UK Budget 2021: Five key takeaways

• 1. VAT cut for hospitality and tourism businesses to be maintained and extended

The VAT cut will remain at 5% until September 2021, with an interim 12.5% rate to apply for the following six months until  March 31, 2022. Around 750,000 eligible businesses in retail, hospitality and leisure sectors will also benefit from business rates relief.

• 2. Furlough will be extended until the end of September 2021

The scheme, which pays 80% of employees’ wages for the hours they cannot work during the coronavirus pandemic, will ask employers to contribute 10% in July and 20% in August and September.

• 3. £5 billion for restart grants 

A one-off cash grant of up to £18,000 will be available for hospitality, leisure, personal care, accommodation and gym businesses in England.

• 4. Government widens self-employed grants access

Around 600,000 more self-employed people (who filed a tax return in 2019-20) will now be eligible for government help for the first time.

• 5. Support for the whole UK

The Budget provides an additional £2.4bn to the devolved administrations in 2021-22 through the Barnett formula.

• The Scottish Government will receive £1.2bn
• The Welsh Government will receive £740m
• The Northern Ireland Executive will receive £410m