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.”
95% of Mancs apparently want the city to be ‘cashless’, new study reveals
Emily Sergeant
An eye-opening new study has found that only 5% of Mancs still use cash as their preferred method of payment nowadays.
It comes as no surprise that cash is less of a ‘king’ nowadays than it used to be, but now a new report by global financial technology company SumUp has suggests that only 5% of people in Manchester prefer to pay with cash, while 59% choose debit and credit cards, so that leaves one question… is Manchester on its way to becoming a cashless city?
To discover how payment preferences are evolving, SumUp conducted a nationwide survey to gather insights from UK consumers about their payment habits.
The company was particularly intrigued to not only discover payment methods people prefer, but what their concerns around certain payment methods, alongside how they feel about businesses that don’t accept digital payments.
95% of Mancs apparently want the city to be ‘cashless’ / Credit: Mylo Kaye (via Unsplash) | Pexels
Firstly, before we go any further, it’s important to note that almost two thirds (63%) of Manchester residents said they have changed the way they make payments over the past year.
Unsurprisingly, debit and credit cards remain the top choice for the majority of Mancs, with over half (59%) saying it was their preferred method of payment, followed by mobile payment methods such as Apple Pay and Google Pay at 24% – which is likely thanks to their ease of use and the ability to have multiple cards on one device.
While a third (31%) of Mancs said that they ‘don’t mind’ cash and still opt to carry it for situations where digital payments aren’t an option, a growing number of people in the city are feel that digital payments are more favourable, with 25% thinking that businesses should adapt to modern payment methods and whilst 28% finding it ‘inconvenient’ when a business doesn’t accept digital payments.
A further 11% of people even say that cash-only businesses wouldn’t be an option they’d consider, and would actually avoid them wherever possible.
Only 5% use cash as their preferred method of payment / Credit: Rawpixel
When it comes to concerns around digital payment methods, where do Mancs stand then? Well, the survey found that a third (33%) of people are worried about their reliance on technology, especially being unable to pay if their phone dies, for example, while an additional 32% of people are concerned about security risks such as hacking, fraud, or stolen card details.
Among other things, 26% of survey respondents also said they worry about the privacy aspect of digital banking and the tracking your data.
“While debit and credit cards continue to dominate as the preferred payment method, it’s clear that cash is slowly declining in use, particularly among younger generations,” Corin Camenisch, who is the Marketing & Growth Lead at SumUp, commented on the report.
“Looking ahead, we can anticipate a rise in innovative payment methods like digital wallets, especially as younger consumers increasingly embrace the convenience and flexibility they offer.”
Featured Image – Pavel Danilyuk (via Pexels)
News
Met Office predicts UK is set for ‘hotter than average’ summer
Emily Sergeant
The Met Office is predicting that the UK is set for a ‘hotter than average’ summer this year.
Fresh off-the-back of the news that 2025 is already the hottest spring on record, with a recorded 630 hours of sunshine from 1 March until 27 May, beating out the previous sunniest spring in 2020 by just four hours, the Met Office is now predicting that the UK is on the verge of a summer that’s ‘hotter than usual’.
According to its three-month outlook, the Met Office has predicted that it’s 2.3 times more-likely than ‘normal’ that it will be hot in the UK between 1 June and 31 August.
The average temperatures during those months are set to range from 10-17°C.
🌡️ ☀️ The UK has recorded its warmest and sunniest spring on record, according to provisional Met Office statistics.
Spring 2025 is now the 4th sunniest season overall for the UK, with only 3 summers sunnier since 1910.
Details in release below, or read this short thread 👇🧵
After it was revealed that this has also been the UK’s driest spring in more than a century, meteorologists are warning Brits that there could heatwave conditions could be reached at various times throughout the summer.
The release of the long-range forecast – which gives an indication of possible temperatures, rainfall, and wind speed over a period as a whole – comes after temperatures soared to 8°C (46F) above the average for this time of year this Saturday just gone (31 May).
It is important to note, however, that the Met Office thinks these predicted temperatures are similar to those in recent years, and it does not guarantee ‘prolonged’ hot weather.
The Met Office is predicting that the UK is set for ‘hotter than average’ summer this year / Credit: Mylo Kaye (via Unsplash)
The Met Office said in a statement: “While the current three-month outlook shows an increased chance of a hot summer, the temperature signals for this summer are similar to those for recent years and consistent with our warming climate.
“The increased chance of hotter than average temperatures is not a guarantee of prolonged hot weather or heatwaves, but it does mean that heatwave conditions could be reached at times.
“However, it’s important to bear in mind that an increased chance of hot conditions could also reflect a mix of hot and cool days, warm nights, or less extreme levels of warmth rather than continual heatwave conditions specifically.”
The Manc -
3rd March 2021 
