1st Budget of a new government, 1st Budget of a new decade, 1st Budget outside the EU
On the same day that Coronavirus was declared a pandemic by the WHO, it also overshadowed the 2020 Budget in which the new chancellor replaced austerity with a new willingness to borrow and increase public spending.
He has put in place a £12 billion fiscal stimulus to combat Coronavirus ;
- Statutory Sick Pay is to be paid from day 1 without the need of a sick note, and may be paid to people who have been advised to stay off work. Up to 14 days SSP will be reimbursed to the employer.
- Business rates will be abolished all together for a year for businesses with a rateable value less than £51000.
- Small businesses who already qualify for Small Business Rate Relief will be granted with £3000 to help fund other bills e.g rent.
It remains to be seen how quickly businesses can access the cash injection and be repaid having claimed compensation for Sick Pay.
Leveling up and getting Britain building;
- £640 Billion will be provided for roads, railways, communications, schools, hospitals and power networks across the UK by 2025.
- 4G Coverage will reach 95% of the country within the next five years.
- Structural and building relief is to be increased from 2% to 10% per annum.
Supporting people and families;
- The National Living Wage is increasing to £8.72 from April 2020 and this is expected to reach £10.50 by 2024.
- National Insurance thresholds are to increase giving people a saving on their wage. The Class 4 NI threshold is increasing to £9500 from April 2020.
- Fuel duty is to be remained frozen, and all alcohol duties are to be frozen and zero rate VAT is to be applied to e-publications.
- The tax free personal allowance is staying the same at £12500 as is the dividend tax free allowance of £2000.
- The income tax, dividend tax and VAT rates are all unchanged.
- Employers National Insurance Allowance is to increase from £3000 to £4000.
- 19% Corporation Tax is to stay the same.
Growing a Greener Economy;
- A Green Gas Levy is to be introduced to help fund the use of green fuels. The tax on electricity will be frozen but the tax on gas will increase.
- The government is going to invest in electric vehicle charging infrastructure so we are never more than 30 miles away from a rapid charging station.
- The entitlement to use red diesel will be removed except for agriculture, fish farming, rail and non commercial heating.
We were disappointed at the lack of discussion around Making Tax Digital - the biggest reform in tax since the introduction of self assessment. Perhaps COVID-19 has temporarily taken over this too. The government is going to publish an evaluation of the introduction of Making Tax Digital for VAT along with related research in due course, I suspect they won’t publish much negativity however the pace at which they decide to move forward with MTD for self assessment will reflect how successful they believe it really is.
Some familiar words cannot be wrong.
Roses are red Violets are blue You write the next line For your lover true.
Others are often misquoted.
The Bible (1 Timothy 6 :10) does indeed say ‘money is the root of all evil’ but those words are preceded by ‘For the love of….’ Now the verse is very different.
Money can be used for good or evil. Every spend is to some extent a moral decision.
If you want to see into a man’s soul, look at his internet search history and at his bank statements.
Who decides which anniversaries are celebrated and which pass without comment?
It is exactly 100 years since Charles Ponzi set up a fraudulent investment ‘scheme’ (scam) the type of which borne his name ever since.
Promising 50% interest in just 90 days was attractive to some of the residents of Boston, Massachusetts. In January 1920 Charles Ponzi was on his way to engraving his name on the financial services industry.
Subscribe to our weekly email to learn how events unfolded in real time through spring and summer in downtown Boston, 1920.