Budget 2021

You can see a full summary of  the Budget HEREas well as a transcript of the Chancellor’s speech HERE.

The key points for tourism and hospitality include:

Coronavirus Support

VAT

  • 5% rate extended for another six months, followed by a 12.5% rate for a further six months.

Business Rates

  • 100% businesses rates holiday until June, followed by a two-thirds discount for the rest of the year.
  • The discount is being capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties.
  • The Government will legislate to ensure that the business rates relief repayments that have been made by certain businesses are deductible for corporation tax and income tax purposes.

Furlough

  • To be extended until the end of September, at the 80% rate until July
  • From July, the Government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September.

Restart Grants

  • Non-essential retail businesses will receive grants of up to £6,000 per premises.
  • Hospitality and leisure businesses will get grants of up to £18,000.

Additional Restrictions Grant (ARG)

  • An additional £425million of discretionary business grant funding, on top of the £1.6 billion already allocated.

Self-Employment Income Support Scheme

  • People whose turnover has fallen by 30% or more will continue to receive the full 80% grant.
  • People whose turnover has fallen by less than 30% will receive a smaller grant.
  • The 4th grant will cover February to April, worth 80% of average trading profits up to £7,500.
  • A 5th grant will be available from July.

Recovery Loan Scheme

  • From 6 April 2021 the Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million.
  • The scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.

Culture Recovery Fund

  • The Government will provide a further £300 million to extend the Culture Recovery Fund.

National Museums and Cultural Bodies

  • The Government will provide £90 million for continued support for government-sponsored National Museums and cultural bodies in England.

Extend Zoo Animals Fund

  • The Government will extend the Zoo Animals Fund for a further three months until 30 June 2021.

Other Policies

Extended Loss Carry Back

  • The trading loss carry-back rule will be temporarily extended from the existing one year to three years. This will be available for both incorporated and unincorporated businesses.

Super Investment Tax Deduction

  • To encourage investment, from 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will benefit from a 130% first-year capital allowance. This upfront super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest.

Corporation Tax Rate

  • This will increase to 25% on April 2023.
  • A Small Profits Rate of 19% will apply to businesses with a profit of over £50,000.
  • There will be a tapered rate between profits of £50,000 and £250,000.

Help to Grow: Management and Digital

  • The Government will offer a new UK-wide management programme to upskill 30,000 SMEs in the UK over three years. The programme will be over 12 weeks, and 90% subsidised by government.

Apprenticeships

  • Employers who provide trainees with work experience will continue to be funded at a rate of £1,000 per trainee.
  • Employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire.

Contactless Payment

  • From today, the maximum amount that can be paid through contactless payment will be raised from £45 to £100.

Alcohol and Fuel Duty

  • No increases this year

For further information

Contact Reception on
01539 822222 or info@cumbriatourism.org