increase to 25% from 2023, however small businesses (with profits of £50,000 or less) will continue to be taxed at 19%. Only businesses with profits of £250,000 or greater will be taxed at the full 25% rate
• Furlough extended until the end of September, but employers will be asked to contribute 10%towards the scheme in July and 20% in August and September 
• Grant funding will be available to businesses through a new £5 billion Restart Grant scheme which will offer up to £6,000 to businesses due to re-open in April and up to £18,000 for those in hospitality or leisure opening in May or later 
• A new Recovery Loan Scheme will be launched to replace the existing government guaranteed schemes. This will offer loans of between £25,000 and £10million until the end of the year 
• Doubling incentives for the apprenticeship scheme to £3,000 

 Robin McGowan, Chief Executive of Salisbury BID said: “We know 2020 was a terrible year for many businesses as the UK economy shrunk by 10%, however, we can look ahead with hope as the Chancellor today revealed an annual growth of 4% is predicted for this year. The continuation of the business rates holiday will help many of our levy payers, with a new Restart Grant scheme offering help to those planning to re-open soon. We look forward to continuing reactive support from the government for town and city centres as they start to re-open over the coming months.”  

Wiltshire Council has responded to the Budget saying it 'brings welcome news of more support for businesses and potential investment in Wiltshire.'

Cllr Philip Whitehead, Leader of Wiltshire Council, said: “It’s great news that the Chancellor has announced further funding for businesses affected by the COVID-19 pandemic in today’s Budget, plus increased opportunities for investment.

“The restart grants and extension of the VAT holiday are welcome news for Wiltshire businesses, and the extension in the Stamp Duty holiday will enable our Land Charges teams to help more people to buy property in the county.

“We’re awaiting more information on the business funding, including guidance on eligible businesses and how much we will be able to grant to support Wiltshire businesses, so we’d ask that people please do not contact us to find out more about this at present, as this will delay the payment of current grants.

“Our team is currently working hard to assess all Additional Restrictions Grant (ARG) applications and are processing payment where businesses meet the criteria. They are also currently processing payments for the Local Restrictions Support Grant payments, for the period of 16 February 2021-31 March 2021.

“We will share more information on any business grants, including any future rounds of funding, when we have it. In the meantime, I’d urge all businesses to sign up on our website for our business newsletter to be kept up-to-date with any new developments."

Businesses can sign up to the Wiltshire Council business newsletter here.

More information on today’s budget announcement can be found on the goverment website, plus, the Salisbury BID team are on hand for any advice and support. Contact us on info@salisburybid.co.uk