Rishi Sunak’s Budget Explained In Two Minutes

Chancellor Rishi Sunak has delivered his budget in the House of Commons as the UK plots a course out of the Covid crisis. 

Here are the key points. 

Furlough extended until September

The emergency wages scheme was due to close at the end of March, but Sunak has extended the UK-wide scheme until September. However, he will taper the Treasury’s 80% contribution from July. 

Universal Credit uplift to stay… for 6 months 

The £20-a-week uplift to Universal Credit will be extended for a further six months. But it is likely the government will continue to face pressure to make the uplift permanent.

Stealth income tax rise 

Sunak introduced a four-year freeze on income tax thresholds.

The move does not hike taxes as such, but will be viewed as a stealth tax in that it will drag employees into higher tax bands as their salaries rise. 

It has been suggested the freeze will bring an extra £6bn into the Treasury coffers. 

The pensions lifetime allowance, and the annual exempt amount in capital gains tax, will also be maintained at current levels until April 2026, he said. 

Hike in tax on big business

Sunak announced he will raise corporation tax, which is paid on company profits, from the current 19% to 25% in April 2023. 

Small businesses with profits of £50,000 or less will continue to be taxed at 19%.

The measure will be controversial among some low tax-backing Tory MPs. 

Sunak stressed the UK would till have lowest rate is the lowest in the G7, with France firms paying 33% and Germany’s 30%. 

Joe Biden’s new US administration is reportedly preparing to raise its corporation tax level from 21% to 28%. 

95% mortgages and stamp duty holiday 

Sunak said help for home-buyers is on its way with the return of 5% deposits. As part of a mortgage guarantee scheme on properties worth up to £600,000, the government will underwrite the remaining 95% of the loan.

He said it was a “policy that gives people who can’t afford a big deposit the chance to buy their own home”, adding: “As the prime minister has said, we want to turn generation rent into generation buy.”

In a separate move to bolster the property market, Sunak extended the stamp duty holiday on homes worth up to £500,000 until the end of June. 

Total cost of Covid hits £325bn

Sunak has pumped extra £1.65bn into the rollout of the Covid vaccination programme. 

He told MPs the total Covid-19 support package amounted to a staggering £352bn, or £407bn once other fiscal support is included.

He said: “Coronavirus has caused one of the largest, most comprehensive and sustained economic shocks this country has ever faced and, by any objective analysis, this government has delivered one of the largest, most comprehensive and sustained responses this country has ever seen.”

Covid-hit firms to share £5bn grant fund

Businesses hammered by Covid, such as shops, pubs, clubs, gyms and hair salons, can apply for grants of up to £18,000 as part of a £5bn scheme.

He added that the 5% reduced rate of VAT for the tourism and hospitality sector will be extended for six months to the end of September, with an interim rate of 12.5% for another six months after that.

Super deduction

The chancellor announced a new “super deduction” for companies investing after the Covid pandemic. He said the new measure for investing firms can see them reduce their tax bill by 130% of the cost.

Alcohol and fuel

All alcohol duties will be frozen for the second year in a row and the planned increase in fuel duty has also been cancelled, the chancellor said.

Contactless payment limit

The contactless payment limit is to more than double to £100 from £45. While legally in force from Wednesday, the increase will not happen immediately as firms will need to make systems changes.

Money for the Union

Sunak announced an increase in funding for the devolved administrations by £1.2bn for the Scottish government, amid growing demands for a second independence referendum.

He also announced £740m for the Welsh government and £410m for the Northern Ireland Executive.

Arts funding boost 

Sunak allocated £400m to help museums, galleries and especially theatres in England to reopen. 

This is in addition to the £1.57bn Culture Recovery Fund, established by Sunak and culture secretary Oliver Dowden. 

There will also be a £300m package for sports – much of it targeted at cricket.

Treasury jobs moved north 

Hundreds of jobs will be relocated from London to Darlington under the chancellor’s Treasury North project.

Sunak said that after “a lot of thought and energy”, the new economic campus would be in the north-east market town. 

Civic leaders across the north had made overtures in recent weeks for the Chancellor to send Treasury jobs their way.

A new £12bn UK infrastructure bank will be established in Leeds, with £10bn of government guarantees, Sunak added. 

Freeports announced

Sunak announced the establishment of a new set of freeports, something he claims was only possible post-Brexit. 

They are: East Midlands Airport, Felixstowe and Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside.

The policy will give tax breaks, cheaper customs and make planning regulations simpler for firms. 

Domestic violence cash boost

Sunak announced an extra £18m for domestic violence programmes. 

It comes after the Covid lockdown saw a rise in attacks and domestic violence killings. 

