Furthermore, as the UK’s economics and finance ministry HM Treasury will establish representation in all the nations of the UK, building on its existing presence in Scotland with new positions based in Northern Ireland and Wales for the first time. This is why the government has already set up the £3.6 billion Towns Fund to support the regeneration of high streets, town centres and local economies. The government is also supporting our ports, which are major hubs for trade, innovation and commerce – it has launched a consultation on creating up to 10 new Freeports that will work for all of the UK. The government is delivering world-class public services for hard-working people across the UK. The Budget builds on the significant investment in public services made at Spending Round 2019, with action to make the UK a safer, healthier place to live.
Given these changes relate to short-term business visas, they do not impact on the overall level of net migration. The government is also signing and expanding new and existing Youth Mobility Schemes (YMS) to make sure the next generation of talent have a wide range of opportunities to live, work and travel abroad and experience other cultures. This investment will pave the way for new space clusters and infrastructure, make progress towards the government’s climate goals by supporting the earth observation industry and deliver new capabilities in low earth orbit satellite communications technology. The government is also building on the £2.5 billion ten-year National Quantum Strategy by publishing an ambitious set of quantum missions,[footnote 151] including a mission to have accessible, UK-based quantum computers capable of running 1 trillion operations by 2035. Other missions focus on quantum networks, medical applications, navigation, and sensors for infrastructure. Ensuring UK companies have access to capital and supporting the UK’s world-leading capital markets is critical for future growth.
9 Illustrative future gross financing requirement
The annual rate of Consumer Prices Index (CPI) inflation was 1.8% in 2019, down from 2.5% in 2018. Inflation fell through much of 2019, reaching 1.4% in the final quarter of the year, before increasing to 1.8% in January 2020. The ONS’s headline measure of inflation, the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was also 1.8% in January 2020.[footnote 8] The OBR forecasts CPI inflation to be 1.4% in 2020, gradually rising to 2.1% in 2022 and 2023, and settling at 2.0% by 2024. Increasing the UK’s use of clean energy is a vital part of reducing carbon emissions and putting the nation at the forefront of new innovative industries. The Budget announces a Carbon Capture and Storage (CCS) Infrastructure Fund to establish CCS in at least two UK sites, one by the mid-2020s, a second by 2030.
Low and stable inflation supports living standards and provides certainty for households and businesses, helping them make decisions about saving, investment and spending. Over the past decade, the government has taken action to restore the public finances to health, reducing the deficit by four fifths. This, and the historically low cost of borrowing, mean that the government can support the economy in the short term, while providing significantly more investment in public services and infrastructure to support growth in the long term. Stamp Duty Land Tax (SDLT) temporary relief – To stimulate market activity and support businesses and jobs in England and Northern Ireland that rely on the property market, the government raised the nil rate band of SDLT from £125,000 to £500,000 until 31 March 2021.
16 Helping businesses grow
A note setting out the key changes to the policy following the technical consultation is published alongside the Autumn Statement, ahead of it being legislated for in the Autumn Finance Bill 2023. To build resilience for future health emergencies and to capture and capitalise on the UK’s R&D strengths, the government is providing £520 million in funding from 2025‑26 to support transformational manufacturing investments in life sciences. It is also backing UK innovation by investing £10 million, with an additional £10 million from Scottish Enterprise, in a world class Manufacturing Centre of Excellence in Oligonucleotides. Tackling antimicrobial resistance will be essential for future health resilience, so to mark the 2028 centenary of the discovery of penicillin, the government is granting £5 million seed funding to help launch the Fleming Centre. A collaboration led by Imperial College London and Imperial College Healthcare NHS Trust, the Centre will support the next generation of world-changing health innovations.
- UK Export Finance SME Support – The government will offer additional support to SMEs to access global markets through UK Export Finance including reviewing the products available for SMEs and enhancing the SME-focused support that is offered.
