Thread by @faisalislam

Budget...
Chancellor Sunak: “What was originally thought to be a temporary disruption to our way of life has fundamentally altered it” - temporary disruption is a quote from the last Budget

Sunak: “It’s going to take this country – and the whole world – a long time to recover from this extraordinary economic situation. But we will recover.”

Chancellor “todays forecasts show our response to Coronavirus is working”....

OBR is predicting a swifter and more sustained recovery - returns to pre pandemic level middle of next year, Sox months earlier than expected...

Chancellor:
In 5 years time, OBR predicts economy will still be 3% lower than prepandemic level...
OBR UK growth forecasts:

2021: 4%,
2022: 7.3%.
2023: 1.7%,
2024: 1.6%
2025: 1.7%

Furlough extended
Self employment grants extended, but more targeted on those who have made more than 30% less turnover...

Those who have filled new tax returns filed by midnight last night for 19/20 - about 600k people - will now be eligible...

Universal Credit £20 uplift extended for 6 months.
One off £500 payment for Working Tax Credit recipients/..
Confirmation of national living wage of £8.91

Business Rates holiday extended till June, and then a two thirds discount for the rest of the year - £6bn tax cut...

5% VAT for hospitality extended for 6 months till end September and then discounted to 12.5%, then 20% in April 2022

*** Stamp Duty 500k exemption extended until end June.. then phased down to 250k till end September then 125k normal back from October

Total Covid package this year and next £352bn including £65bn this year...

Borrowing this year is £234bn - well over expectations thanks to extra support, continues to be over 10%... £355bn last year - a little lower than expected...

Big build up to the tax rises... after outlining principles though not fiscal rules...

Tax rise number 1 is freezing the income tax thresholds, basically...

IHT, pensions allowances and other thresholds, VAT

It’s Fiscal Drag-tastic

Tax rise 2: for Corporation tax all the way up to 25p in 2023,

Big Bang - still lower than rest of G7

Very interesting “Super Deduction” policy for investing companies to claim back 130% of the costs of investments - says its worth £25bn over two years “biggest business tax cut in modern British history”..

That sounds same magnitude the C-tax rise.... we await the spreadsheet...

UPdated BoE remit includes transition to net zero

Freeports announcements incoming!

Simpler planning, tax breaks for Freeports...

8 Freeport locations in England:

East Midlands Airport. Felixstowe and Harwich. Humber. Liverpool City Region. Plymouth. Solent. Thames. And Teesside.

*** OBR

Corporation tax rise to 25p raises £16-17 billion a year from 2023. Very significant tax rise.

Income tax threshold fiscal drag - rise of £8bn in 24/25

***OBR:

This year £34bn spending giveaway, £24bn tax giveaway. £59bn in total - which leaves borrowing much higher than expected this year.

This is then partially clawed back at the end of Parliament with £25bn a year tax rise for corporations and from fiscal drag on income tax

Super-deduction does rather live up to its name, in size terms - £12bn tax cut to encourage investment in each of two years right now before it ends...

Unemployment peak now forecast at just over 6%, as a result of furlough extension and vaccine progress - thats a lot of extra unemployed, but lower than previous expectations...

First time Corporation tax has risen since Dennis Healy’s 1974 Budget

Much more on our live page: bbc.co.uk/news/live/uk-p…