As expected, the budgets main focus was on how we can overcome the corona virus, by providing extra funding to the NHS and supporting the economy, which will inevitably suffer as a result of the outbreak.
Here are the key points from the budget:
- Additional funding for the NHS
- Sick pay will be paid to all who self-isolate or contract the virus without qualifying period
- Businesses that employ less than 250 staff members will be reimbursed for sick pay paid to employees as a result of coronavirus
- Small business rate relief will be abolished for all eligible businesses with a rateable value of less than £51000
- Businesses that are already eligible for small business rate relief will receive a £3000 cash grant
- Businesses can defer tax payments to HMRC to help them manage cash flow if they struggle as a result of Coronavirus
All in all this looks like a great way to protect our economy from the threats the coronavirus poses. There are gaps, and it will still be a struggle for business on the whole. Extra money for the NHS is always a bonus, I hope they can find the extra staff and resources they will need. I think the NHS should always be a priority in any budget.
Business rates! Yey! Business rates have always been a strain for smaller business and a massive barrier to entry for new businesses too. This is a temporary measure, to help with cash flow, however the chancellor has launched a review into business rates and the results will be shared in autumns budget. Lets hope these changes are here to stay.
I think there are gaps, the self-employed without a brick-and-mortar premises will only receive employment and support allowance and the employed SSP. Whilst this will be paid from day one of self-isolation or sickness as a result of coronavirus, it is only £94.25 per week, and when you compare this to the average salary for £29009 it’s still a long way off and individuals will struggle with bills.
- Personal allowance to remain at £12500 for the 20/21 financial year
- National insurance threshold to rise from £8630 to £9500 from April
- Corporation tax is frozen at 19% for the 20/21 financial year
- A business rate review has been launched today with the results being shared in the Autumn budget
The personal allowance is remaining the same, which is slightly disappointing, it has risen consistently over the past few years, however the NI threshold is rising so there will still be a benefit to our pockets all be it small!
Corporation tax remains at 19%, which it has been at since 2019. This was expected as Boris Johnson pledged to keep it the same in his election campaign.
The review of business rates is promising, I hope this means the government is recognising the strain these rates put onto small business and how it makes it really difficult for new businesses to find a premises.