Budget 2021 key points: What was announced in the Chancellor's speech?

by Aaron Strutt

Mar 03 2021

Chancellor Rishi Sunak has delivered the 2021 UK Budget announcing the extension of several coronavirus support schemes and outlined plans for the country’s post-pandemic recovery. 

During his speech he confirmed the stamp duty holiday would continue until the end of June with the nil rate band set at £250,000. 

He also said mortgage lenders would start providing 5% deposit mortgages again through a government guarantee scheme for properties valued up to £600,000. It’s not restricted to first-time buyers or new-build homes, like the Help to Buy scheme.
 
Key points: 

• Rishi Sunak says the recovery will be 'swifter and more sustained' than thought and unemployment may peak at 6.5% in 2022, lower than the 11.9% predicted.  

• Corporation tax will increase to 25% from 2023 but income tax thresholds will freeze. 

• A further 600,000 self-employed people will be eligible for help as access to grants is widened. The amount borrowed is comparable only with that during the two world wars, he says; It will be the work of many governments, over many decades, to pay back. 

• UK to borrow a peacetime record of £355bn this year and borrowing will total £234bn in 2021-22.  

• The furlough scheme - which pays 80% of employees' wages - will be extended until the end of September. Employers will be asked to contribute 10% in July and 20% in August and September. 

• A further 600,000 self-employed people will be eligible for help as access to grants is widened.  

• The Universal Credit top-up of £20-per-week will continue for a further six months.  

• The 5% reduced rate of VAT for tourism and hospitality will be extended for six months to the end of September.  

• The 100% business rates holiday in England will continue from April until June.  

• £19m is announced for domestic violence programmes.  

• There is £400m to help arts venues in England re-open; £300m for professional sport; £25m for grassroots football. 

• Treasury will establish a new economic campus in Darlington.