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Budget 2021: Rishi Sunak Unveils Tax ‘Super Deduction’ For Firms Investing After Covid

Chancellor Rishi Sunak has unveiled a new “super deduction” for companies investing after the Covid pandemic.

Announcing his budget in the Commons, Sunak said when firms invest, his new policy would see them reduce their tax bill by 130% of the cost.

Sunak also revealed that the government will separately hike corporation tax on the profits of big business from 19% to 25% in April 2023, something which will make him unpopular with some low-tax Tory backbenchers. 

But insisting that the UK will have a “pro-business tax regime” after Covid, he told MPs the new super deduction will unlock investment and specifically reward firms with bold expansion plans in the wake of the pandemic.

Though little detail is yet clear about the new policy, Sunak said in the Commons: “While many businesses are struggling, others have been able to build up significant cash reserves. We need to unlock that investment, we need an investment-led recovery.

Press Association

Chancellor Rishi Sunak will unveil his budget on Wednesday 

“So today I can announce the ‘super deduction’. For the next two years, when companies invest they can reduce their tax bill, not just by a proportion of the cost of that investment, as they do now, or even by 100% of the cost, the so-called full expensing some have called for – with the super deduction they can now reduce their tax bill by 130% of the cost.”

It is forecast to boost business investment by 10%, or around £20 billion extra per year, Sunak said.

Sunak said the corporation tax rise will come in from April 2023 and only apply to 10% of companies. 

Smaller businesses with profits of £50,000 or less will be protected from the hike and will continue paying corporation tax at the current level of 19%, he said.

Sunak said it meant 1.4m business – around 70% of companies – “will be completely unaffected”.

The rise puts the UK above the EU average of 21.7% but remains below the US corporation tax level of 27%, though president Joe Biden has said he is looking to increase.

France’s rate is 26.5%, Germany has a rate at 30%, Canada at 26.5%, Japan at 30.62% and Italy at 24%, according to data from KPMG.

The chancellor also said a new UK Infrastructure Bank will be located in Leeds.

He told MPs: “The bank will invest across the UK in public and private projects to finance the green industrial revolution.”.

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BBC Three To Return To TV Screens After String Of Recent Hit Shows

BBC Three is to return to TV screens after a five-year absence, it has been announced.

Following the success of original shows like Fleabag, Killing Eve, Normal People and RuPaul’s Drag Race UK, the corporation has laid out plans for BBC Three to begin airing on regular television once again, having been online-only since February 2016.

“BBC Three is a BBC success story, backing creativity, new talent and brave ideas has resulted in hit after hit, from Fleabag and Man Like Mobeen, RuPaul’s Drag Race UK and Jesy Nelson’s Odd One Out, to Normal People and This Country,” said Charlotte Moore, the BBC’s chief content officer.

“The BBC needs to back success and make sure its programmes reach as many young people as possible wherever they live in the UK. So regardless of the debates about the past, we want to give BBC Three its own broadcast channel again.”

BBC

Phoebe Waller-Bridge in Fleabag

Moore added: “It has exciting, groundbreaking content that deserves the widest possible audience and using iPlayer alongside a broadcast channel will deliver the most value.”

It’s been proposed that BBC Three will return to screens in January 2022, with the move being described as “part of our drive to deliver more value to audiences”.

However, the BBC has said the channel will not be airing 24-hours, and will instead broadcast between the hours of 7pm and 4am.

The corporation’s children’s channels CBeebies and CBBC also have limited schedules, with the former airing between 6am and 7pm, and the latter broadcasting between 7am and 9pm.

BBC/World of Wonder/Ray Burmiston

The cast of Drag Race UK series two

A BBC press release stated: “The returning BBC Three will deliver greater public value by further increasing the diversity and creativity of our output and build on the strengths of BBC Three’s online performance. That’s why we will aim for at least two-thirds of the expanded BBC Three’s programme spend to be outside of London and across the UK.

“BBC Three has a strong heritage in breaking and supporting new British talent and this will create a bigger platform to launch and celebrate them.

“It will provide us with a new shop window to reach a younger audience currently underserved by the BBC, bringing them the best BBC young programming and talent across all genres.”

Past successes for BBC Three have included comedies like Gavin & Stacey, The Mighty Boosh and Little Britain.

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Search For Missing UK Case Of Brazil Covid Variant Narrowed To 379 Households

The search for the unidentified person who has tested positive for the Brazilian variant of Covid in the UK has been narrowed to 379 households in the south east of England.

Speaking in the Commons on Tuesday, Matt Hancock said the government was contacting “each one”.

Six cases of the variant, known as P1, have been found in England and Scotland.

But on Monday health officials announced they were still hunting for the identity of one of the six.

Hancock said: “We know that five of these six people quarantined at home as they were legally required to do.”

