Budget 2021: the holiday is extended as the corporation tax increases

Looking to further away protect the hospitality and tourism sectortwist it confirmed that the reduced VAT rate of 5% will be extendedd until the end of Septemberdrink, monitoring by a provisional rate of 12.5 per centt for another six months.

the up to £500,000 “zero rate band” forr stamp duty will end at the end of June, rather than the end this month.

Mr Sunak say it municipalities the Office of Budget Responsibility been plan a “a faster and more sustained recovery thann expected” and TThe economy will come backn / A Its pre-Covid level by the middle of next year.

However, he added that the economy will be three percent smaller in five years than he would have been.

Cabinet briefing before hIn his budget speech, Mr. Sunak said: “As we face difficult times, we will rise to this challenge and we can be optioptimistic about the recovery.

Your reaction

Tony Medcalf, tax partner at MHA Moore and Smalley, on business confidence: “Today’s budget will provide a much-needed boost to the UK economy through a range of measures aimed at getting businesses across all sectors back on their feet quickly and promoting economic recovery through business growth.

“The extension of the furlough scheme will provide a safety net for employers over the coming months, particularly those in the hospitality industry who will not be able to fully trade until May 17 at the earliest. £5billion restart and continued VAT cuts, will help retail, hospitality and personal care businesses recover as the lockdown is eased.”

Linda Kirk, Lancashire Director and Regional Conveyance Specialist Adkirk Law, during the stamp duty holiday: “We are seeing high levels of sales with the benefits of the stamp duty suspension and now our customers can see through the process that has been launched with the clarity that the duty will be waived.

“Many people could have ended up with a hefty tax bill that they hadn’t anticipated if the deadline hadn’t been extended due to delays beyond their control. With the current pandemic, we have all been operating in a restricted way and under difficult deadlines.

“We still have a pent-up pipeline of sales and deals, but this will give everyone time to plan ahead and with more security.”

Jane Parry, Managing Partner of PM+M, on UK Debt: “The biggest challenge for the Chancellor over the coming weeks and months is to manage expectations that the Covid debt must be repaid but without stifling confidence, which will not be an easy task. Balancing being supportive but looking tough on debt is a delicate balance, and today’s budget didn’t come with any real surprises.

“Like most people, I am waiting to see the details of the tax changes that will be specified in the tax consultations on March 23. As painful as it is, the only way to reduce the debt will be through tax hikes. There was no mention of changes to capital gains tax rates, which is good news for business owners, but I think it will happen at some point. by when and by how much. Similarly, I think we can expect a future tightening of inheritance tax.”

Matthew Johnson, associate partner at WNJ, on reopening the country: “The Chancellor’s new support measures for businesses and to protect jobs are welcome, in particular grants to help retail and hospitality businesses reopen after lockdown. It is essential that they receive as much help as possible in all the uncertainty they are facing.Getting these businesses reopened will go a long way to building confidence and putting them on the road to recovery.

“Additional support for the self-employed is also welcome news, with more people now eligible. the pandemic.”

Rob Wardle, tax manager at Azets in the NW, on the furlough extension: “The furlough extension reflects the need to expand support for businesses that employ and follows the ‘success’ of the program to date. Unemployment is now expected to peak at 6.5%, not the 11.9% expected. It s This is a reduction in terms of people of 1.3 million workers, which justifies the extension aimed at keeping people in employment.

“The extension protects the employee while requiring a gradual increase in employer contributions in July, August and September until the closure on September 30. However, once companies are required to contribute, this will increase- Will there be unemployment in the area as the cost to employers rises? How many employees are kept on the books will depend on how quickly the North West economy recovers post-lockdown.”

David Harland, CEO of Eden Project International, on the lack of public funds: “It is no secret that we hoped the government would fund Eden Project North in this budget, but we do not see this as a major setback.

“We have been encouraged by the Chancellor’s leveling and green recovery commitments and believe that Eden Project North fits perfectly into these programs. We are more confident than ever that our case for investment are incredibly strong and we know many in government feel We will continue to advocate our case and remain hopeful for good news in a future announcement Our conversations with private and philanthropic investors are also ongoing.

Peter Emery, CEO of Electricity North West, on supporting green initiatives: “We welcome the green initiatives in this budget and support the new savings bonds that will help everyone play their part in funding key projects that will lead to a green recovery.

“However, to really pave the way for this recovery, we urge the government to build on the 10-point plan announced at the end of last year with even more targeted incentives for businesses to invest in green growth. If we are to meet the region’s ambitious net zero carbon targets, we will need to invest in the energy efficiency of our building stock sooner rather than later.

“A new UK infrastructure bank will support big projects, but in line with the 10-point plan published at the end of last year, the government should also push ahead with more projects like the Green Homes grant which will transform our use of energy, will launch a green economy and stimulate investment in skills.”

David Taylor, President of LEP, on increasing corporate tax: “The headline announcement – ​​a jaw-dropping rise in UK corporation tax from 19% to 25% – may have been intended to reassure the public and the markets that the government is serious. as for the consolidation of public finances in the wake of COVID-19 Unfortunately, this will also alarm many entrepreneurs.

“While UK corporate tax rates will remain the lowest in the G7, the rise won’t happen for two years and cuts are planned to protect small businesses, the rise still sends a powerful message internationally about the UK being open for business and welcoming to This is the biggest rise in UK corporation tax since Dennis Healey was chancellor in 1969 and it could deter foreign businesses to invest in the UK and in Lancashire.