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.

Articles on this website are offered only for general information and educational purposes. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.

Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise and investors may not get back the amounts originally invested.

You are now departing from the regulatory site of Finura. Finura is not responsible for the accuracy of the information contained within the linked site.