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.”
NYC Mayor Zohran Mamdani gives thoughts on Andy Burnham running for Prime Minister
Emily Sergeant
Mayor of New York City, Zohran Mamdani, has given his thoughts on Andy Burnham’s intention to run for Prime Minister.
In case you missed it, after it was announced last Friday that Andy Burnham had clinched the victory in the crucial Makerfield by-election, winning 24,927 votes (54.8% vote share) and a majority of 9,231, he then went onto announcing his intentions to run for Labour Party leader, and therefore Prime Minister, after Keir Starmer confirmed he would be stepping down.
Greater Manchester‘s next Mayoral Election has also been announced, given that Burnham is now not eligible to stay in the role – with the date set for Thursday 30 July and candidates frequently being announced.
Talk of Burnham’s chances of running the country have been around for months now, but have ramped up considerably over the past week of course in the wake of his by-election win.
It’s fair to say that for much of Andy Burnham’s time as Mayor of Greater Manchester, especially in the wake of the COVID-19 pandemic, he was up there as one the most famous Mayors in the world… but over the past year, he’s arguably had to hand that unofficial title over to Zohran Mamdani, the current Mayor of New York City.
Mamdani is considered to be a democratic socialist, and campaigned for things like progressive, affordability-focused platform, supporting fare-free city buses, universal child care, city-owned grocery stores, a rent freeze on rent-stabilised units, additional affordable housing units, and a $30 minimum wage by 2030.
He has also expressed support for LGBTQ+ rights, comprehensive public safety reform, and tax increases on corporations and those earning above $1 million annually.
Mamdani was elected Mayor of New York City last October, and was officially sworn in on New Year’s Day at the start of this year.
Since then, he has successfully – very successfully, in fact – made a name for himself around the world, and has even managed to deliver on a good chunk of what he set out to do in his campaign, seeing many calls for him to become President one day.
Oh, and he’s also a massive (and very knowledgeable) football fan – an Arsensal fan, to be precise, but football in general really.
Appearing on BBC’s Football Daily podcast this week to talk about his love of the sport as the US currently hosts the 2026 FIFA World Cup, Mamdani was also asked to give his thoughts on Andy Burnham and his upcoming run to be Prime Minister.
“I don’t think anything comes with ease at that kind of a level,” Mamdani started out in response to host Mark Chapman’s question.
“I do think they are very important skills because many people have lost faith in Government, the place they earn that faith back, they decide to trust again, is at the most local level. That’s where they see what it’s like to have a Government that delivers for them.
“And if you’re able to respond to people, whether it’s in Greater Manchester or New York City, it is at the heart of what people are looking for for any kind of politics.
Mamdani then closed out his thoughts by questioning: “I don’t think he’s an Arsenal supporter though?” and when the hosts clarified that Burnham is an Everton fan, Mamdani responded: “Well at least you can respect that someone has suffered.”
He concluded: “No but like, I like it when I meet someone who’s a fan of a team that hasn’t just won and won and won.”
Featured Image – Wikimedia Commons
News
Trendy Ancoats wine bar Blossom Street Social to close after six years
Emily Sergeant
Trendy neighbourhood wine bar Blossom Street Social has announced its closure after nearly seven years serving the Ancoats community.
Blossom Street Social first opened its doors back in 2019, just months before the country – and the res of the world – was plunged into the COVID-19 lockdowns, but despite all the challenges during the early days, this wine bar went on to become a true staple of Ancoats life – hosting events, exhibitions, wine tastings, and everything in between.
But now, the owners have had to make the heartbreaking decision to close, saying they’ve ‘danced our last dance, played our last record, and poured our last glass of wine in Ancoats.’
Announcing the news in a statement to social media this week, Blossom Street Social said: “Blossom Street Social closes its doors after six and a half years at the heart of the Ancoats community.
Blossom Street Social has announced its closure after six years / Credit: The Manc Group
“When we opened in 2019, just months before the world changed forever, we couldn’t possibly have imagined the journey ahead. Through lockdowns, uncertainty and everything that followed, we somehow managed to build something that became far more than a wine bar.
“Wine was always at the heart of what we did, but so were the conversations, the music, the art and the community that grew around it.
“We’ve hosted tastings, exhibitions, launches, celebrations, social sessions and countless memorable nights. We’ve introduced people to wines they’d never tried before, watched friendships form and shared in some truly special moments.
“We’ve watched first dates become engagements, engagements become marriages, and couples return with babies in tow. We’ve celebrated birthdays, anniversaries, new homes and countless milestones alongside you. We’ve shared conversations, laughter, music and moments that mattered from our little corner of Ancoats. We will never forget them.”
The team then went on to thank ‘every customer, artist, DJ, supplier, collaborator and friend’ who became part of their story.
The owners also gave a special thank you to the staff members who stayed ‘to the very end’ and ‘showed up when it was hard’, admitting that they couldn’t have done it without them all.
The Manc -
3rd March 2021 
