The much-awaited UK Budget was finally announced yesterday (3 March).
As a part of the Budget, Chancellor Rishi Sunak confirmed the extension of business rates holiday. Notably, there would be discount offers for the remaining part of the year.
The Budget, first to be presented to the House of Commons since the pandemic, distinctly stated that 100 per cent business rates holiday would be extended till June 2021 for hard-hit retailers and leisure firms operating on high streets, retail parks and shopping malls.
Rishi also said that the furlough scheme too will be extended till the end of September 2021, and employees will continue to get 80 per cent of their salary for non-working hours.
While non-essential retailers, including apparels and fashion accessories, would receive grants up to £6,000 per premises under ‘new restart grant’ scheme, other high-street businesses would receive grants up to £18,000 per premises.
That would be £5 billion of new grants, said Rishi, while adding that the Government has already provided £20 billion.
Besides, there will be a new Recovery Loan Scheme that will help businesses of any size to apply for loans from £25,000 to £10 million until the year-end. Importantly, Government will provide 80 per cent guarantee.
Another notable point was that there would be huge deduction for businesses while investing, which will bring down their tax bill by 130 per cent of the cost.
The rate of corporation tax in the UK too will be increased by 25 per cent (by 2023), but that will affect only the largest and most profitable businesses.
The minimum wage too has been increased to £8.91 an hour from April this year.
The much-talked about ‘Help to Grow’ scheme too will be rolled out to provide MBA-modelled management training to around 130,000 British small and medium enterprises (SMEs).