• Isabella

BUDGET 2020


Coronavirus response


- HMRC coronavirus helpline set up to support businesses and self-employed people concerned about not being able to pay their tax due to covid-19

- £5bn emergency response fund to support the NHS and other public services

- Statutory sick pay will be paid to all those who choose to self-isolate, even if they don't have symptoms

- Contributory employment Support Allowance benefit claimants will be able to claim sick pay on day one, not after a week

- £500m hardship fund to help vulnerable people

- Firms with fewer than 250 staff will be refunded for sick pay payments for two weeks

- Small firms will be able to access "business interruption" loans of up to £1.2m

- Business rates holiday for firms in the retail, leisure and hospitality sectors with a rateable value below £51,000

- Any company eligible for small business rates relief will be allowed a £3,000 cash grant – a £2bn injection for 700,000 small businesses


Personal taxation and wages


- National Insurance Contributions tax threshold to rise from £8,632 to £9,500 - saving employees just over £100 a year

- 0.5% VAT on women's sanitary products, the tampon tax, to be scrapped

- Personal allowance remains at £12,500

- Pensions tapered annual allowance raised - Plans to significantly reduce the number affected by the tapered annual allowance, which is to increase by £90,000


Alcohol, tobacco and fuel


- Fuel duty for be frozen for the 10th consecutive year

- Duties on spirits, beer, cider and wine to be frozen

- Business rate discounts for pubs to rise from £1,000 to £5,000 this year


Business, digital and science

- System business rates to be reviewed later this year

- Entrepreneurs' Relief will be retained, but lifetime allowance will be reduced from £10m to £1m. About 80% of small businesses are not affected. The reforms save £6bn over the next five years

- £5bn to be spent on getting gigabit-capable broadband into the hardest-to-reach places

- VAT on digital publications, including newspapers, books and academic journals to be scrapped from December

- Corporation tax kept at 19%


Environment and energy


- Plastic packaging tax to come into force from April 2022

- Manufacturers and importers whose products have less than 30% recyclable material will be charged £200 per tonne

- Fuel subsidies for off-road vehicles - known as red diesel - will be scrapped "for most sectors" in two years’ time

- Red diesel subsidies will remain for farmers and rail operators

- £120m in emergency relief for communities affected by this winter's flooding and £200m for flood resilience

- Total investment in flood defences to be doubled to £5.2bn over next five years

- £640m "nature for climate fund" to protect natural habitats, including 30,000 hectares of new trees


Transport, infrastructure and housing


- More than £600bn is set to be spent on roads, rail, broadband and housing by the middle of 2025

- £2.5bn will be made available to fix potholes and resurface roads over five years

- £1.5bn in capital spending on further education colleges

- £650m package to tackle homelessness, providing an extra 6,000 places for rough sleepers

- Stamp duty surcharge for foreign buyers of UK properties to be levied at 2% from April 2021

- £1bn fund to remove all unsafe combustible cladding from all public and private housing higher than 18 metres

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