Tag: UK Government

Chancellor announces worker support package

The Chancellor has outlined an unprecedented package of measures to protect millions of people’s jobs and incomes as part of the national effort in response to coronavirus.

The support comes as the UK Government instructs entertainment and hospitality premises, like bars and restaurants, to close to limit spread of coronavirus.

A new Coronavirus Job Retention Scheme will be set up to help pay people’s wages. Employers will be able to contact HMRC for a grant to cover most of the wages of their workforce who remain on payroll but are temporarily not working during the coronavirus outbreak.

Any employer in the country- small or large, charitable or non-profit will be eligible for the scheme.

Universal Credit and tax credits will also be increased as part of an almost £7 billion welfare boost, as he outlined one of the most generous business and welfare packages by any government so far in response to Covid-19.

To ease cash flow pressures for UK VAT registered businesses, VAT bills from now until the end of June, will be deferred until the end of the tax year.

The Chancellor’s workers’ support package means:

  • UK workers of any employer who is placed on the Coronavirus Job Retention Scheme can keep their job, with the government paying up to 80% of a worker’s wages, up to a total of £2,500 per worker each month. These will be backdated to 1st March and will be initially open for 3 months, to be extended if necessary.
  • VAT payments due between now and the end of June will be deferred. No VAT registered business will have to make a VAT payment normally due with their VAT return to HMRC in that period. Income tax payments due in July 2020 under the Self Assessment system will be deferred to January 2021, benefitting up to 5.7m self-employed businesses.
  • Additionally, the Coronavirus Business Interruption Loan Scheme, launched at Budget, will now be interest free for twelve months.
  • The standard rate in Universal credit and Tax Credits will be increased by £20 a week for one year from April 6th, meaning claimants will be up to £1040 better off.
  • Nearly £1bn of additional support for renters, through increases in the generosity of housing benefit and Universal Credit. From April, Local Housing Allowance rates will pay for at least 30% of market rents in each area.

HMRC are working “night and day” to get the unprecedented Coronavirus Job Retention Scheme up and running and we expect the first grants to be paid within weeks.

Chancellor of the Exchequer Rishi Sunak said: “We continue to do everything possible to protect the public from coronavirus. We have been working round the clock so that we can today confirm an unprecedented package of support to protect people’s jobs and wages. And we’re strengthening our safety net at the same time.

“I said we would help individuals, businesses and the most vulnerable through this outbreak and I meant it. We will do whatever it takes in the weeks and months ahead.”

Work and Pensions Secretary Therese Coffey said: “We will do whatever it takes to protect the most vulnerable and get them through these unprecedented times, and the changes we are making to Universal Credit will help millions of people in most need.

“We are standing by those who rely on the welfare safety net as we work towards turning the tide on this disease and moving on together.”

Business Secretary, Alok Sharma, said: “We have committed to doing whatever it takes to support businesses and households through these unprecedented times, and today shows just how far we are willing to go.

“This intervention is unheard of in peacetime, but it is crucial we stand behind our businesses and those that rely on them for work and income.”

All measures announced yesterday across the business and welfare package are UK-wide.

In order to help delay the spread of Coronavirus, the Government instructed entertainment and hospitality businesses including pubs, bars and restaurants to close from last night.

This follows expert advice that more needs to be done in order tackle the spread of infection – following the call to action to isolate or socially distance. The measure, set to be reviewed on a monthly basis, will not affect supermarkets or retailers that supply fuel, medicines and other vital goods, which will continue to be open as normal for the public.

The following businesses have been asked to close:

  • Food and drink venues for consumption on-site, such as restaurants and cafes.
  • Drinking establishments, including pubs, bars, nightclubs.
  • Entertainment venues, including cinemas, theatres, concert halls, and bingo halls.
  • Museums and galleries.
  • Spas, wellness centres and massage parlours.
  • Casinos and betting shops.
  • All indoor leisure and sports facilities, including gyms.

