Budget 2020: What You Need To Know

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.
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