This fund was established at Spending Round 2019 to pilot new programmes to build an evidence base and test new ways of working collaboratively across the public sector. The funding could also allow rapid screening of potential therapeutics and support clinical trials to inform treatment and improve patient outcomes. Land availability, as constrained by the planning system, is the most significant barrier to building more houses. It will focus on linking departments’ spending proposals to the real-world outcomes they seek to achieve, and delivering value for money for taxpayers. The government’s Action Plan on Coronavirus sets out the potential scale of these effects in the event of a severe outbreak. The government will set out further plans for the Fund including at the CSR. National Skills Fund – The government will consult widely in the spring on how to use the new National Skills Fund. Maths schools – The government will provide an additional £7 million to support a total of 11 maths schools in England, covering every region. Since its introduction in April 2017, the Apprenticeship Levy has enabled the government to raise the standard of apprenticeships, supporting employers to make a long‑term, sustainable investment in training. [footnote 64] This unprecedented increase in investment will support a range of objectives, including: supporting world-leading research in all regions and nations of the UK, including by cutting bureaucracy, experimenting with new funding models, and establishing a new funding agency to focus on high-risk, high-reward research, meeting the great challenges facing society, including climate change and an ageing population, and providing funding to pursue ‘moonshot’ scientific missions, investing in the government’s own strategic science capability and improving public services, backing businesses to invest and innovate so that they can compete in the global technology-driven economy. Digital Identity Unit – The government will work to create a digital identity market that makes it possible for people to prove things about themselves without showing paper documents. The government will also remove the entitlement to use red diesel from April 2022, except in agriculture, fish farming, rail and for non-commercial heating (including domestic heating). The debt management objective, as set out in the ‘Debt management report 2020-21’, is, “to minimise, over the long term, the costs of meeting the government’s financing needs, taking into account risk, while ensuring that debt management policy is consistent with the aims of monetary policy.”. The UK is an outward-looking and open economy. Chapter 1 explains how the measures announced in the Budget support the Government’s long-term strategy. The Budget announces that the amount families can save into a JISA or CTF will be more than doubled in 2020-21, increasing from £4,368 to £9,000. Tax treatment of the Troubles Permanent Disablement Payment Scheme – The government will legislate in Finance Bill 2020 to introduce income tax, inheritance tax and capital gains tax exemptions for payments made on or after May 2020 under the Troubles Permanent Disablement Payment Scheme. Mr Sunak unveiled a new £2bn Kickstart Scheme as a key plank of his “Plan for Jobs”. (24). This will enable people to move off the streets and support them to maintain a tenancy for the long term. The government will set out further plans for the Fund, including at the CSR. They will still be entitled to use red diesel for their heating use. The growth of every region and nation in the UK is important for boosting the economy and creating a strong and inclusive society. Facilities and equipment to support T levels – The government will provide £95 million for providers in England to invest in high quality facilities and industry-standard equipment to support the rollout of T levels. Wales has seen the largest reduction in its unemployment rate since 2010, of 5.6 percentage points. ↩, Times Higher Education World University Rankings 2020. This could result in an average saving of over £4,000 and 9/10 buyers could end up paying no stamp duty at all. Inflation fell through much of 2019, reaching 1.4% in the final quarter of the year, before increasing to 1.8% in January 2020. Vouchers worth up to £5,000 will be issued while poorer households could get up to £10,000 to make the upgrades, such as loft and wall insulation. On average, schools will see an increase of over 4% in funding per pupil compared to 2019‑20 budgets. ↩, ‘Call for evidence: the operation of Insurance Premium Tax’, HM Revenue & Customs, June 2019. Rough sleeping – The Budget confirms the £237 million announced by the Prime Minister for accommodation for up to 6,000 rough sleepers and provides a further £144 million for associated support services and £262 million for substance misuse treatment services which, when fully deployed, is expected to help more than 11,000 people a year. NHS operational capital – The government will protect the level of NHS operational capital investment in England by increasing the DHSC’s capital budget by £683 million in the new financial year 2020-21. The government will also legislate for a carbon emissions tax as an alternative carbon pricing policy and consult on the design of a tax in spring 2020. As a result, businesses will be able to employ four full-time employees on the National Living Wage without paying any employer National Insurance contributions (NICs). 