This measure will not impact the relaxation of planning rules announced earlier this week which will allow pubs and restaurants to operate as hot food takeaways during the coronavirus outbreak.

The decision on closures will be reviewed on a monthly basis, and are being implemented across the whole of the UK in agreement with the devolved administrations. If needed, the government will enforce these measures by law.

Communities Secretary Rt Hon Robert Jenrick MP said: ”We will do whatever it takes to protect people across this country as we tackle the coronavirus outbreak. 

“While people have responded well to calls for social distancing and self-isolation, we must go further if we are to be able to stop the spread of the virus and protect the most vulnerable people in our society, and our NHS.

“That is why we are now telling entertainment and hospitality premises to close temporarily, and people to only travel if absolutely essential, to help protect each other from the further spread of the virus.

“We stand behind businesses and their employees and are offering an unprecedented range of support as we tackle this huge challenge together.”

More information about the measures announced for businesses by the Chancellor can be found here.

Responding to the Chancellor’s further economic announcements, John McDonnell MP, Labour’s Shadow Chancellor, said: “The Chancellor has shifted direction but unfortunately not far enough or fast enough.

“The Government must give people the economic security to stay at home by lifting the level of Statutory Sick Pay, but it appears that the Government hasn’t done that today. Sick pay is being left at a level that the Health Secretary said he could not live on, yet this is what the self-employed are being asked to get by on.

“The Chancellor’s wage protection plan sets out no obligation for employers to keep staff on, and no commitment to full wages being paid, with the cap on incomes meaning that many people will take a significant pay cut.

“This will also take some weeks to roll out at a time when wages need to be guaranteed more urgently.

“Other benefits, including for carers, are not being lifted adequately.

“The Chancellor said he would do whatever it takes, but he can and should go further – and we will keep working constructively with Government to ensure the best possible response to the Coronavirus crisis.”

A spokesperson for the Scottish Licensed Trade Association said: “These extra unprecedented measures are very much welcomed and are a life saver for Scotland’s pubs and bars and the hospitality industry in general. 

“Without all the measures introduced to help our industry, many business would have been forced to close and staff would have lost their jobs and for many these actions would have been permanent.

“Considering our industry was on the edge of a precipice only a week or so ago, the future, for both businesses and staff is now more secure than anyone could have ever foreseen.”

The initiative has also been welcomed by the country’s biggest trade union.

Unite general secretary Len McCluskey said: “This is the package of measures that trade unions like Unite have been pressing for as the most effective way to stave off mass hardship and the conditions for a depression.  

“We recognise that these are huge decisions for any government, and especially for a Conservative government, but they have listened to the calls for action and have acted appropriately. Rishi Sunak’s wage support measures are a historic first for this country, but are bold and very much necessary.

“The key to any wage support programme is that it needs to be simple, straightforward and above all fast. This is the only way to put money into the pockets of the millions who see their livelihoods hanging by a thread.

“This will definitely be some relief amid all the fear in households across the UK this evening. Never before has the country faced a crisis of this nature. People who were only days ago in secure work are now worried sick about putting food on the table in light of the coronavirus pandemic.

“The chancellor has done the right thing and we look forward to working further with him in the coming days to get this money into the hands of those most in need.”

 

Who are the Key Workers?

What is a key worker? The UK Government gives the following information:

If your work is critical to the COVID-19 response, or you work in one of the critical sectors listed below, and you cannot keep your child safe at home then your children will be prioritised for education provision:

Health and social care

This includes but is not limited to doctors, nurses, midwives, paramedics, social workers, care workers, and other frontline health and social care staff including volunteers; the support and specialist staff required to maintain the UK’s health and social care sector; those working as part of the health and social care supply chain, including producers and distributers of medicines and medical and personal protective equipment.

Education and childcare

This includes childcare, support and teaching staff, social workers and those specialist education professionals who must remain active during the COVID-19 response to deliver this approach.

Key public services

This includes those essential to the running of the justice system, religious staff, charities and workers delivering key frontline services, those responsible for the management of the deceased, and journalists and broadcasters who are providing public service broadcasting.

