A Labour budget in all but name

The Chancellor has delivered his first Budget today, 11th March 2020.

Factoid ….until now the UK has not had a Budget for a whole year. That has not happened for over 250 years, since 1768, but we are in uncharted waters.

A brief summary of some main practical points are:

  1. The giveaways will be supported, in the main, by colossal levels of borrowing not detailed on the speech (wonder why?)
  2. Many promises to give more funding to help rough sleepers, roads, schools, the NHS and for “gigabit broadband” but NO money for social care.
  3. Entrepreneurs’ Relief “lifetime allowance” is reduced from £10M to £1M.
  4. National Insurance threshold lifted from £8,632 to £9,500 meaning fewer people will pay.
  5. National Insurance relief for employers who take on veterans.
  6. The previously announced corporation tax cut from 19% to 17% in April 2020 will now NOT happen.
  7. Business rates are “suspended” for properties with a RV of under £51000.
  8. The pension “taper allowance” – which has caused so many problems with high earners such as senior doctors and surgeons refusing to work overtime – has risen by £90,000 from £110,000 to £200,000.
  9. VAT on digital publications, including newspapers, books and journals, is scrapped from December 2020.
  10. Statutory Sick Pay (SSP) now starts on “day 1” of illness/self isolation, not after “day 3”, and there will be help for the self employed.
  11. The new Structures and Buildings Allowance (SBA) rises from 2% to 3%.

No doubt more will come out in the small print so get in touch with us if you see, read or hear anything that affects you directly. We can advise.

 

 

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