The Budget 2021: The key points made by Rishi Sunak

The Chancellor Rishi Sunak announced the Budget 2021 today, with the key points being as follows:

Covid-19 Support

• Furlough is to be extended until the end of September
• The Government will continue paying 80% of employees’ wages for hours they cannot work
• Employers will 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

Economy & Public Finances

• UK to borrow a record of £355bn this year, the highest borrowing since WWII
• UK economy forecast to return to pre-Covid levels by the middle of 2022
• Unemployment expected to peak at 6.5% next year, lower than 11.9% previously predicted
• Borrowing to total £234bn in 2021-22
• Annual growth set to rebound by 4% this year, followed by 7.3% growth in 2022

Health & Education

• £19m for domestic violence programmes, funding network of respite rooms
• £40m of funding for Thalidomide victims and lifetime support guarantee

Sport & The Arts

• £400m will be invested to help arts venues in England, including museums and galleries, to re-open
• £300m recovery package for professional sport and £25m for grassroots football

Taxation

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