The Government have announced the 2020 budget this morning in the House of Commons, but how will it impact our everyday lives?
We’ve broken down the new 2020 Government into a handy guide so you can see everything in a snapshot. From benefits, to pensions, to small businesses, we’ve got you covered. Let us know your thoughts on Chancellor Rishi Sunak’s first Budget in the comments!
- Everyone told to self isolate is to receive statutory sick pay, even if they haven’t got Coronavirus symptoms.
- Self employed workers who wouldn’t have historically been eligible for statutory sick pay will be able to claim Employment Support Allowance.
- Councils in England will receive a £500m hardship fund to help the most vulnerable people in the community.
- Companies with less than 250 staff will be refunded for sick pay payments for a fortnight period.
Your tax, wages, and pension
- The tax threshold for National Insurance Contributions is set to rise from £8,632 to £9,500. This will take over half a million employees out of the tax altogether, which is great news! It means members of the public who earn more than £9,500 annual will gain £85 per year. Every little helps!
- The tampon tax is set to be scrapped! 5% VAT on women’s sanitary products will be abolished.
- The Conservative government have confirmed they will also recalculate the tax paid on pensions of higher earners.
Housing and travel
- Over £600bn will be spent on our country’s roads, rail, broadband internet and housing. This investment will happen before the middle of 2025.
- £27bn is being spent on motorways and other key roads, with £2.5bn being used to fix potholes and to resurface uneven roads.
- The government have created a new £1bn fund to remove unsafe combustible cladding from all public and private housing higher than 18 metres.
Other items of the Budget to note
- The plastic packaging tax comes into force from April 2022 – so expect to see more sustainable packaging from all supermarkets! Manufacturers of products with less than 30% recyclable packaging material will also be fined £200 per tonne. Here’s to a more environmentally friendly UK!
- Firms eligible for small business rates relief can apply for a £3,000 grant. Great news if you’re a small business owner.
- Due to changes in tobacco tax, cigarettes will become more expensive. Expect to see the price of 20 cigarettes rise by 27p.