The government will also provide an additional £5 million to begin a trial of domestic abuse courts in England and Wales, allowing criminal and family matters to be considered together. ↩, The OBR’s measure of RHDI per head differs from the ONS’s by including households and non-profit institutions serving households (NPISH) in the calculations, whereas the ONS measure refers to households only. Money raised from a 2% non-UK resident Stamp Duty Land Tax surcharge will be used to help fund policies to reduce rough sleeping in England. They will still be entitled to use red diesel for their heating use. When the review is concluded, HM Treasury will lay before Parliament a new Charter for Budget Responsibility; the Autumn 2016 Charter therefore remains in force at the current time. Published: 05:36 EST, 8 July 2020 | Updated: 10:45 EST, 9 July 2020 . The deficit has been reduced by four-fifths from a peak of 10.2% of GDP in 2009-10 to 1.8% of GDP in 2018-19. Public sector net debt is expected to continue to fall over the forecast, from 79.5% in 2019-20, to a low of 75.0% in 2021-22 before rising slightly to 75.2% in 2024-25. [footnote 4] It then expects growth to fall back to 3.1% by 2024. Where measures do not apply UK-wide, the devolved administrations will receive a share of any additional funding for support in devolved areas through the Barnett Formula. 4 The overall resource spending envelope has been adjusted to include funding for this measure in future years. This will boost the support available to victims of rape and create a new digital hub to make the criminal justice process in England and Wales easier to understand. These will enhance coordination between regulators and ensure the UK continues to lead the way on financial services innovation and the use of technology, including on the regulation of payments and cryptocurrencies. Coronavirus Business Interruption Loan Scheme – The government will launch a new, temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, to support businesses to access bank lending and overdrafts. The government will consider proposals from areas such as the West Midlands Combined Authority to expand their existing brownfield land fund. 7 Departments have existing 2020-21 capital budgets. While the economy continues to face challenges, the government’s careful management of the public finances means that it is able to support the economy in the short term, while investing in the future. Budget 2020 image copyright PA Media Chancellor Rishi Sunak has delivered his first Budget in the House of Commons, announcing the government's tax and … [footnote 78] Through RIS2 the government will spend over £27 billion between 2020 and 2025. Delays to the UK’s departure from the EU affected the profile of economic activity throughout 2019, leading to volatility in quarterly growth over the year. The Budget will support and encourage this by increasing the rate of Research & Development Expenditure Credit from 12% to 13%. In advance of this, the Budget confirms up to £387 million in 2021-22 to provide certainty for local areas that they will be able to continue with existing priority Local Growth Fund projects that require funding beyond this year. This will deliver a range of local transport schemes, including an iconic new Central Park Bridge in Plymouth, a significant increase in the capacity of the Tyne and Wear Metro, and new cycleways in Bournemouth, Christchurch and Poole. In addition, the economy could be affected by demand-side impacts through a reduction in consumer spending, and lower business investment and exports. At the CSR, the government will assess the state of evaluation across all departmental spending programmes and require every department to produce plans to improve evaluation of its work. Scotland, Wales and Northern Ireland will receive significant funding through Barnett consequentials for the devolved administrations to deliver public services, infrastructure and other priorities: the Welsh Government’s block grant will increase by over £360 million through to 2020-21 before adjustments for tax devolution – this includes a 5% uplift in Barnett consequentials agreed as part of the Welsh Government’s fiscal framework in 2016, the Northern Ireland Executive’s budget will increase by over £210 million through to 2020-21. [footnote 98], Company vehicles – From 6 April 2020, fuel benefit charges and the van benefit charge will increase in line with CPI. The drivers of any economic impact are health-related factors, including how many people get infected, the persistence of an outbreak and measures put in place to protect public health and prevent the spread. They have been given the choice of taking on the updated block grant adjustments following the UK Budget or waiting for the outturn reconciliation processes that will take place after the end of 2020-2021. [footnote 34] RIS2 will be delivered alongside the government’s plans for decarbonising the transport sector, which are set out in the ‘Growing a greener economy’ section of this chapter. (42), Red diesel: Removing entitlement – The government will remove entitlement to the use of red diesel and rebated biofuels from April 2022, except for agriculture (including horticulture, pisciculture and forestry), rail and for non-commercial heating (including domestic heating). ↩, ‘National Infrastructure Assessment’, National Infrastructure Commission, July 2018. Ahead of that, the Budget provides £29 million a year by 2023-24 to support primary school PE teaching and help schools make best use of their sports facilities. Institutes of Technology – The government will provide £120 million to bring further education and higher education providers in England together with employers to open up to eight new Institutes of Technology. This will avoid the government having to make short-term responses to changes in the welfare forecast, while ensuring welfare spending remains sustainable in the medium term. The Budget announces