Formal Jobs and businesses are the key pillars of any economy. Recently, businesses have been experiencing a decrease in revenue and increased spending due to the pandemic. In any budget reveal, companies, entrepreneurs, and all stakeholders always look forward to understanding the government plans to drive jobs, growth, and investment.
It is the government’s responsibility to develop initiatives to build diverse and inclusive measures on how to accelerate recovery and strengthen the economy. The March 2021 budget has set out the government plan to support jobs and businesses to achieve long-term recovery as the UK emerges from lockdown.
During his speech, Chancellor Richie Sunak came up with major ways of boosting businesses and protecting jobs. Below is a summary of the main points at-a-glance:
Jobs and Livelihood Support
Employees who can’t work due to the pandemic have a reason to smile as the furlough scheme, which was to stop at the end of April, has been extended to September. The plan is a compensation strategy for employees who cannot work in the pandemic as they will receive 80 per cent of their salary for the hours they have not worked. In addition, since the employers will contribute 10 per cent for the work not done by the employees, the government has set plans to support the employers.
Reinforcing the Public Finances
There has been a 10 per cent decrease in public finances, which has led to a significant economic downturn. In addition, more than 800,000 people have lost their jobs following the pandemic leading to an upsurge in the unemployment rate. The government has developed ways of strengthening the public finances by giving people and businesses the assurance they require for the future without increasing the rates of income tax, national insurance, or VAT. Companies making annual sales revenue of less than £50,000 will not suffer tax increment, and small, medium Enterprises will receive support through the growth plan strategy.
Investment Recovery and Growth
The government is committed to adapt mechanisms that will revive investment opportunities across all sectors. An investment-led recovery strategy aims to revive, redeem and expand businesses, to enhance access to skills, capital, and innovation. There will be increased opportunities for better wages, improved infrastructure, skills, and ideas, leading to a growth equilibrium across the country. Companies developing or sourcing new equipment will have a deduction in tax bill by £25 which will lead to a reduction in taxable profit by more than 120 per cent of the cost.
In 2020, the UK government announced its plan to assist people to secure jobs and restore their businesses on their feet after the pandemic. Since then, the government announced additional incentives which will play a vital role in the economic recovery and protection of the UK’s long-term prosperity.
Unfortunately, most businesses that lacked a digital model suffered more during the pandemic. To ensure every business has been brought on board during the transition period, the government is funding programs to assist people in gaining digital skills to develop the experience and qualifications necessary for enhancing work and progression.
Also, the digital strategy will help SMEs and huge organisations develop the digital talent required for business growth and future sustenance. The government has embraced external partners who will help create a diverse, inclusive digital talent avenue that will speed up recovery, reinforce the economy and enhance UK tech invention for the coming years.
There are Numerous Government Incentives at your Disposal
The government has availed adequate incentives to employees, employers, and companies to enhance sustainability and promote a swift and strong recovery.
The property market has also received quite a number of incentives to ensure it remains stable despite the adverse effects of the pandemic. There will be a stamp duty holiday extension from the previous deadline of 31st March, 2021 to 30th June, 2021. There are mortgage guarantee systems put in place by the government to ensure home buyers who can raise a 5 per cent mortgage deposit get a 95 per cent mortgage funding. This is a 15 per cent reduction in the mortgage deposit, from the usual 20 per cent.
Become part of this important paradigm shift and facilitate recovery as the UK emerge from the world crisis.