Budget 2020 roundup for businesses
The new chancellor delivered his spending plans today, so we’ve prepared this quick Budget 2020 roundup for your business.
The day kicked off with a Bank of England announcement that UK interest rates were to be slashed from 0.75% to 0.25%. This brought them back down to the lowest level in history. The move was designed to give lenders more power to help businesses cope with the growing coronavirus outbreak.
By 12.30pm, we were also hoping to see the Chancellor announce a raft of measures to help businesses. So, in what was widely billed as the ‘Coronavirus Budget’, what plans were revealed that will have an impact on your business and personal finances?
These are some of the key points in our Budget 2020 roundup.
Temporary measures in response to Coronavirus
The chancellor opened his budget with a three-part plan in response to the impact of coronavirus.
- Health. The NHS was guaranteed any extra resources it will need – whether the bill runs to millions or billions of pounds
- Workers. When people are told to self-isolate because of coronavirus, they will qualify for statutory sick pay from day 1. The self-employed will get quicker, easier access to benefits from day 1. The minimum income floor for Universal Credit will be temporarily suspended. Local authorities will share a £500m hardship fund.
- Businesses. SMEs with under 250 employees will have statutory sick pay up to 14 days refunded by government. A coronavirus business interruption loan scheme will see this lending (of up to £1.2m) 80% guaranteed by government.
In addition, the chancellor announced:
- A 100% business rates discount for retail, leisure and hospitality firms with a rateable value under £51k.
- A £3k grant for any business eligible for small business rates relief.
- An increase in the National Insurance threshold from £8,632 to £9,500 – saving the typical employee £104 annually
Saying that he wanted to ‘unleash’ the power of business, the chancellor outlined measures to:
- Extend start-up loans by £130m.
- Increase lending to support exports by £5bn
- Increase the Employment Allowance by a third to £4,000 – essentially a tax cut for small businesses
- Extend R&D investment to £22bn per year
- Reduce the lifetime limit of entrepreneur’s relief from £10m to £1m
- A one-year break from NI contributions for employers of armed forces veterans
Other announcements with relevance to business included a new plastic packaging tax, £500m to support the rollout of a fast charging network for electric vehicles and a £27bn strategic investment in roads and railways. If you’re in the housing sector, you’ll be glad to know about a £1bn+ investment for nearly 70,000 new homes in high demand areas.
Oh, and good news for pensions: the tapered annual allowance will be raised to £90,000.
But what does our Budget 2020 roundup mean for your business? For more information view our full analysis of the 2020 budget here. Also be sure to sign up for THP updates. (You can do this on our blog home page).
About Mark Boulter
Mark Boulter is responsible for the efficient running of the firm’s infrastructure, and ensuring that THP delivers the best client service. Promoting the vision and culture across all branches, people are the key: “I like people who have a fresh approach and I’m happy for them to run with their ideas,” he says.
Communication across departments is crucial and Mark pioneers this. He ensure that people and departments not only talk to each other, but that they share ideas– whether they’re about marketing, finance, sales, strategy or any other topic that can result in us offering a better service. “I think helping to develop the next generation of THP people is essential to our success,” Mark adds. “We’ve a lot of talented people and our way of doing things increasingly attracts ambitious newcomers who are looking for a fresh approach. That’s good for us and even better news for our clients.”