5 These costs are additional capital spending in 2020-21. This includes measures to support public services, individuals and businesses. These will be legislated for in the forthcoming Finance Bill. The government is committed to levelling up investment across nations and regions to improve living standards nationally, as well as to address disparities in economic and social outcomes. The legislation also includes a new power which permits the government to confirm by secondary legislation when new social security benefits introduced by the UK government or any of the devolved administrations will be tax exempt. Developments in the management and measurement of the balance sheet: Completion of HM Treasury’s Balance Sheet Review discussed in Box 1.A in the summer provides an opportunity to consider its conclusions and options to improve the management of loans, guarantees, contingent liabilities, and wider balance sheet transactions. Business rates local newspaper office space discount – The £1,500 business rates discount for office space used by local newspapers in England will be extended for an additional five years until 31 March 2025. Business rates public lavatories relief – The government will bring forward legislation as soon as possible in this session to provide mandatory 100% business rates relief for standalone public lavatories in England from April 2020. The government therefore welcomes the NIC’s report ‘Strategic investment and public confidence’ and agrees with its primary finding that the UK’s system of economic regulation is working well, but may need updating in some areas to address 21st century challenges. The contracts governing these arrangements are often complex and require considerable expertise to manage effectively. Budget 2020 image copyright Getty Images The new chancellor must raise taxes in his first Budget or break the government's rules on borrowing, a leading economic think tank has warned. ↩, HM Treasury internal estimate using HMRC data. This will take place over the next decade via the Cabinet Office and its Places for Growth programme. The financing plans of the DMO include an initially unallocated portion of issuance through which gilts of any maturity or type may be issued, subject to prior notification. To ensure the civil service reflects the public it serves, the government is committed to moving 22,000 civil service roles out of central London within the next decade, the vast majority to the other regions and nations of the UK. The programme will support large-scale venture growth funds investing in life sciences companies and it will launch within a year. The government will also extend the Start-Up Loans Programme to ensure would-be entrepreneurs can access the finance they need. ‘Lowest–paid full–time workers’ defined as those at the fifth percentile of the earnings distribution. The budget is one of two statements given by the Chancellor of the Exchequer, with the Spring Statement being given the following year. Tackling COVID-19 is a global challenge. ↩, BMI Research (2016) United Kingdom Pharmaceuticals & Healthcare Report Q1 2016, p61. The people of the UK are rightly proud of its world-class public services. This will include advice on implementing a pro-competitive code of conduct for digital platforms with strategic market power. For example, 25 of the world’s top 100 medicines were discovered in the UK,[footnote 66] and the UK is the second largest expert contributor to the Intergovernmental Panel on Climate Change (IPCC). The relief will also be expanded to the leisure and hospitality sectors. Tobacco duty rates – Duty rates on all tobacco products will increase by RPI + 2% until the end of this Parliament. The NHS settlement, confirmed in January 2019, provided the largest cash increase in public services since the Second World War – an additional £34 billion per year by 2023-24. Details of the sources of all numerical references, including National Statistics, used in this section can be found in ‘Spring Budget 2020 data sources’. Most properties that are eligible for SBRR will have a lower rateable value, and so this will represent an even greater proportion of their annual rent. There is a current budget surplus of £11.7 billion in 2022-23, providing headroom against this rule. 1 Budgeting totals are shown including the Office for Budget Responsibility (, Note: This table details new financial transactions scored at this Budget. The government will also support the installation of heat pumps and biomass boilers by introducing a Low Carbon Heat Support Scheme. Small business grant funding – The government recognises that many small businesses pay little or no business rates because of Small Business Rate Relief (SBRR). Coronavirus Business Interruption Loan Scheme – The government will launch a new, temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, to support businesses to access bank lending and overdrafts. The Budget confirms a tax cut for 31 million working people with the increase in the National Insurance contributions (NICs) thresholds for employees and the self-employed, saving the typical employee around £104 and a typical self-employed person around £78 in 2020-21. Reviewing PFI contracts – The government has retired the PFI and PF2 models, but there are nearly 600 existing PFI contracts in England. 