Budget 2020 – Key Points at a Glance

With an unscheduled emergency cut to interest rates by the Bank of England, it made for an interesting start to Budget day.

As many would expect, the Coronavirus played a fairly key role in Rishi Sunak’s first budget as Chancellor, with a promise to do ‘whatever it takes’ it support the economy during the crisis.

Below is a summary of some of the key points discussed:

ECONOMY

  • Growth of the economy was revised down from 1.4% to 1.1%
  • Inflation forecast of 1.4% this year, rising to 1.8% in 2021-2022
  • £14.6bn more to be borrowed this year than previously forecast
  • Additional borrowing of £96.6bn forecast by 2023-2024 to pay for spending commitments

BUSINESSES

  • A £3,000 cash grant for firms eligible for small business rates relief
  • Entrepreneur’s Relief retained but lifetime allowance cut by £9m down to £1m
  • Business rates in England abolished for firms in retail, leisure and hospitality sectors with rateable value below £51,000
  • Business rate discounts for pubs to rise from £1,000 to £5,000 this year only
  • Small firms able to access ‘business interruption’ loans of up to £1.2m as a result of Coronavirus impact
  • Government to refund sick pay payments for two weeks to firms with fewer than 250 employees

TAXATION, WAGES & PENSIONS

  • Tapered annual allowance threshold increased by £90,000 to £200,000
  • Threshold for NI contributions will rise to £9,500, an increase of £868
  • Duties on fuel, spirits, beer, cider and wine to be frozen
  • Stamp duty surcharge for foreign buyers of properties in England and Northern Ireland to be levied at 2% from April 2021

For a complete overview what was covered in this year’s budget, please download our full summary report here.

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