Budget 2021 – Our Reaction

March 3rd, 2021

Today’s Budget announcement was substantial…

Not in terms of immediate tax changes, but more from the enormity of the economic and fiscal recovery that the UK now faces as the pandemic’s measurable effects are revealed.

Chancellor Rishi Sunak set out his plan to address the acute damage that the virus has inflicted. The Budget speech was a stark wake-up call as he addressed how some 700,000 people have lost their jobs despite the financial support awarded to businesses, how the economy has shrunk by 10% and how borrowing is the highest its been outside of wartime.

A full recovery is a long time off, and by his own admission, the Chancellor explained the “amount we’ve borrowed is comparable only with the amount we borrowed during the two world wars. It is going to be the work of many Governments, over many decades, to pay it back”.

A daunting prospect indeed, but for now, the Chancellor’s plan is based on a three-pronged approach:

  1. Support the British people and businesses through the crisis
  2. Fix public finances
  3. Rebuild the economy

Measures to help achieve these goals include…

Further Coronavirus Financial Assistance:

The key tax headlines are…

Corporate and Business Tax:

Personal Tax:

The Chancellor’s view is that “without corrective action, borrowing would continue at very high levels, leaving underlying debt rising indefinitely. Just as it would be irresponsible to withdraw support too soon, it would also be irresponsible to allow our future borrowing and debt to rise unchecked. When crises come, we need to be able to act. And we need the fiscal freedom to act. A freedom that you only have if you start with public finances in a good and strong place”.

And, so it begins….

To understand the measures in more detail, please contact your Champion advisor or download our comprehensive Budget round-up here

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