The Government made some key announcements in the Budget 2020 that affects businesses. Please find below a summary of the Budget and how it may affect you:
- Abolition of business rates in England for retail, leisure or hospitality businesses with a rateable value below £51,000 over the next financial year. This equates to a tax of more than £1 billon, saving each business up to £25,000.
- Cash grants of £3,000 for around 700,000 small businesses that are currently eligible for the Small Business Rate Relief (SBRR) scheme (those with rateable values below £15,000).
- The introduction of a temporary Coronavirus Business Interruption Loan Scheme to cover the cost of salaries and bills, which will see banks offering loans of up to £1.2 million to support small and medium-sized businesses.
- Refunds from sick pay paid out to employees for up to 14 days for businesses with fewer than 250 staff during the COVID-19 outbreak.
- £500 million towards the rollout of new rapid charging hubs for electric cars, ensuring that drivers are never more than 30 miles away from being able to charge their vehicle.
- Business rate discounts for pubs set to rise from £1,000 to £5,000 this year.
- £130 million of new funding to extend the British Business Bank’s Start-Up Loans programme to the end of 2021-22, supporting up to 10,000 further entrepreneurs across the UK to access finance to start a business.
- An additional £10 million for Growth Hubs across England to ensure that all businesses have access to high quality support and advice in their region.
- Further support for exporters by extending and increasing the lending capacity of UK Export Finance (UKEF). This makes permanent the additional £2 billion provided to UKEF at the last Budget, as well as providing a new £2 billion lending facility for projects supporting clean growth and an additional £1 billion to support overseas buyers of UK defence and security goods and services.
- A reform of Entrepreneurs’ tax relief, reducing the lifetime limit from £10 million to £1 million.
- Investment of £13 million to expand the British Library’s network of Business and Intellectual Property Centres to 21 cities and 18 surrounding local library networks, providing entrepreneurs with business support, free access to market intelligence, IP workshops and one-to-one coaching.
For more information visit www.gov.uk/government/topical-events/budget-2020