Rishi Sunak, the UK Government’s Chief Finance Minister has officially released the 2021 Spring Budget, giving us an insight into the financial help the government plans to provide whilst “building our future economy” he says.
The government has decided to extend the Coronavirus Job Retention Scheme until 30 September 2021. For employees, all rules will remain as before – they will continue to receive 80% of their salary, for hours not worked, until the scheme ends. The grant available through the CJRS is 80 percent of wages up to a cap of £2,500.
New Restart Grants
The Chancellor announced from April 2021, a new ‘restart grant’ will be available for businesses in England to help reopen the high street after lockdown. This will replace the Local Restrictions Support Grant (LRSG) which helped businesses who were forced to close.
The restart grant offers a one off cash grant of up to £18,000 to businesses, including: pubs, clubs, hotels, restaurants, gyms and salons.
Non essential retail businesses can get up to £6,000 through the scheme as they are expected to open sooner than other businesses.
Business rates holiday and discounts for tax year 2021-22
Business rates for all retail, leisure and hospitality businesses continue to be cancelled and has been extended until June 2021 for;
- shops,
- restaurants, cafés, bars, pubs,
- cinemas, live music venues,
- assembly or leisure properties (sports clubs, gyms, spas),
- hospitality properties (hotels, guest houses, self-catering accommodation).
After June 2021, business rates will be discounted for the remaining tax year 2021-22.
Bounce Back Loan Scheme
The BBLS provides loans between £2,000 and £50,000, with the government giving accredited lenders a 100 percent guarantee for the loans they pay out. This scheme is ending on 31st March 2021.
Self-employed
As part of the budget plans, Chancellor Rishi Sunak announced further financial help for self-employed workers, with a fourth and fifth grant covering lost earnings until September 2021. The fourth grant will be available from late April, covering 80% of lost earnings during February, March and April up to £7,500.
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