Chancellor Rishi Sunak has delivered his second Budget, in which he unveiled a three-part plan to support businesses through the pandemic, “fix” the public finances and lay foundations for the future economy.
Mr Sunak again pledged to continue doing “whatever it takes” to help business through “this moment of crisis” as he announced a raft of coronavirus business support measures (see back page for details). The Chancellor also announced a number of policies relating to taxation as part of his plans “to begin the work of fixing our public finances.”
These included a freeze in the tax-free personal allowance and higher rate Income Tax threshold from April 2021 until 2026. In addition, the Chancellor announced the main rate of Corporation Tax will rise to 25% in April 2023, although businesses with profits of £50,000 or less will continue being taxed at 19%.
During his speech, Mr Sunak also revealed the latest economic forecasts produced by the Office for Budget Responsibility which predict “a swifter and more sustained recovery” than previously expected. According to the updated figures, the UK economy is now forecast to grow by 4% this year and by 7.3% in 2022.
For the latest information on COVID-19 and the measures the government are taking visit the government website.