“Unfortunately one of these six cases completed a test but didn’t successfully complete the contact details. Incidents like this are rare and only occur in around 0.1% of tests.”

The health secretary told MPs: “We’ve identified the batch of home test kits in question, our search has narrowed from the whole country down to 379 households in the south-east of England and we’re contacting each one.

“We’re grateful that a number of potential cases have come forward following the call that we put out over the weekend.”

Hancock said the current vaccines being rolled out had not yet been studied against the P1 variant.

“We’re working to understand what impact it might have, but we do know that this variant has caused significant challenges in Brazil,” he said.

“We’re doing all we can to stop the spread of this new variant in the UK, to analyse its effects and to develop an updated vaccine that works on all these variants of concern and protect the progress that we’ve made as a nation.”

He added: “We have no information to suggest the variant has spread further.”

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‘A Womb Full Of Nails’: These Pictures Show The True Pain Of Endometriosis

Like “tightening barbed wire” or “a womb full of nails and daggers” – these are just two ways women describe the debilitating pain of endometriosis, in a new “pain dictionary” that aims to reduce diagnosis times for the condition.

One in 10 women are thought to experience endometriosis – which equates to 176 million women globally – yet astonishingly, it still takes an average of seven and a half years to be diagnosed.

Endometriosis occurs when tissue similar to the lining of the womb grows outside the womb. This tissue bleeds monthly, but there’s nowhere for this blood to go.

It can cause excruciating pain, like “organs wrapped in slowly-tightening barbed wire, followed by sudden intense tightening pain which can be so intense it’s almost difficult to breathe”, says Emma Sutt, one of the illustrators involved in the project, who has endo herself.

Barbing, by Emma Sutt

Barbing, by Emma Sutt

Many women experience delays in diagnosis and treatment due to perceptions that even severe period pain is ‘normal’. Over half (51%) of women and men (52%) think period pain is something women should endure, according to research by Bodyform.

It means many endometriosis sufferers are shamed into silence, while medical professionals underestimate the impacts of living with the condition.

In reality, endo can destroy women’s confidence, sex lives, careers and mental health. In one study of 7,000 women across 52 countries, over 40% had given up or lost their job because of endometriosis.

Monster, by Augustine Cerf.

Monster, by Augustine Cerf.

The pain dictionary is now available as an e-book and in hard copy for GPs who want to gain a better understanding of the condition. It’s hoped it will also give women “new language” to describe their pain.

Currently, healthcare professionals tend to ask patients to describe their pain on a scale of one to 10, but the experience of pain is often highly individual – and often can’t be reduced to a number.

The dictionary is part of #PainStories, a campaign by Essity, the creator of Libresse and Bodyform, designed to tackle the gender pain gap.

“A lot of women think painful periods is normal but actually, it’s not, particularly when the periods are starting to affect activities in your daily life,” says Dr Shireen Emadossadaty, a GP and women’s health specialist who has worked on the campaign.

“Opening up the conversation around period pain will encourage women to see their GP, to be persistent about their symptoms and hopefully we can bring down that diagnosis time. You’re not alone, period pain is common but it’s not normal and it’s not something you should be suffering with.”

Bodyform's digital museum. 

Bodyform’s digital museum. 

People with endometriosis were asked to describe their pain, and their testimonials were then turned into striking illustrations.

These illustrations appear in the book, as well as a new digital ‘Pain Museum’, an exhibition offering more information about endometriosis.

Here are just some of the artworks, coupled with quotes about how it really feels to live with endometriosis.

Fire sickness, by Venus Libido

“The pain burns, stings and aches sometimes all at once. I feel it build up in my lower body like fire, and hot knives pushing from the inside out. The pain travels from my uterus across my stomach and around my sides, down through my legs and up my back until it starts all over again from the source. I feel sick and exhausted from the pain overriding every part of me.”

Misery Roulette, by Selby Hurst

“It’s a fun-sponge roulette of misery. Cramps that stop me moving, yo-yoing emotions, gut-wrenching nausea, being sick, wanting to eat nothing and then everything, back pain, breast pain, alarmingly painful constipation, diarrhoea so bad you can’t leave the house, headaches, migraines, worsening depression, fatigue, anxiety, stress and a whole heap more.”

Misery Roulette by

Misery Roulette by

Inner Nails, by Augustine Cerf

“Hundreds of nails piercing my uterus, my whole pelvis in agony. The pain radiates down my legs, and through my whole body. From one second to the next, I can’t stand up.”

Torture Grips, by Em Cooper

“Like torture. Like somebody is gripping, squeezing, cutting, prodding, stabbing you inside, and won’t let go. The waves of pain last for so long you can only take some painkillers, curl into a ball, and cry yourself to sleep.”

