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:
- The giveaways will be supported, in the main, by colossal levels of borrowing not detailed on the speech (wonder why?)
- Many promises to give more funding to help rough sleepers, roads, schools, the NHS and for “gigabit broadband” but NO money for social care.
- Entrepreneurs’ Relief “lifetime allowance” is reduced from £10M to £1M.
- National Insurance threshold lifted from £8,632 to £9,500 meaning fewer people will pay.
- National Insurance relief for employers who take on veterans.
- The previously announced corporation tax cut from 19% to 17% in April 2020 will now NOT happen.
- Business rates are “suspended” for properties with a RV of under £51000.
- 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.
- VAT on digital publications, including newspapers, books and journals, is scrapped from December 2020.
- 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.
- 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.