Local and national government

This only includes those administrative occupations essential to the effective delivery of the COVID-19 response, or delivering essential public services, such as the payment of benefits, including in government agencies and arms length bodies.

Food and other necessary goods

This includes those involved in food production, processing, distribution, sale and delivery, as well as those essential to the provision of other key goods (for example hygienic and veterinary medicines).

Public safety and national security

This includes police and support staff, Ministry of Defence civilians, contractor and armed forces personnel (those critical to the delivery of key defence and national security outputs and essential to the response to the COVID-19 pandemic), fire and rescue service employees (including support staff), National Crime Agency staff, those maintaining border security, prison and probation staff and other national security roles, including those overseas.

Transport

This includes those who will keep the air, water, road and rail passenger and freight transport modes operating during the COVID-19 response, including those working on transport systems through which supply chains pass.

Utilities, communication and financial services

This includes staff needed for essential financial services provision (including but not limited to workers in banks, building societies and financial market infrastructure), the oil, gas, electricity and water sectors (including sewerage), information technology and data infrastructure sector and primary industry supplies to continue during the COVID-19 response, as well as key staff working in the civil nuclear, chemicals, telecommunications (including but not limited to network operations, field engineering, call centre staff, IT and data infrastructure, 999 and 111 critical services), postal services and delivery, payments providers and waste disposal sectors.

If workers think they fall within the critical categories above, they should confirm with their employer that, based on their business continuity arrangements, their specific role is necessary for the continuation of this essential public service.

If your school is closed, then please contact your local authority, who will seek to redirect you to a local school in your area that your child, or children, can attend.

We are grateful for the work of teachers and workers in educational settings for continuing to provide for the children of the other critical workers of our country. It is an essential part of our national effort to combat this disease.

Reduced rail timetable from Monday

UK Government has worked with rail operators to agree a reduction in rail service levels to help tackle the spread of COVID-19.

  • government and rail operators across the UK agree reductions in service levels following reduced passenger demand as people change their travel patterns to help tackle spread of COVID-19
  • move will keep core services running to ensure those who need to get to work, including emergency services and NHS can continue to do so
  • joint decision also enables important freight services to continue, ensuring sector can support movement of goods and supplies while passenger services continue for those most at need

The government and the UK rail industry have agreed a plan that will see a gradual reduction in train services across the country to reflect lower passenger demand, while keeping vital rail services running.

Operators will continue to run core services ensuring people remain able to get to work, can travel to access medical appointments and the flow of goods continues across the UK.

The move reflects a decrease in passenger demand as people stop all unnecessary travel and decrease non-essential social contact in line with government advice to help stop the spread of the virus. Running reduced services will also help protect the welfare of frontline railway staff essential for day-to-day operations.

Rail services will be reduced from Monday 23rd March and kept under review, with operators providing clear communications to ensure passengers who need to travel are well-informed of the changes.

There will be a gradual move towards introducing reduced service levels on wide parts of the network over the longer term. To minimise disruption, services will be reduced progressively across the network over the coming days.

The plan will also ensure key freight services can continue to move around the country, allowing vital goods to continue to be shipped where needed.

Secretary of State for Transport Grant Shapps, said: “We are taking decisive action to protect the public which means reducing travel for the time being, whilst still ensuring keyworker heroes can get to their jobs to keep this nation running.

“For passengers in crucial roles, including essential workers in our emergency services and NHS, alongside people who need to attend medical appointments or care for loved ones, these changes protect the services they rely on.

“Our railways are at the heart of this country’s transport links, and we continue to work closely with the industry to develop measures that protects operators in these challenging times.”

Robert Nisbet, Director of Nations and Regions at the Rail Delivery Group, which represents train operators and Network Rail, said: “At a time of extraordinary national challenge, the measures rail companies are putting in place with government will preserve services so that we can continue to get key workers to where they need to be, deliver food to supermarkets and get fuel to power stations.

