Chancellor Rishi Sunak is outlining his 2021 budget to MPs in the House of Commons.
Setting out his second budget, Mr Sunak said told the Commons: “The damage coronavirus has done to our economy has been acute.”
More than 700,000 jobs have been lost, the economy has shrunk by 10 per cent and borrowing is the highest it has ever been outside of wartime.
Office for Budget Responsibility predict that the economy will return to its pre-COVID level by the middle of next year, six months earlier than planned.
The economy will be three per cent smaller than before the coronavirus pandemic in five years’ time.
12.40pm – Furlough extended until end of September – no changes to terms. The Government will ask businesses to contribute 10 per cent in July and 20 per cent in August and September.
12.41pm – Support for self-employed will continue until September. A fourth grant will cover the period of February to April and a fifth and final grant from May onwards. The fourth grant will offer support for 80 for per cent of average trading profits for three months. With the fifth grant people will receive grants for three months of average profits.
12.42pm – Over 600,000 who became self-employed last year can now apply for fifth and final grants.
12.43pm – Universal credit uplift of £20 per week will continue for six months.
12.44pm – The living wage will rise to £8.91 from April.
12.45pm – The incentive payments to businesses for all new apprentice hires will double – up to £3,000.
12.46pm – £19m announced for domestic violence programmes.
12.47pm – New restart grant from April. Non-essential businesses to receive up to £6,000 per premises. Hospitality and leisure venues, including gyms, grants of up to £18,000.
12.47pm – £700m for arts, culture and sport institutions, backing the UK and Ireland’s football 2030 World Cup bid.
12.47pm – Recovery loans will be available to businesses of £25,000 up to £10m. This will be accompanied by a Government guarantee of 80 per cent.
12.49pm – Hospitality and tourism firms will continue to be eligible for a five per cent reduction in VAT until September 30. An interim rate 12.5 per cent for another six months.
12.50pm – The £500,000 nil-rate band for stamp duty will now end June 30. Nil-rate band will be £250,000 until the end of September. Usual level £125,000 from October 1.
12.50pm – Business rate holiday will continue until the end of June.
12.51pm – A Government guarantee for lenders will mean 95 per cent mortgages will now be available from private lenders.
12.53pm – £65bn in measures this year and next to boost the economy.
12.54pm – OBR forecast this year’s borrowing will hit record amount – £355bn.
12.57pm – Debt to peak at 97.1 per cent of GDP in 2023-24.
12.58pm – “Interest rates will not remain low forever,” Mr Sunak says.
12.59pm – No rise in income tax, national insurance and VAT.
1pm – Personal tax thresholds will freeze. It will increase again to £12,570 next year but will remain at that level until April 2026. The higher rate threshold will be increased to £50,270 for the same period. This means the thresholds will not rise with inflation.
1.02pm – In 2023 corporation tax will rise to 25 per cent for the “most profitable companies”.
1.03pm – About 70 per cent of companies will be unaffected.
1.04pm – Struggling businesses can claim tax refunds of up to £760,000.
1.07pm – “For decades we have lagged behind international peers in business investment,”. When companies invest, a ‘super deduction’ will apply, reducing their tax by 130 per cent of the cost.
1.09pm – Alcohol and fuel duties frozen.
1.11pm – A new UK infrastructure bank to finance the ‘green industrial revolution’ will be allocated £12bn – supporting up to £40bn in infrastructure investment.
1.13pm – A retail savings bond will be available for ‘green’ projects.
1.14pm – Support for businesses to become more technologically competent.
1.15pm – £1.6bn for continuing scientific response to the pandemic and to prepare for future public health events.
1.16pm – Points-based visa for “high-skilled” migrants.
1.19pm – £1bn for New Town Deals.
1.20pm – £150m to allow for communities to take ownership of community venues such as theatres, shops, and sports venues at risk of collapse.
1.21pm – Applications open for “levelling up” fund.
1.21pm – Carlisle Lake District Airport not included in the list of eight freeports announced by the Chancellor.
1.25pm – “A moment of challenge and change” but also “opportunity”, Mr Sunak says.
Labour leader Keir Starmer said the budget: “Papers over the cracks, rather than rebuilding the foundations.”
Mr Starmer also highlighted the absence of social care in the budget announcement.