Budget update

Coronavirus support. A number of spending commitments have already been announced. They include:

• Furlough to be extended until the end of September
• Government to continue paying 80% of employees' wages for hours they cannot work
• Employers to be asked to contribute 10% in July and 20% in August and September
• 600,000 more self-employed people will be eligible for help as access to grants is widened
• £20 uplift in Universal Credit to be extended for another six months
• Minimum wage to increase to £8.91 an hour from April.

Taxation

• No changes to rates of income tax, national insurance or VAT
• Personal income tax allowance to be frozen at £12,570 from 2022 to 2026
• Higher rate income tax threshold to be frozen at £50,270 from 2022 to 2026
• Corporation tax on company profits to rise from 19% to 25% in April 2023
• Rate to be kept at 19% for about 1.5 million smaller companies

Business, digital and science

• Incentive grants for apprenticeships to rise to £3,000 and £126 for traineeships
• VAT cut for hospitality firms to be maintained at 5% until September
• Interim 12.5% rate to apply for the following six months
• Business rates holiday for firms in England will continue from April until June
• £5bn in re-opening grants for non-essential businesses of up to £6,000 per premises.
• Corporation tax will increase to 25% from 2023 but income tax thresholds will freeze, in the Chancellor's plans to boost the economy after Covid.
• A further 600,000 self-employed people will be eligible for help as access to grants is widened.
• 5% reduced rate of VAT for tourism and hospitality will be extended for six months to the end of September
• The 100% business rates holiday in England will continue from April until June.
• Stamp duty cut will continue until the end of June, with the nil rate band set at £250,000