Here are the key takeaways from Chancellor Rishi Sunak’s budget speech:
- A total of £700m will go on supporting arts, culture and sports as they reopen – £25m of which going directly to support grassroots football recovery.
- Chancellor confirms furlough scheme will be extended until the end of September, with the government paying 80% of salary – though employers will be asked to put in 10% from July and 20% from August.
- Incentive payments for hiring new apprentices are being doubled to £3,000 while £126m will be invested to triple the number of new traineeships.
- Help for the self-employed will also be extended with changes meaning 600,000 more people will be eligible.
- Bounce-back and other coronavirus loans for businesses will be replaced by a new recovery loan scheme, 80% guaranteed by the government.
- Companies will be able to offset losses against their tax bills going back up to three years, allowing them to claim additional refunds of up to £760,000.
- A “help to grow” scheme will offer smaller businesses management and digital training.
- Personal income tax thresholds will be frozen from next year until 2026 – at £12,570 for the basic rate and at £50,270 for the higher rate – dragging more people into paying as their salaries rise in line with inflation.
- Corporation tax is to increase to 25% in April 2023. However 70% of companies – with profits of £50,000 or less – will still only be liable for the current 19% rate, while only those with profits of £250,000 or more will pay the full 25%.