Analyses & Studies

Budget Announcement 2021

The Chamber welcomes the Budget announcement of an overall £25bn in direct support for businesses – much needed to get us through what is hopefully the last stretch of lockdown.

In his budget speech, the Chancellor confirmed the extension of the furlough scheme until the end of September, as previously announced in the media.

Employees will continue to receive 80 percent of their wages until the end of the scheme but companies will be asked to make additional contributions in the summer – 10 percent in July and 20 percent in August and September.

A £5bn restart grant was announced to support businesses rebound after lockdown, part of a total package of £25bn in direct support, including new loan schemes to replace the government-backed bounce back loan (BBL) and coronavirus business interruption loan scheme (CBILS).

SMEs can benefit from a Help to Grow scheme, which opens up access to management training through leading business schools, technology advice and discounted software to improve productivity.

Corporation tax

The speech included the Chancellor’s plans to increase tax to from 19 percent to 25 percent on large company profits from 2023.

The rate will be tapered so that only businesses with profits of more than £250,000 will be taxed at the full 25 percent rate. Firms making less than £50,000 will remain on the lower 19 percent rate.

Retail, hospitality and personal care

The business rates holiday for retail and hospitality firms will continue until the end of June. For the remaining nine months of the financial year, business rates will be discounted by two thirds, up to a value of £2m for closed firms.

Retailers, which are due to reopen from April, will be eligible for grants of up to £6,000 per premises. Pubs, bars and restaurants which will be closed until June, will be able to claim grants of up to £18,000.

Access to skilled talent

The Chancellor announced reforms to the immigration system to help businesses attract international talent to the UK, including fast-track visas for global talent and a scale-up stream for recognised UK high-growth companies.

For more information...
...and a detailed list of the budget measures please visit gov.uk
...and some insight and commentary from experts, you can consult Blick Rothenberg Budget Hub, and read London First comments on Chancelor's Budget