Rishi Sunak announced his Budget to the House of Commons this afternoon – revealing the government’s financial blueprint for recovery after one of the most tumultuous economic years on record.
Whilst the image of the Chancellor holding aloft the iconic red briefcase always attracts interest, the build-up to ‘Budget 2021’ had been accompanied by considerable buzz.
Many businesses have only been permitted to trade for a few months since COVID-19 first forced Britain into lockdown last March, whereas some sectors have remained closed entirely.
With an ‘irreversible’ roadmap to reopen the economy now published, millions have been speculating as to whether financial support will remain available – and how the country will get back on its feet.
Here’s a breakdown of everything Sunak had to say in his address to MPs on March 3.
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What was in the 2021 Budget?
Sunak’s debut Budget in March 2020 was an anomaly; including a series of policies designed to manage the economic impact of a deadly virus which was, back then, only in its infancy.
But the pandemic quickly spiralled out of control in the aftermath of that address, and the Chancellor has been forced to make regular interventions ever since to keep the economy afloat.
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On Wednesday, Sunak announced how the country planned to recover from its £355 billion debt incurred during the past 365 days, as well the financial support that will be accessible.
Sunak unveiled a three-part plan to “protect the jobs and livelihoods of the British people”, predicting a “swifter and more sustained recovery” to pre-COVID levels by the middle of 2022.
The furlough scheme will be extended
To protect the jobs and livelihoods of the British people through the remaining phase of this crisis, the furlough scheme will be extended until the end of September. #Budget2021pic.twitter.com/q48eo1ppqI
The Coronavirus Job Retention Scheme has resulted in millions of employees being furloughed since March – with the government covering 80% of wages for hours staff cannot work.
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Around 11 million jobs have been protected as a result.
The Chancellor confirmed on Wednesday that this furlough scheme is set to be extended until September 2021.
However, as the economy reopens again, employers will be expected to make contributions.
From July, companies will need to pay 10% towards furlough payments. This will increase to 20% in August and September.
The National Living Wage will be increased to £8.91 from April.
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Self-employed support will continue
Support for the self-employed will continue with a 4th grant covering February to April, and a 5th grant from May.
As the tax return deadline has now passed, 600,000 more people, many of whom became self-employed last year, can now claim the 4th and 5th grants. #Budget2021pic.twitter.com/1nJO2ZmPqn
The Chancellor also confirmed further support for the self-employed in the weeks ahead.
This includes a fourth grant covering February to April, and a fifth grant from May.
Sunak added: “As the tax return deadline has now passed, 600,000 more people, many of whom became self-employed last year, can now claim the 4th and 5th grants.”
Grants are being made available for retail, hospitality and personal care companies
‘Restart Grants’ worth £5 billion are being introduced to support businesses before reopening.
This includes grants of up £18,000 for pubs, hairdressers and gyms.
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Non-essential retail premises will be able to claim up to £6,000.
The 5% reduced rate of VAT will also be extended for six months to September 30 – with an interim rate of 12.5% for six months.
Business rates relief will continue until the end of June.
Apprentice incentive payments are being increased
We’re taking what works to get people into jobs and making it better.
Today we’re doubling the apprentice incentive payments we give businesses to £3,000 – that’s for all new hires, of any age. #Budget2021pic.twitter.com/1ld67CRfNr
To help get young people into jobs, the Chancellor has also announced that apprentice incentive payments for businesses will be increased.
“Today we’re doubling the apprentice incentive payments we give businesses to £3,000 – that’s for all new hires, of any age,” he stated.
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The Stamp Duty cut is being extended
The new £500,000 nil rate band for #StampDuty won't end on 31st March, it will end on the 30th June.
Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September. #Budget2021pic.twitter.com/jq7APWRP5M
Sunak also confirmed that the Stamp Duty cut will be extended by three months.
The Chancellor stated: “The new £500,000 nil rate band for Stamp Duty won’t end on March 31, it will end on the June 30.
“Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September.”
Planned duty increases for alcohol and fuel are being cancelled
Planned increases in duties for spirits have been cancelled / Image: Adam Wilson via Unsplash
Elsewhere in the Budget, the Chancellor announced that planned increases in duties for spirits like Scotch whisky, wine, cider and beer will all be cancelled.
The planned increase in fuel duty is also being cancelled.
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Paying back the debt…
We're not going to raise the rates of income tax, national insurance, or VAT.
Instead, we are freezing personal tax thresholds. Nobody’s take home pay will be less than it is now, as a result of this.
In an attempt to pay back the money borrowed to fund the government’s COVID economic recovery packages – which has led to the highest rate of UK borrowing since World War II – Sunak said that he would be freezing personal tax thresholds.
Corporation tax will increase to 25% from April 2023.
The Chancellor pledged not to raise the rates of income tax, national insurance, or VAT.
“Nobody’s take home pay will be less than it is now, as a result of this,” Sunak stated.
“It is a tax policy that is progressive and fair.”
Independent review into police actions during Manchester synagogue terror attack finds ‘no misconduct’
Emily Sergeant
An independent review into the terror attack at a synagogue in Crumpsall last week has concluded there was ‘no misconduct’ by the police.
The investigation was carried out by the Independent Office for Police Conduct (IOPC) following the shocking knife and car attack, which took place last Thursday 2 October on Yom Kippur, the holiest day in the Jewish calendar, at the Heaton Park Hebrew Congregation Synagogue.
