Welcome to rolling coverage of Budget 2021. Please feel free to add comments on Twitter (@beertoday) or drop an email to darren.norbury@gmail.com
1.12pm: There will be a ‘super deduction’ tax break for businesses that invest.
1.10pm: Planned increase in alcohol duties will be cancelled.
1.01pm: No increase in income tax, VAT, or national insurance. Increase in personal tax thresholds.
12.49: The 5% reduced rate of VAT in hospitality will be extended until September. There will be an interim rate of 12.5% for the six months after that.
12.48: New business loans will be available.
12.47: Hospitality businesses will be able to get grants of up to £18,000.
12.40pm: The chancellor confirms furlough will be extended to September. Employers will be expected to contribute 10% of the cost in July, and 20% in August and September.
12.35pm: The chancellor, Rishi Sunak, makes his opening remarks. He says there are three elements to this Budget. “First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis. Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that. And, third, in today’s budget we begin the work of building our future economy.”
9am: The press are reporting that chancellor Rishi Sunak will extend furlough until September, at a cost of £10bn. This will form part of a £30bn package business rates relief, VAT cuts, an extension to additional universal credit, and more granst for the self-employed.
UKHospitality chief executive, Kate Nicholls, welcomed the furlough extension, but was disappointed that businesses would be expected to contribute to the scheme from the end of July. She said it was also very disappointing not to have employer national insurance contributions removed from the scheme.
