Today, the Chancellor announced his 2021 budget. It's a budget made with recovery in mind; continuing to support people affected by the Pandemic while planning for a COVID restriction-free future. There's plenty of good news inside for Stoke-on-Trent residents, and also acknowledgement of the tough financial situation we'll be working through.
I look forward to working with the Treasury to secure continued commitments to Stoke-on-Trent within and outside the budget. You can read the full budget here: https://www.gov.uk/government/news/budget-2021-what-you-need-to-know
Here are some of the highlights:
Furlough Scheme:
For the around 300,000 people in the West Midlands currently relying on the Furlough scheme, it will be extended in its current form until the end of September. This means 80% of your present salary for hours not work will be paid by the Government.
Self-employed Support Scheme (SEISS):
On top of the £33bn spent supporting the self-employed thus far, the Chancellor has committed to a fourth grant to cover the Feb-Apr period. This will be worth 80% of the person's average trading profits. There will also be a fifth grant from May. 600,000 people who became self-employed in the last year can now claim these grants, as the tax return deadline has passed.
Mortgage Guarantee:
A new mortgage guarantee scheme will enable all UK homebuyers to secure a mortgage up to £600,000 with a 5% deposit.
Apprentices:
There will be a £126m investment in apprenticeships, giving businesses £3,000 for every new hire apprentice. This is to ensure people without higher education can get into secure well-paid jobs.
Restart grants for small business:
To help non-essential small businesses re-open in April (as planned under the COVID roadmap), the Treasury will be offering grants of up to £6,000, or £18,000 for hospitality and leisure businesses.
Local authorities will also be supported with £425million to offer their own discretionary business grants.
Culture recovery fund:
A total of £300m more will be provided to the Culture Recovery Fund, offering grants and loans to theatres, museums, festivals, and music venues. Additionally there's £2.8m to back the UK's application to host the 2030 world cup.
Recovery Loans Scheme:
To replace the Coronavirus bounce-back loans scheme, the Chancellor has announced the Recovery Loans scheme. Under this, businesses will be able to apply for loans ranging from £25,000 to £10 million, while lenders will get an 80% guarantee.
Stamp Duty:
The very popular Stamp Duty cut will be extended for another three months, allowing homebuyers to finalise their purchases.
Corporation tax:
By 2023, Corporation tax will increase to 25% for larger businesses, while small businesses will be maintained at 19%. This means we maintain the lowest Corporation tax in the G7.
Fuel Duty:
Fuel duty will be frozen for 2021-22. The average driver has saved £1,600 because of the Government's fuel duty freezes over the past decade.
Beer/Alcohol Duty
All alcohol duties will be frozen, acknowledging the difficult year for the sector.
Treasury:
The treasury and many of its civil servants will be moving to Darlington, Co. Durham. This is a part of the Government's commitment to levelling up, and I am working on a campaign to see another Government department relocated to Stoke-on-Trent.