“This is not a decision we take lightly. However, implementing these measures now will mean that we can continue to operate trains over a prolonged period with fewer railway workers, who like so many others are to be commended for putting the needs of the country first, and whose safety remains front of mind.

“We are monitoring demand closely and should it become necessary in the weeks ahead, we will adjust services and timetables to ensure they’re being delivered to best effect where they’re needed most, in accordance with our plan. We would advise anybody who has to travel to check the time of their train on the National Rail Enquiries website before they set out.”

The government has been working together with the operators, freight groups and trade unions to ensure there is a collective focus during this crucial time and to ensure all areas of the industry and its people have the support needed.

Similar measures have been agreed by the Scottish and Welsh governments to ensure this package is implemented across operators in Scotland and Wales. Transport for London has already announced a similar reduction in usual services.

Scottish Transport Secretary Michael Matheson said: “Following discussions with rail industry partners, passenger services will see a reduction as we continue to tackle the coronavirus.

“We know that rail provides an important service in moving passengers and goods around the country. However, we will reach a point where travel is reduced to essential journeys only.

“Moving to a reduced timetable will not only help ensure some passenger services continue to run, it will enable freight to be prioritised so goods and emergency supplies such as medicines can be moved around the country.

“Constructive dialogue has been held with rail unions with discussion focused on protecting rail staff while they make a significant contribution to keeping passengers and goods moving as much as possible in these challenging circumstances.”

 

Supermarkets pledge to work together to feed the country

The UK government is temporarily relaxing elements of competition law as part of a package of measures to allow supermarkets to work together to feed the nation.

The move allows retailers to share data with each other on stock levels, cooperate to keep shops open, or share distribution depots and delivery vans. It would also allow retailers to pool staff with one another to help meet demand.

The Environment Secretary George Eustice confirmed elements of the law would be temporarily waived in a meeting this afternoon with chief executives from the UK’s leading supermarkets and food industry representatives.

The government has also temporarily relaxed rules around drivers’ hours, so retailers can deliver more food to stores, and is waiving the 5p plastic bag charge for online purchases to speed up deliveries.

The support for supermarkets comes as the government and retailers continue to urge people to shop considerately and look out for their friends, family and neighbours.

Environment Secretary George Eustice said: “We’ve listened to the powerful arguments of our leading supermarkets and will do whatever it takes to help them feed the nation.

“By relaxing elements of competition laws temporarily, our retailers can work together on their contingency plans and share the resources they need with each other during these unprecedented circumstances.

“We welcome the measures supermarkets are already taking to keep shelves stocked and supply chains resilient, and will continue to support them with their response to coronavirus.

Business Secretary Alok Sharma said: “In these extraordinary and challenging times it is important that we remove barriers to our supermarkets working together to serve customers, particularly those who are elderly, ill or vulnerable in all parts of the UK.

“The temporary relaxation of competition law for the food sector will allow supermarkets to cooperate with each other to keep their shops staffed, their shelves stocked, and the nation fed.

“I am clear that we will continue to do whatever it takes to support business through this extremely difficult period.”

Andrew Opie, Director of Food & Sustainability at the British Retail Consortium, said: “We welcome this important decision by the government to give retailers greater flexibility to work together to tackle the challenges posed by coronavirus.

“Retailers have been working hard to ensure shelves are stocked and this is an exceptional step taken by government to help retailers and their suppliers cope with problems that might be caused by widescale absences across the supply chain.

“This is a short term measure, in the spirit of working together, and will allow retailers to agree common specifications for products to bolster food production, and co-ordinate certain operations to ensure customers anywhere in the UK have access to the essential items they need.”

Legislation will be laid shortly to amend elements of the Competition Act 1998, which prevents certain types of anti-competitive behaviour. It can be relaxed in exceptional circumstances.

This will be a specific, temporary relaxation to enable retailers to work together for the sole purpose of feeding the nation during these unprecedented circumstances. It will not allow any activity that does not meet this requirement.

