Budget 2021: Chancellor reveals spending plans for support and recovery

Land March 4, 2021

The Chancellor Rishi Sunak has delivered his Budget as the Government sets out their strategy to lead the recovery from the impact of COVID-19.

In his Budget statement to Parliament, Mr Sunak outlined a £65 billion three-point plan to provide support for jobs and businesses.

The Chancellor told Parliament: “This Budget meets the moment with a three-part plan to protect the jobs and livelihoods of the British people.

“First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis.

“Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that.

“And, third, in today’s Budget we begin the work of building our future.”

The furlough scheme has been extended to September, paying up to 80% of people’s wages., while the Self-Employment Income Support Scheme (SEISS) will continue with a fourth and a fifth grant. The Chancellor announced that more than 600,000 people, many of whom became self-employed in 2019-20, may now be able to claim direct cash grants under SEISS.

As part of Government efforts to support, protect and create jobs, the Chancellor announced increasing support with £126 million of new money to enable 40,000 more traineeships, and doubling the cash incentive to firms who take on an apprentice to a £3,000 payment per hire.

Beginning April 2021, the Chancellor revealed a new super-deduction will cut companies’ tax bill by 25p for every pound they invest in new equipment, allowing them to reduce their taxable profits by 130% of the cost – a measure potentially worth £25 billion to companies over the two-year period the super-deduction will be in full effect.

The Chancellor also detailed a number of schemes he envisaged would make the UK a “scientific superpower”. This includes projects to support people gain management training and provide small business with training in digital skills. Mr Sunik also confirmed £1.6bn to support the vaccine roll-out programme.

For the defence industry, there were no specific announcements on government investment within the Chancellor’s address, with much of the government’s spending plans already being outlined in the Spending Review last November.