British Chancellor Rishi Sunak delivering his 2021 Budge
That means the £20 up lift for Universal Credit and the furlough scheme will now run until September 2021.
But the Chancellor also announced plans to increase the tax on large company profits from 2023, in his Budget speech.
National insurance and VAT rates will not go up – but more people will be pushed into the top income tax bracket.
There will be no duty increases on fuel or alcohol.
Mr Sunak said he would do “whatever it takes” to support people and business.
But this was criticised by Labour and the Scottish National Party who accused the Chancellor of “just congratulating himself over his budget”.
They said there was no provision for social care or child poverty.
The headline rate of corporation tax will go up from 19% to 25% in 2023, with an exemption for smaller businesses, and income tax thresholds will be frozen.
He told MPs that despite the £280bn of support already committed to protecting the economy the damage done by coronavirus has been “acute”.
“Our economy has shrunk by 10% – the largest fall in over 300 years. Our borrowing is the highest it has been outside of wartime.
“It’s going to take this country – and the whole world – a long time to recover from this extraordinary economic situation. But we will recover.”
The main points of his hour long speech in the House of Commons today were:
CORONAVIRUS SUPPORT
Furlough to be extended until the end of September
Government to continue paying 80% of employees’ wages for hours they cannot work
Employers to be asked to contribute 10% in July and 20% in August and September
Support for the self-employed also to be extended until September
600,000 more self-employed people will be eligible for help as access to grants is widened
£20 uplift in Universal Credit worth £1,000 a year to be extended for another six months
Working Tax Credit claimants will get £500 one-off payment
Minimum wage to increase to £8.91 an hour from April
TAXATION
No changes to rates of income tax, national insurance or VAT
Personal income tax allowance to be frozen at £12,570 from 2022 to 2026
Higher rate income tax threshold to be frozen at £50,270 from 2022 to 2026
Corporation tax on company profits to rise from 19% to 25% in April 2023
Rate to be kept at 19% for about 1.5 million smaller companies with profits of less than £50,000
Stamp duty holiday extended to June, with no levy on sales of under £500,000
No changes to inheritance tax or lifetime pension allowance or capital gains tax allowances
HEALTH AND EDUCATION
£1.65bn to support the UK’s vaccination rollout
£19m for domestic violence programmes, funding network of respite rooms for homeless women
£40m of new funding for victims of 1960s Thalidomide scandal and lifetime support guarantee
NATIONS AND REGIONS
£410 million for the North of Ireland under Barnett Formula
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