Businesses hope for more financial support in government’s budget plan

Chancellor Rishi Sunak is set to announce the government’s budget statement this afternoon.

This year, it is expected the budget will outline a plan to protect jobs and support public finances.

What can we look out for?

Here is a list of things Rishi Sunak could announce in his statement

Taxes

It has been reported that Mr Sunak will consider freezing the £12,500 threshold at which people start paying income tax and increasing tax on profits from 19p in the pound to between 23p and 25p.

Coronavirus measures

The furlough scheme will be extended until September. Employees will continue to receive 80% of their salary with employers asked to contribute from the end of July.

Economy

Latest figures show the government have borrowed around £271bn. In November, the GDP showed it to be the worst since the 1709 Great Frost. Boris Johnson said he thinks the recovery could be much stronger than many of the pessimists have been saying over the last six months or so.”

Ian Kelly, chief executive, Hull and Humber Chamber of Commerce, said: “Leaving thresholds as they are, increasing corporation tax over the rest of the cycle until the general election and bringing a more digital tax covering all digital tax covering all digital activity is all positive stuff.”

Hull Trains had to temporarily suspend their services from 9th January for the third time due to the travel restrictions impacting ticket sales.

Now the rail operator plans to resume services on 12th April but still need the furlough scheme to help keep staff on.

Louise Cheeseman, managing director, Hull Trains, said: “We have had to make other challenging cost saving decisions to protect the long-term future of the business and safeguard as many roles as possible. The only support we’ve had is furlough, as we cautiously re-launch, there won’t be a requirement for all colleagues to come back straight away. We would like furlough to be extended for a period of time.”

Hull MP Diana Johnson has written to the Chancellor to ask him to continue support for businesses in his next budget. She wrote: “I have received feedback from the owner/manager of an independent hotel, which has been kept open for key workers and essential business. They expressed a concern that the ‘bounce back’ loans were not high enough and that the interest-free period should be extended beyond one year.

Emma Hardy MP for Hull West and Hessle is also calling for more assistance for businesses. Reform the Bounce Back Loans (BBLs) into a ‘student loan’ type structure, where the thousands of businesses that have used them to survive the pandemic only start to repay them when they again start to make money.