HM Treasury Budget Summary

Today the Chancellor of the Exchequer has presented his budget to the House of Commons. Todays budget is a bold new budget to kick start the economy, up skill the nation and to help level up.

“As well as immediate support- continuing and extended grants, the UC uplift, cuts to VAT and business rates, this budget also will help us rebuild. I know business is raring to go. The freeport will be a complete gamechanger- a customs zone, tax reliefs, planning freedoms and support for regeneration and innovation. But there is also new support to incentivise investment and increase productivity and jobs. I’m delighted fuel duty and alcohol duties have also been frozen. As we come out of this pandemic let’s turbocharge our economy, support our local businesses, and put Portsmouth back on the path of regeneration and growth. Thanks to everyone who helped us make the case.”

Penny Mordaunt MP

Key budget headlines:

  • Furlough extended! The furlough scheme will continue. No changes until July, where we will ask for employers to pay 10% of the scheme and then 20% in August and September.

  • The £20 Universal Credit uplift has been extended.

  • The self-employed income scheme (SEIS) has been extended and improved. People who did not previously qualify due to no tax return can now take part, provided they have submitted a return for 2019/20.

  • A new 'Restart' grant in April. For non-essential retail, which will open first, this will be up to £6,000 per premises. For hospitality, leisure and personal care including salons and gyms, this will be worth £18,000.

  • There will be a business rates holiday until June, then rates will be discounted by two thirds.

  • For the hospitality and tourism sector, the reduced rate of VAT of 5% will continue to 30thSeptember, after which it will be 12.5% until the new financial year.

  • Small business will be protected from rises in corporation tax.

  • There will be an increase in the personal allowance to £12,570, after which it will be frozen until 2026.

  • If companies invest, we will enable them to deduct that from their tax bill at 130%. OBR thinks this will boost investment by 10%

  • Alcohol duties frozen.

  • Fuel duty frozen.

  • New support to increase productivity- training for managers and support to develop digital capacity.

  • A new £150 million fund to help buy community assets ( Portsmouth Football Club's community buyout experience was taken as the model for this).

  • And we have our Freeport!! - Solent Freeport!

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