Today, Chancellor Rishi Sunak announced the budget with a focus on ‘preparing for a new economy post-COVID’.
We’ve rounded up the key points that we think are most relevant to you and your business.
Business rates
The Chancellor announced reforms to business rates and has incentivised green investments.
Sunak announced a new 12-month business rates discount for businesses in the hospitality, retail and leisure sectors. If your business is in one of these industries, you’ll be able to claim 50% of your bills (up to £110,000) on top of small business rate relief.
From 2023, every UK business will be able to make investments in their premises and not pay any further business rates.
Although the figure was not announced, there will be new investment relief to help small businesses adopt green technologies, such as solar panels.
The Chancellor claimed that he would make the business rates system 'fairer and timelier' promising more frequent evaluations every three years.
National Living Wage
The Chancellor announced a rise in the National Living Wage from £8.91 to £9.50 per hour, which will take effect on 1 April 2022. This represents a 6.6% increase in the minimum wage.
Universal Credit
Sunak confirmed that he will cut the Universal Credit taper by 8%.
This means that those claiming the benefit should take home more money each month.
Instead of losing 63% of every £1 earned above your work allowance, you’ll now be taxed 55% – a tax cut of around £2bn. The Chancellor announced that this cut would be brought in within a matter of weeks.
Rise in fuel duty cancelled
The planned rise in fuel duty that was outlined earlier this year has been cancelled. The average tank of fuel will now cost £15 less for a car, £30 less for a van and around £130 less for HGV’s when compared to pre-2010 plans.
You can read more about the budget here
