Budget at-a-glance as Chancellor pledges NHS ‘any extra resources it needs’

By The Press Association11th March 202011th March 2020News EnglandBusiness / Funding / Finance, Government / Politics, News England, NHS

Here are the main points from Chancellor Rishi Sunak’s Budget:

Outlining the Government’s economic response to the Covid-19 outbreak, Mr Sunak unveiled an additional “fiscal loosening” of £18 billion to support the economy this year, taking the total fiscal stimulus to £30 billion.
The NHS will receive “any extra resources it needs”, whether that is “millions or billions of pounds” to deal with Covid-19 on top of £6 billion of new funding to support the NHS over this Parliament.
Statutory sick pay (SSP) will be extended to all of those eligible and asked to self-isolate, even if they are not showing symptoms, and the Government will meet the cost for businesses with fewer than 250 employees of providing SSP for 14 days.
A temporary coronavirus business interruption loan scheme will be introduced for banks to offer loans of up to £1.2 million to support small and medium-sized businesses with their cash flow.
Business rates for businesses with a rateable value below £51,000 to support small businesses during the Covid-19 outbreak.
The Chancellor said borrowing will increase from 2.1% of GDP in 2019/20 to 2.4% in 2020/21 and 2.8% in 2021/22 and borrowing will then fall to 2.5%, 2.4% and 2.2% in the following years.
The National Insurance threshold will increase from £8,632 to £9,500 and the National Living Wage will rise to £10.50 per hour by 2024 if economic conditions allow.
Fuel duty will be frozen for another year, £26 billion will be invested in roads, and the Government will abolish £2.4 billion annual tax relief on red diesel in two years’ time, but agriculture, rail, domestic heating and fishing will be exempt.
Duties will be frozen on beer, cider, wine and spirits, and the Government will provide £1 million to support Scottish food and drink overseas and £10 million to help distilleries “go green”.
The lifetime limit for entrepreneurs’ relief will be reduced from £10 million to £1 million, saving £6 billion a year, and research and development investment will be increased to £22 billion a year.
A “plastics packaging tax” charging manufactures and importers £200 per tonne on packaging made of less than 30% of recycled plastic will be introduced in April 2022.
The Treasury will make £120 million available immediately to repair defences damaged in the winter floods and the Government will double investment to £5.2 billion flood defences over six years.
Mr Sunak said more than £600 billion would be spent investing in future prosperity over the next five years, taking net public investment to the highest levels in real terms since 1955.
The so-called tampon tax will be abolished, and VAT on books, newspapers, magazines and academic journals will be scrapped from December 1.
A £1 billion building safety fund will be set up to ensure all unsafe combustible cladding is removed from buildings above 59ft (18m) tall.