The Budget will be on 3 March and Chancellor Rishi Sunak will make a statement to MPs in the House of Commons outlining the state of the economy and the government’s plans for raising or lowering taxes. The Budget includes decisions on what the government will spend money on and forecasts for how the UK economy could perform in future.
At the upcoming Budget, we expect the government will outline further detail on economic support to help protect jobs and livelihoods across the UK. That has been their priority throughout the past year, and they state it will be the priority for the year to come.
Yesterday we heard the news that the government was set to launch a £5 billion fund in England to help the High Street recover from Covid.
The Chancellor said the grants, worth up to £18,000 per firm, will help shops and pubs reopen as England eases lockdown. Details will follow on Wednesday and we will keep you informed of any details and how to claim in due course.
Pre-Budget news releases report the Chancellor is set to announce a £126 million boost for traineeships in England. The scheme will include a new “flexi-job” apprenticeship that will enable apprentices to work with a number of different employers in one sector. The boost to existing apprenticeship and traineeship programmes will include paying up to double the current cash incentive to firms who take on an apprentice, regardless of age.
A mortgage guarantee scheme to help people with small deposits get on the property ladder is also set to be announced and the government will offer incentives to lenders, bringing back 95% mortgages
There is also talk of the Chancellor announcing the creation of “freeports” to help boost trade and manufacturing. Freeports are areas around a port or airport, where goods can be imported without having to pay import taxes, and these taxes only become payable when the goods leave the freeport and are distributed elsewhere in the UK. If goods are re-exported they do not have to pay the relevant UK taxes. The building and operation of freeports in deprived areas could help stimulate the local economy in England. The other countries of the UK have their own freeport policies.
We will be issuing a summary of the Budget Statement following the Chancellor’s Budget. This will also be available on our website. It will be interesting to see if there are any tax increases, or will he focus on stimulating economic growth?
If you have any concerns or queries relating to the announcements made within the 2021 Budget Statement, our tax experts are available to guide you through the tax maze and help you with bespoke solutions to ensure that you and your business are as tax efficient as possible.