Two men sadly lost their lives during the attack – Adrian Daulby, 53, who is believed to have been shot dead by Greater Manchester Police (GMP) while trying to stop the attacker from entering the synagogue, and Melvin Cravitz, 66, a worshipper who also helped stop the attacker.
The attacker has been named as 35-year-old Jihad al Shamie – a 35-year-old British citizen of Syrian descent who lived in Prestwich – who at the time was on bail for an alleged rape, before being shot dead by police.
Statement from Chief Constable Sir Stephen Watson following an update from the Independent Office for Police Conduct. This comes after last week's attack at Heaton Park Synagogue. pic.twitter.com/5tQQKeNaTh
The IOPC says its investigation is ‘mandatory’ in situations where police use of force may have resulted in the death of a member of the public.
Their investigation looked at the actions and decision-making of the officers involved in the incident.
“Over the coming days, we will continue to review the substantial amount of evidence gathered up to now, and will begin the process of obtaining more detailed statements from police witnesses,” the IOPC said in a statment.
GMP’s Chief Constable, Sir Stephen Watson, says he ‘welcomes’ the IOPC’s finding that no misconduct is apparent in the actions required of officers in ‘bringing this dreadful attack to an end’.
An independent review into police actions during the Manchester synagogue terror attack has found ‘no misconduct’ / Credit: GMP
He said in a statement addressing the matter: “Our thoughts will always be with the families and loved ones of those directly affected by this tragedy together with the wider community across Greater Manchester and beyond. Our significant presence and determination to protect everyone from all faith communities across our city region will continue unabated.”
With the IOPC’s investigation into the incident still ongoing, CC Watson assured ‘GMP is committed to openness, transparency, and candour’.
“In respect of all our previous dealings with [al Shamie], and we have therefore asked the IOPC to include this aspect in their ongoing review,” CC Watson continued.
“This includes previous reports of harassment, and an arrest for reports of rape over the past year, for which he was on bail at the time of the attack.”
Featured Image – GMP
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Breakaway competition R360 issues statement after rubgy unions warn players of sanctions
Danny Jones
Prospective breakaway competition R360 have issued a response to the joint statement from multiple countries’ rugby unions, which has warned players of sanctions should they choose to join the new league.
While the vast majority seemingly remain opposed to the new concept, backing from certain key figures has resulted in the likes of the UK and Irish rugby unions, along with other key nations, sharing their unified stance against the potential rival.
Put in the simplest terms, the R360 model is rugby’s equivalent of what the proposed European ‘Super League’ was for football just a few years ago, with similar questions being raised around how it could jeopardise existing contests, player wellbeing and more.
Now, though, the new format – which has been largely backed and developed by former World Cup winner with England, Mike Tindall – delivered its own reply on Wednesday, 8 October.
Shared publicly to the press, the alternative tournament wrote: “It’s not always easy to embrace new opportunities, but as we’ve seen throughout history, it’s essential for any sport to grow. So many players love what R360 can do for them and the game, and we can’t wait to kick off next year.
“Player welfare is one of the key reasons for creating our global series, which will greatly reduce player load and capture the attention of a new generation of fans globally. We want to work collaboratively as part of the global rugby calendar.
“The series is designed with bespoke schedules for men’s and women’s teams and R360 will release all players for international matches, as written into their contracts. Our philosophy is clear – if players want to play for their country, they should have that opportunity. Why would the unions stand in their way?
“We look forward to submitting to the World Rugby Council for sanctioning next summer as planned.”
At present, R360 is due to hold its inagural season this time next year, with eight new male teams and four women’s sides expected to get underway from October 2026 onwards.
In addition to more lucrative contracts like those promised in the IPL (Indian Premier League) cricket, LIV Golf and the aforementioned albeit failed Super League, R360 is also set to offer a reduced playing schedule but one that would still tempt athletes away from their current teams to new franchises.
The national rugby unions of New Zealand, Australia, South Africa, Ireland, England, Scotland, France and Italy have released the following statement on the proposed R360 competition ⬇️#IrishRugby
Although they have assured player care is an utmost priority, their health and fitness is one of my concerns put forward by the total eight rubgy unions who have urged current pros to stay away from the breakaway competition.
In case you haven’t seen the statement release by England, Ireland and Scotland, as well as France, Italy, New Zealand, Australia and South Africa, it begins by “urging extreme caution for players and support staff considering joining the proposed R360 competition.”
Assuring that they welcome “investment and innovation in rugby”, they feel this particular idea won’t improve the sport but could instead “fragment or weaken it.”
Having assessed the proposals supposed value/addition to the “rugby’s global ecosystem”, it seems the fear is that the outcome will be a “net negative to the game”, with little to no detail as to how it can run alongside existing fixtures, assure proper management of player welfare and more.
As for Wales, despite opting not to put their name to the open letter itself, they have stated publicly: “The Welsh Rugby Union supports this statement, and we’re considering changes we may need to make to qualification rules in Wales as part of ongoing analysis following our recent consultation process.”
The statement continues: “The R360 model, as outlined publicly, rather appears designed to generate profits and return them to a very small elite, potentially hollowing out the investment that national unions and existing leagues make in community rugby, player development, and participation pathways.”
It seems there is deep concern for how it could affect grassroots and the international rugby too, not just league and union, and have failed to full explain or help key organisations “better understand their business and operating model.”
Most notably, they sign off by adding: “Each of the national unions will therefore be advising men’s and women’s players that participation in R360 would make them ineligible for international selection.”
What do you make of the whole debate – do you like the current schedule/format as it is, or do you think there’s room for a new chapter in the rugby world?
The Manc -
3rd March 2021 
