Budget 2021: What measures can you expect to see in Rishi Sunak’s budget this week?
Written by Hit Music Radio News on 02/03/2021
What’s going to be in the budget? A lot of the big announcements have already been revealed, leaked, or guessed at. Here’s what to expect:
A mortgage guarantee scheme will help home buyers purchase properties worth up to £600,000 with a deposit of just 5% with the government underwriting the other 95%.
Rishi Sunak could also reportedly extend the stamp duty holiday announced last summer on homes worth up to £500,000, currently due to run until the end of March.
Plans to begin to increase corporation tax, currently at 19%, to 23% by the next general election, will reportedly be set out.
There are also reports that the chancellor will freeze income tax thresholds – a tactic which would not technically be a tax-raising measure but still drag employees into paying more as their salaries rise
A £5bn scheme will help firms such as shops, pubs, clubs, gyms and hair salons hardest hit by the pandemic restrictions with grants of up to £18,000.
There have also been heavy hints about the extension of the furlough scheme, currently due to run until the end of April and calls for a continuation of business rates relief for companies forced to close.
A £520m scheme will help businesses boost their software and training.
There are reports that the £20-a-week temporary increase in universal credit will be extended for a further six months.
Will there be a new version of Eat Out To Help Out? Mr Sunak has declined to rule it out in the past. But it’s possible the government will want to be a bit more cautious this time.
Community groups will be given up to £250,000 to help taking over struggling pubs in their area, part of a £150m could also include sports clubs, theatres and music venues.
More than £400m will be allocated to help museums, theatres and galleries reopen in England and there will be a £300m package for sports, much of it targeted at cricket.
There will be a further £1.65bn for the UK’s vaccine roll-out.
Back in November the chancellor said the government was on course to spend £280bn on the coronavirus crisis in 2020/21 and £55bn in 2021/22. The figures are likely to be updated in the wake of the latest measures.
Back in the autumn, the independent Office for Budget Responsibility (OBR) said borrowing for 2020/21 would hit £394bn. The Institute for Fiscal Studies (IFS) now thinks this will come in at around £400bn.
The OBR will also forecast how quickly the economy could bounce back after suffering its deepest annual decline for three centuries last year when GDP shrank by 9.9%.
In November, it pencilled in growth of 5.5% for 2021.
The Bank of England thinks the roll-out of vaccines will mean a rapid recovery later this year but that, held back by the current lockdown, the economy will expand by 5% overall in 2020.
Watch and follow the budget live tomorrow with special coverage and analysis from 12.30pm. A special edition of the Sky News Daily podcast will be available to listen to from 7pm.
© Sky News 2020