Budget 2020 bullet point round-up

2 min Read

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

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

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

£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’