Furlough extension key plank of Budget

By Barrie Hudson - 3 March 2021

CommunityPoliticsBusiness

The pandemic furlough is to be extended until the end of September.

  • The furlough extension is among a raft of measures announced by Chancellor Rishi Sunak

    The furlough extension is among a raft of measures announced by Chancellor Rishi Sunak

The announcement was among the first made by Chancellor Rishi Sunak as he presented his second Budget in the House of Commons.
He said the Government would initially continue to pay 80 percent of furloughed workers' salaries.
However, employers will be asked to contribute 10 percent in July and 20 percent in the following two months.
The Chancellor said: “Today’s Budget provides certainty in the months ahead for the people of the South West – with the cut in VAT to 5% for the hospitality, accommodation and tourism sectors, Self-Employment Income Support Scheme and furlough scheme all being extended through to September.
“This support is complemented by other measures in today’s Budget – and the more than £350billion we have invested since the start of the pandemic to protect millions of jobs and businesses.”
Other key decisions outlined by the Chancellor include there being no changes to income tax, VAT or national insurance, although the personal taxation threshold will be frozen at £12,570 beginning in the next financial year and that rate will remain until 2026.
A planned increase in fuel duty has been cancelled, as have planned increases in duty on alcohol.
There was good news for homebuyers, with the Stamp Duty holiday for properties costing up to £500,000 continuing to the end of June and applying to properties costing up to £250,000 until October. It will then apply, as normal, to properties costing up to half that.
The Universal Credit uplift of £20 per week is to be continued for a further six months.
There will be a new loan scheme for businesses hit by the pandemic, which will be able to apply for sums ranging from £25,000 to £10m.
The particularly hard-hit hospitality and leisure sector will benefit from a three-month business rates holiday followed by a reduced rate for the rest of the financial year.
The reduced five percent VAT rate will remain in place until the end of September before being increased to 12.5 percent for the next six months and then returning to the standard 20 percent.  
 
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