further support targeted at each of the nations – including a package for the whisky industry, action to allow TV channel S4C to recover in full any VAT it pays, and legislation to provide appropriate exemptions for payments for injuries relating to the Troubles in Northern Ireland. Most properties that are eligible for SBRR will have a lower rateable value, and so this will represent an even greater proportion of their annual rent. Date: 29 July 2020 . ↩, HM Treasury internal estimate using HMRC data. The UK’s success in the global economy will be rooted in innovation and cutting-edge technology. The government will also support the installation of heat pumps and biomass boilers by introducing a Low Carbon Heat Support Scheme. Animal health science estate – The government will invest £1.4 billion over 10 years in the animal health science infrastructure at Weybridge, enhancing the UK’s science capability whilst protecting the nation from the increasing threats of current and emerging animal diseases. Chart 2 shows the different sources of government revenue. Enhancing Housing Benefit compliance – The Budget provides further investment of up to £12 million per year in local authority resource to maximise their capacity to tackle Housing Benefit fraud and error. The Budget announces that the amount families can save into a JISA or CTF will be more than doubled in 2020-21, increasing from £4,368 to £9,000. He will be expected to discuss further plans to get the UK economy back on track to help businesses and the UK population deal with the financial ramifications of the Covid-19 (Coronavirus) pandemic. Start-Up Loans – The government will extend the funding of the British Business Bank’s Start-Up Loans programme to the end of 2021-22, supporting up to 10,000 further entrepreneurs across the UK to access finance to start a business. The government will keep the level of the rate and threshold under review to ensure that the tax remains effective in increasing the use of recycled plastic. Investing in skills and infrastructure to improve productivity across the UK permits growth by enabling firms to pay higher wages, offer goods and services at lower prices, and increase their profits. The government’s Action Plan on Coronavirus sets out the potential scale of these effects in the event of a severe outbreak. Legislation will require businesses to pay the DST on an annual basis, consistent with the draft legislation published in July 2019. The OBR forecasts average earnings to grow by 3.3% in 2020 and rise to 3.6% in 2021. This policy will draw on international accounting standards which many large businesses already follow. The Budget sets out ambitious action on tree planting, ultra-low emission vehicles, heat decarbonisation and carbon capture and storage. BUDGET 2020 LIVE: The latest analysis, reaction and verdicts on the Chancellor's speech - and what it means for you. Source: Office for Budget Responsibility and HM Treasury calculations. The government will also invest in the natural environment, planting enough trees to cover an area the size of Birmingham, restoring peatlands, and providing more funding to protect the UK’s unique plants and animals. The government will introduce legislation to apply a zero rate of VAT to e-publications from 1 December 2020, which will make it clear that e-books, e-newspapers, e-magazines and academic e-journals are entitled to the same VAT treatment as their physical counterparts. ... UK chancellor of the exchequer, Rishi Sunak. It is a Budget that lays the foundations of the UK’s future prosperity and delivers on the government’s promises to the British people. The Chancellor Rishi Sunak presented the 2020 Budget on 11 March. Enhanced market access support – DIT will increase its resource and capability to identify and address market access barriers preventing UK exporters from accessing particular markets. In order to ensure government programmes deliver for the public, it is crucial that spending decisions are based on robust evidence and evaluation of their impact. The development of these alternatives will be supported by the government more than doubling its investment in the Energy Innovation Programme. This will support hardworking people to balance their caring responsibilities with work, particularly women who disproportionately undertake unpaid caring activities. The government is transforming regional connections through the largest ever investment in England’s motorways and major A roads. The government supports this activity, in part, by offering low cost loans through the Public Works Loan Board (PWLB). ↩, HM Treasury calculations based on ‘Air Passenger Duty Bulletin’, HMRC, September 2019. The current account deficit averaged 4.7% of GDP in the first three quarters of 2019. Electric vehicle charging infrastructure investment and review – The government will provide £500 million over the next five years for electric vehicle charging infrastructure. Removing the student finance three-year residence requirement for victims of domestic abuse – From academic year 2020-21, the government is removing the three-year ordinary residence requirement for student finance for those granted Indefinite Leave to Remain as victims of domestic abuse. Gigabit broadband – The Budget commits £5 billion to support the rollout of gigabit-capable broadband in the most difficult to reach 20% of the country. There will also be spillovers through financial markets and potential hits to business and consumer confidence. Arts Premium – The Budget provides £90 million a year to introduce an Arts Premium from September 2021, to help schools in England to provide high-quality arts programmes and extracurricular activities for pupils. 1.1 This paper considers the Revised Budget, which covers progress in the first half of 2020/21 against the Emergency Budget and the 18-month period of the second half of 2020/21 and the full financial year 2021/22. 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