- The government stands ready to provide further support as the situation develops, playing our full part in a well-coordinated global response.
- In the usual way, the OBR have incorporated Budget policy decisions (set out in Table 2.1) into their final post-measures forecast.
- Figure A.1 illustrates the regional and national range of some of the major COVID-19 support schemes for businesses and individuals.
- During 2024 the government will explore further improvements to the business visitor rules alongside the potential for further enhanced provisions linked to trade negotiations.
However, the power generated by these renewable sources is dependent on the weather, so the UK also needs reliable low carbon power from technologies such as nuclear, gas with carbon capture and storage (CCS), and hydrogen. The Budget sets out ambitious action on tree planting, ultra-low emission vehicles, heat decarbonisation and carbon capture and storage. The UK is a world leader in many of the scientific fields that are essential for responding to society’s greatest challenges. For example, 25 of the world’s top 100 medicines were discovered in the UK,[footnote 66] and the UK is the second largest expert contributor to the Intergovernmental Panel on Climate Change (IPCC).[footnote 67] The Budget is backing UK scientists and businesses to maintain and build on this international leadership. The government will maintain a sustainable and efficient business-friendly tax environment in which innovative and enterprising businesses can grow and thrive.
2 Providing UK-wide support throughout the pandemic
G20 Finance Ministers last week committed to monitoring the evolution of COVID-19 including its impact on markets and economic conditions, and highlighted their readiness to take further actions to aid in the response to the virus, support the economy and maintain the resilience of the financial system. Nominal wage growth (including bonuses) and regular nominal wage growth (excluding bonuses) were 2.9% and 3.2% respectively in the final quarter of 2019. The OBR forecasts average earnings Best Online Bookkeeping Services for Small Businesses of October 2023 to grow by 3.3% in 2020 and rise to 3.6% in 2021.[footnote 4] It then expects growth to fall back to 3.1% by 2024. Over the forecast, the OBR has revised down its forecast for cumulative GDP growth by 0.5 percentage points, largely reflecting downward revisions to potential productivity and net migration. The OBR expects GDP growth of 1.1% in 2020, revised down from 1.4% in its Spring Statement 2019 forecast, with weaker contributions from both consumption and business investment growth.
- Throughout the CSR the government will engage with all regions and nations of the UK to ensure that its policies level up and spread opportunity.
- The only sustainable way to drive economic growth and improve living standards in every corner of the country is to boost productivity.
- Simplifying Making Tax Digital for Income Tax Self Assessment – The government is announcing the outcome of the review into the impact of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) on small businesses.
- Together these measures will reduce delays and capitalise on the UK’s world-leading approach to decarbonising the economy.
These valuations are based on the revised Superannuation Contributions Adjusted for Past Experience (SCAPE) discount rate. Following a review of the SCAPE methodology, and the latest OBR forecast of expected long-term GDP growth, HM Treasury confirmed the new SCAPE discount rate of 1.7%+CPI p.a. On 30 March 2023.[footnote 46] The government has committed to providing funding for the increased cost of employer contributions from April 2024 for centrally funded employers.
Budget 2021 (HTML)
This is also necessary given the risks from high debt and will build fiscal resilience, allowing the government to provide support to households and the economy when it is needed most. While interest rates are currently forecast to remain low, there is a risk that they could rise sharply, which would have significant consequences for the affordability of debt. Economic growth was stronger at the end of last year than the OBR expected in their November forecast, with output ending the year https://adprun.net/cashing-old-checks-rules-regulations-and-etiquette/ 6.3% below its February 2020 level, around 1 percentage point higher than originally estimated. Following an expected 3.8% fall in GDP in the first quarter, the OBR expects growth to return from the second quarter of this year, with GDP reaching pre-COVID levels two quarters earlier and its unemployment forecast revised down compared to November. GDP is expected to increase by 3.9% in the second quarter, and is then forecast to rise by 3% and 3.3% in the third and fourth quarters.