Budget 2020 bullet point round-up

2 min Read Published: 11 Mar 2020

Coronavirus (Covid-19)

  • Increased resources to NHS, with no limit, for combating Covid-19
  • £5bn emergency response fund
  • Statutory sick pay from day 1 for all workers told to self-isolate even if showing no symptoms of Covid-19
  • Minimum income level for Universal Credit removed
  • Businesses with fewer than 250 employees will get sick pay refunded for up to 14 days
  • Loans for small businesses to assist drop off in production & costs incurred through Covid- 19  
  • Business Rates abolished for small businesses in the leisure industry and some associated industries (below £51,000 rateable value) 
  • £3,000 grants to small business who do not pay business rates 
  • Total of £30bn fiscal stimulus 
  • New loans available to help small businesses

Economy

  • Office for Budget Responsibility (OBR) forecast government borrowing will increase from 2.1% of GDP in 2019/20 to 2.8% in 2021/22
  • £175bn investment over the next 5 years for UK prosperity

Taxation

  • NI threshold increased to £9,500 from April 2020
  • No increase in any alcohol duty
  • VAT on sanitary products abolished from January 2021
  • Fuel duty remains frozen
  • Business rate discount for pubs increased to £5,000 for one year
  • Entrepreneurs relief reduced to a lifetime limit of £1,000,000
  • Junior ISA and Child Trust Fund annual contribution limit will increase from £4,368 to £9,000 in 2020/21
  • Abolish tax relief (for some industries) on ‘red diesel’ in two years
  • VAT on digital books, magazines & newspapers abolished from December 2020
  • Extra funding to secure money from tax evaders
  • Corporation tax to remain at 19%
  • R&D investment rising to £22bn annually
  • Levy on electricity frozen from 2022 in favour of a rise in gas
  • Plastic packaging tax from 2022

Infrastructure

  • £5.2 billion to improve flood defences
  • Environmental improvement through tree planting and other measures
  • Investment in various regions around the UK for growth, roads & superfast broadband coverage
  • £27bn investment in roads & motorways including a ‘pothole fund’