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.”
Opening date finally confirmed for new Uniqlo store at the Trafford Centre
Emily Sergeant
Uniqlo is preparing to open its second store in Greater Manchester, and the official launch date has finally been confirmed.
The popular Japanese high street fashion retailer currently operates 24 stores in the UK, with its first British store having opened its doors all the way back in 2001, and its first European flagship store opening on Oxford Street in London in 2007 – but it was revealed earlier this year in April that Manchester was set to get a second helping.
Uniqlo announced that it would be opening its second Greater Manchester inside the Trafford Centre this autumn, following the huge success of its city centre store opening on Market Street in 2019.
The Trafford Centre store is set to make Manchester the first location outside of London to have two Uniqlo stores.
When news broke that the hoardings had officially gone up inside the shopping centre, elated shoppers raced to the comments to say things like: “No way! I’ve been waiting years for this.”
Uniqlo is preparing to open second its Manchester store inside the Trafford Centre next month / Credit: | The Manc Group
“Uniqlo in Trafford Centre would be a dream come true,” another person said on Instagram, while a third added: “I will never have to step foot on Market Street again,” and plenty others chimed in with comments like ‘finally’ and ‘can’t wait’.
And now, we officially have an opening date to share with you.
Uniqlo will open in the Trafford Centre for the first time on Thursday 15 October, with plenty of events happening across its extended opening weekend.
Traditional Japanese Taiko drumming performances will be happening throughout the day on Thursday 15 and Saturday 17 October, while the first 300 customers to spend over £69.90 in store on the Thursday (15 October) will get a special Uniqlo Manchester goody bag.
Uniqlo’s arrival at the Trafford Centre follows the opening of several other high-profile stores in recent months, like Urban Outfitters, White Company, Stradivarius, and many more.
Featured Image – The Manc Group
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‘Do not let Britain’s independent businesses disappear on your watch’ – Manchester bakery makes heartbreaking plea to Andy Burnham
Clementine Hall
A beloved Manchester bakery has issued an open letter to Andy Burnham ahead of the Budget begging him for help.
Barbakan Deli in Chorlton is basically an institution at this point.
The legendary bakery and delicatessen has been serving the community for 62 years, famed for its freshly-baked loaves of bread, its handmade sandwiches, and its pastries and cakes inspired by bakes from across Europe.
Posting on Instagram last night on Thursday 18 September, Frankie Dyer the director of Barbakan, issued an open letter addressed to Prime Minister Andy Burnham.
Images: The Manc Group
It read: “Dear Mr Burnham, As an independent business owner in the hospitality sector, I am begging you to please read this.
“Really read it. And seriously consider what businesses like mine are telling you before the upcoming Budget.”
It continued: “In just the last two years, we have self-funded new bakery machinery, new catering kitchens, essential repairs and renovations and opened a second retail site, creating another six local jobs. We have won more than ten national awards for the quality of what we do.
“We have invested. We have grown. We have employed more people. We have worked harder than ever. In short, Prime Minister, we are doing everything you keep asking British businesses to do.
“And our bank balance is finished. That is the reality.”
The letter finished by Dyer inviting Andy Burnham to come visit the bakery and pleading for a ‘fighting chance’ to save the business: “We need action. We need meaningful reductions in the tax burden placed on employers.
“We need Employer National Insurance looked at urgently. We need a business-rates system which allows independent high-street businesses to survive. We need VAT reform for hospitality. We need Corporation Tax to reward businesses which reinvest, employ and grow.
“And we need proper grants and incentives that help established independent businesses invest and expand — not schemes with endless criteria which most ordinary businesses can never access. We need you to do something.
“And we need more than one token gesture in the Budget. A band-aid for a bullet wound. So I am asking you, Prime Minister, to come back to Manchester and see it for yourself. Pop an apron on and stand behind our counter.
Images: The Manc Group
“Come into our bakery in the middle of the night and meet the people making Manchester’s bread while most of the city is asleep. Look at our payroll, our energy bills, our rates, our supplier increases.
“Look at what leaves our bank account every single week simply for the privilege of keeping 50 people employed and our doors open. You said you wanted a government that understood the regions. You now have an opportunity to prove it.
“Independent businesses across this country are not asking for a handout. We are asking for a fighting chance. I sincerely hope your next Budget gives us one”.
The Manc -
3rd March 2021 