3 Prior to publication of the end-year outturn in April each year, this financing item will mainly comprise estimated revenue from coinage. Where flooding and coastal erosion is inevitable, further action is needed to ensure that communities can respond and recover more quickly. This target applies at all times. It will be undertaken by HM Treasury and will involve broad consultation with external experts from across the UK and internationally. The government will publish a consultation on the levy later this spring. This includes £12.2 billion for the Affordable Homes Programme and £400 million for ambitious Mayoral Combined Authorities and local areas to establish housing on brownfield land across the country. It offers similar performance to the Hisense H8G, but the 65 inch of this TV is cheaper, so it's a better choice if you want an option in a larger size and save some money. Net investment is expected to average 2.9% of GDP over 2020-21 to 2024-25 – below the 3% target – while the debt interest to revenue ratio remains below 6%. Gaming Duty – The government will legislate in Finance Bill 2020 to raise the Gross Gaming Yield (GGY) bandings for Gaming Duty in line with inflation. Consultation on the tax impact of the withdrawal of the London Inter-Bank Offered Rate (LIBOR) – The government will consult to ensure that where tax legislation makes reference to LIBOR it continues to operate effectively. This will create 50 million more GP surgery appointments a year. British Film Commission – The Budget allocates £4.8 million to expand the work of the British Film Commission to promote the UK as a destination of choice for studio space investment. Budget 2020 time: What time is the Budget? ↩, ‘Measuring Intangible Capital in the Public Sector’ SPINTAN, December 2016 www.spintan.net/spintan-data ↩, https://www.lepnetwork.net/growth-hubs/ ↩, HMRC analysis based on Pay As You Earn Real Time Information, the ONS Inter-Departmental Business Register and Open Geography Portal. (17). Disruption could include temporary absences from work and interruptions to global supply chains, both of which would constrain the UK’s productive capacity for a temporary period. 2 Negative numbers in the table represent a cost to the Exchequer. Increasing the UK’s use of clean energy is a vital part of reducing carbon emissions and putting the nation at the forefront of new innovative industries. As such, the OBR’s forecast includes an estimate of the impact on global growth, based on the assumption that the spread of the virus would be relatively limited. Unless somebody downstream decides to save rather than spend in which case it will become an asset again - with a balancing liability. We’ll send you a link to a feedback form. Earnings growth remains above inflation. By Louron Pratt 7th July 2020 3:39 pm 7th July 2020 5:04 pm Chancellor Rishi Sunak will deliver his mini-Budget speech at approximately 12.30 pm on Wednesday 8 July 2020. 1.1 This paper considers the Revised Budget, which covers progress in the first half of 2020/21 against the Emergency Budget and the 18-month period of the second half of 2020/21 and the full financial year 2021/22. The OECD has produced two scenarios. Neonatal leave and pay – The Budget announces a new entitlement to neonatal leave and pay for employees whose babies spend an extended period of time in neonatal care. Longer-term settlements have already been announced for the NHS and schools, which have confirmed budgets until 2023-24 and 2022-23 respectively. Unless stated otherwise, the decisions set out are ones which are announced at the Budget. Housing infrastructure allocations – The Budget confirms allocations from the Housing Infrastructure Fund totalling £1.1 billion for nine different areas, including Manchester, South Sunderland and South Lancaster. This information, which will be regularly updated as the situation develops, can be found at: The annual rate of Consumer Prices Index (CPI) inflation was 1.8% in 2019, down from 2.5% in 2018. It will also consider how project approval decisions are being made and provide clearer guidance and support to practitioners. The draft Q1 forecast budget for the year ending 31 March 2021 with high level forecast of 2021-22 and 2022-23 is attached as . The Budget will also invest over £900 million to ensure UK businesses are leading the way in high-potential technologies. Chart 1.11 which shows the change in government spending as a share of GDP over time, shows that tough decisions made in the aftermath of the financial crisis have restored the public finances to health and the government can now afford to invest more in public services and growing the economy. [footnote 82] The government wants to unlock more value from these assets and support innovation and productivity. Students will receive at least £5,000 a year, with up to £3,000 further financial support available for eligible students with childcare responsibilities, as well as those studying in regions and specialisms where Trusts find it difficult to recruit nurses. ↩, HM Treasury analysis of ONS Annual Survey of Hours and Earnings, 2015 results and 2019 results. This will invite ideas from business and the public for regulatory reform in order to ensure that regulation is sensible and proportionate now that the UK has left the EU, and that the interests of small businesses are taken into account. The Budget will also provide £68.5 million to toughen community sentences, including by increasing the number of offenders who are required to wear an electronic tag. Increasing housing supply is essential to creating a fairer, more affordable housing market and boosting productivity across the country. To ensure that the UK remains a dynamic and competitive regulatory environment, the government is launching a Reforming Regulation Initiative to collect ideas for regulatory reform, as well as implementing the recommendations of the Furman Review of digital competition, publishing further detail on the Financial Services Bill which will ensure that the UK maintains its world-leading regulatory standards and openess to international markets. 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