Budget 2020: Coronavirus

Coronavirus is starting to spread at a rapid rate in the UK. People are hanging on every word of the government – what is the plan moving forward?

Boris Johnson announced further precautions earlier this week, however Chancellor Rishi Sunak has given us the best idea of how the government is preparing for the next few months.


The Coronavirus Plan In Numbers

The Budget 2020 announcement usually focuses on the financial changes for the coming tax year. 

However, a large amount of Budget 2020 was spent outlining how the government would support the NHS and businesses during this time of turbulence.

Below are some of the key highlights from the Chancellor’s Budget announcement, focusing solely on the coronavirus.


£30 Billion To Support Businesses & The Economy

Rishi Sunak announced that there would be £30bn in extra spending, with £12billion going towards businesses and £18bn going towards counteracting the economic downturn as a result of coronavirus.

 

Sick Pay & Financial Aid

For employees, if anyone self isolates they will be entitled to statutory sick pay, even if they don’t have any symptoms. This shows the strong encouragement for people to stay at home if they are concerned.

For those who are self employed, they will be able to claim contributory Employment Support Allowance.

If a business has under 250 staff then the government has announced that they will refund sick pay payment for a 2 week period.

 

Tax, Overdrafts & Loans

The government has also announced that they will introduce an extended time to pay arrangements to help combat the impact that coronavirus will have on cash flow. This will allow businesses and the self-employed to defer their tax payments to HMRC.

There will also be an extra 1bn available in overdrafts and short-term loans during the coronavirus interruption.

 

The Vulnerable & The NHS

In support of the NHS and other public services, the government is pledging £5bn towards the increased workload that coronavirus is causing.

There will also be a £500m hardship fund for local authorities to distribute to vulnerable people in their areas.

We will keep you informed on any updates that the government makes regarding coronavirus, and how it will impact you and your business in the future.

Be sure to check out this blog for all of the Budget 2020 financial changes for the coming tax year.

 

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