THIS is an edited highlights list of measures announced in the budget that are most relevant to UK manufacturers.
An extension of the Coronavirus Job Retention Scheme to September 2021 across the UK. Employers will be expected to pay 10 per cent towards the hours their staff do not work in July, increasing to 20 per cent in August and September, as the economy reopens.
A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.
Extension of the apprenticeship hiring incentive in England to September 2021, and an increase of payment to £3,000.
£7 million for a new ‘flexi-job’ apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.
Additional £126 million for 40,000 more traineeships in England, funding high-quality work placements and training for 16–24-year-olds in 2021/22 academic year.
Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the government.
To further support the cashflow of businesses, the government is extending the loss carry-back rules worth up to £760,000 per company.
The rate of corporation tax will increase to 25 per cent, which will remain the lowest rate in the G7. In order to support the recovery, the increase will not take effect until 2023. Businesses with profits of £50,000 or less, around 70 per cent of actively trading companies, will continue to be taxed at 19 per cent, and a taper above £50,000 will be introduced, so that only businesses with profits greater than £250,000 will be taxed at the full 25 per cent rate.
Beginning April 2021, the new super-deduction capital allowance will cut companies’ tax bill by 25p for every pound they invest in new equipment.
The £375 million UK-wide ‘Future Fund: Breakthrough’ will invest in highly innovative companies, such as those working in life sciences, quantum computing, or clean tech, that are aiming to raise at least £20 million of funding.
All Budget 2021 documents can be found here.