The Chancellor has delivered an ‘essential’ Budget that offers swift and decisive action to help businesses through the economic disruption caused by Coronavirus by way of a raft of measures to help small businesses covering Statutory Sick Pay in full, the Business Interruption Loan Scheme, and Business Rates cuts. This will be vital in supporting cashflow and liquidity in the business community.
This Budget is also reflective of a post-election Government mapping out its blueprint for Britain’s future. The Government has confirmed that digital services tax will go ahead and, whilst the expected reduction of the limit for Entrepreneur’s relief from £10m to £1m will have disappointed some, the pensions relief changes will please others. The Chancellor also set out plans to unleash the power of business particularly by investing substantially in ideas and R&D. Added to the announcements on housing and infrastructure it represented an eye-watering spending plan with little detail on how it is to be funded. With few significant tax raising measures announced, it appears the Government has opted to fund planned expenditure with borrowing rather than increased tax. This will kick some of the tougher tax decisions into the Autumn. Business will hope that this signals a willingness to engage in consultation and focused reform.
Download our quick on a page guide to the Budget, covering the big topics for businesses, employers and individuals.