Torture Grips, by

Torture Grips, by

Inner Wringing by Augustine Cerf

“It’s like someone’s wringing my organs. And unbelievable tugging.”

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Golden Globes: ‘Amazing, Weird And Wonderful’

ENTERTAINMENT

The Golden Globes for film and television, organized by the Hollywood Foreign Press Association, were handed out at a virtual ceremony hosted by comedians Tina Fey and Amy Poehler. Big winners included Anya Taylor-Joy, Catherine O’Hara and a posthumous award for Chadwick Boseman. But the awards, with most nominees joining via video-link, were not without their glitches including Daniel Kaluuya being muted while trying to give his acceptance speech.

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Trump Returns To Political Stage And Hints At 2024 Presidential Run

NEWS & POLITICS

Former President Donald Trump took to the stage on February 28, for the first time since leaving office, with a typically fiery speech at the Conservative Political Action Conference (CPAC). Trump called for Republican Party unity as he continued to stoke divisions across America with misinformation about the 2020 election.

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Boris Johnson Says Tough Border Controls Introduced ‘As Fast As We Could’

Boris Johnson has said he moved “as fast as we could” to impose strict border controls, as health officials hunt for a person in the UK infected with a Brazil variant of Covid.

The prime minister said the government’s hotel quarantine programme, introduced on February 15, was “a very tough regime”.

The variant, known as P1, was first identified on January 10 in people arriving in Japan from Brazil and is thought to have originated in the Brazilian city of Manaus.

On January 14 the government banned travel to the UK from Brazil and other South American countries.

British nationals were still allowed to return but had to isolate for 10 days at home.

On January 27, the government announced plans to force arrivals from a “red list” of 33 countries, including Brazil, to quarantine in hotels.

But it did not come into force until 19 days later.

Public Health England (PHE) has found six UK cases of the P1 variant in the UK.

But one of the infected people, who was thought to have been tested on February 12 or 13, has yet to be identified. 

Asked on Monday if the government had been too slow to implement quarantine hotel measures. Johnson said: “I don’t think so, we moved as fast as we could to get that going.

“It’s a very tough regime. You come here, you immediately get transported to a hotel where you are kept for 10 days, 11 days.

“You have to test on day two, you have to test on day eight, and it’s designed to stop the spread of new variants while we continue to roll out the vaccination programme.

“We don’t have any reason at the present time to think that our vaccines are ineffective against these new variants of all types.”

The prime minister said PHE did not think the cases of the variant were a “threat to the wider public”.

Nick Thomas Symonds, Labour’s shadow home secretary, said the situation showed “unforgivable incompetence” from the government. 

“Despite being warned time and time again, they have failed to act to protect our borders against emerging Covid variants and could put at risk the gains from the vaccine,” he said.

“People will be appalled to hear someone with the Brazilian variant cannot be identified, raising questions about how many others may have been missed by quarantine measures.

“There is no excuse for continuing to ignore Labour’s call for a comprehensive hotel quarantine system.”

Labour has demanded a blanket approach that would see all arrivals placed into hotel quarantine, not just those from a limited number of countries.

MPs were told last week that only 1% of people arriving in the UK every day are required to isolate in hotels. 

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Nigel Farage Gets Fact-Checked By The Home Office Over ‘Incorrect’ Migrant Covid Claims

Nigel Farage has been called out by the Home Office over a tweet in which he claimed 12 migrants arriving in Dover on Saturday had tested positive for coronavirus.

The Reform UK leader detailed what he described as a “Covid crisis” and called on home secretary Priti Patel to “get a grip”.

But hours later the Home Office refuted the claim, saying none of the people referred to by Farage had tested positive.

“This is incorrect,” it said in a tweet. “None of these 12 people tested positive for Covid-19. All adults who arrived today have been tested for Covid-19.”

Four small boats in total carrying 87 people including children made the dangerous Channel crossing into the UK on Saturday.

The Home Office has said all adults who arrived in Dover were tested for Covid-19, and only one person tested positive.

It is not known how Farage obtained the false information and his tweet is yet to be deleted.

HuffPost UK has contacted Reform UK for comment.

Elsewhere, a new study last week found those who support Reform UK are the least likely to take up the offer of a coronavirus jab.

Only 53.7% of those planning to vote for Reform UK favour taking the vaccine, a two-wave study by Oxford University found.

This contrasts dramatically to over 90% for supporters of the Conservatives, Labour and the Liberal Democrats, at 94.8%, 91.4% and 92.1% respectively, and 100% for those who intend to vote for the SNP.

People who did not know who they would vote for were less likely to take the vaccine at 82.6%, as were supporters of the Green Party at 77.4%.

The study found strong relationships between political attitudes and intention to accept the jab, with whether you voted for Brexit also appearing related to vaccine acceptance, according to Oxford researchers.

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