The announcement comes as the government confirmed yesterday it would temporarily relax drivers’ hours rules to allow supermarket delivery drivers to meet the increased demand for home deliveries.

The change to GB drivers’ hours rules, which will come into effect today (Friday 20 March), will mean delivery drivers are able to work slightly longer hours – helping supermarkets offer additional delivery slots, which is particularly important for vulnerable people and those staying at home during the COVID-19 outbreak. It will also provide extra capacity if drivers are unwell.

The move comes after the Government temporarily relaxed the EU drivers’ hours rules for store deliveries, helping move food and other essentials more quickly so that shelves can be stocked-up.

Transport Secretary, Grant Shapps said: “We know supermarkets have seen unprecedented demand in light of COVID-19. We’re relaxing the GB drivers’ hours rules so that supermarkets can complete more home deliveries – which is especially important for vulnerable people at this time.

“But driver welfare is of course key and we will be working closely with employers to make sure the safety of their drivers and other people on the road is protected.”

On his call with retailers today, the Environment Secretary also confirmed the government will temporarily relax the single-use carrier bag charge for online deliveries in England, to speed up deliveries and minimise any cross-contamination from reusing crates. This will come into force on Saturday 21 March. The charge remains in-place for in-store purchases.

This follows a series of measures the government has introduced to support the food industry’s response to coronavirus, including working with local authorities to extend the hours that deliveries can be made to supermarkets to ensure stores are replenished quickly and extending drivers’ hours to speed up deliveries.

The UK’s food supply chain remains resilient and the Environment Secretary continues to meet regularly with representatives of the food industry to ensure people can get the food and groceries they need.

Government agrees measures with energy industry to support vulnerable people

The UK Government has agreed new emergency measures with the energy industry to protect the domestic energy supply of those most in need during the disruption caused by COVID-19.

From today, customers with pre-payment meters who may not be able to add credit can speak to their supplier about options to keep them supplied. This will benefit over 4 million customers.

This could include nominating a third party for credit top ups, having a discretionary fund added to their credit, or being sent a pre-loaded top up card so that their supply is not interrupted.

More broadly, any energy customer in financial distress will also be supported by their supplier, which could include debt repayments and bill payments being reassessed, reduced or paused where necessary, while disconnection of credit meters will be completely suspended.

Secretary of State for Business and Energy, Alok Sharma, said: “While friends and family will play a role in helping people impacted by the Coronavirus, we recognise there will be many customers who will need additional support and reassurance, particularly those who are financially impacted or in vulnerable circumstances.

“The government has committed to do whatever it takes to get our nation through the impacts of this coronavirus pandemic. Today those most in need can rest assured that a secure supply of energy will continue to flow into their homes during this difficult time.”

The government and energy industry have agreed to prioritise those existing customers most in need, while identifying customers whose circumstances may have changed as a direct or indirect result of COVID-19.

Chief Executive of Citizens Advice, Dame Gillian Guy, said: “This is an uncertain time for many people. Energy suppliers need to play their part by communicating clearly and supporting their customers as much as possible.

“Keeping people on supply, making sure they have warm homes and don’t face additional financial or other stresses about their energy supply will be essential.

“Suppliers will need to put in place support measures for people on prepayment meters, people and families who need to self-isolate or take steps to reduce social contact, and people who may otherwise be in vulnerable situations.”

The measures set out and agreed will be implemented immediately by energy suppliers to alleviate pressure on energy customers.

Chief executive of Energy UK, Audrey Gallacher, said: “As providers of essential services and critical infrastructure, the energy industry has well-practised contingency plans in order to ensure the delivery of services and is working closely with the Government on a daily basis to ensure there is no disruption to the generation and supply of energy to customers during these extraordinary circumstances.

“The sector is very conscious of the potential consequences for customers confined to their homes for prolonged periods and in particular those customers in vulnerable circumstances or on prepayment meters who may need additional help. Suppliers will be doing all they can to identify such customers and provide additional support wherever possible.”

Ofgem will continue to ensure suppliers meet their regulatory obligations. However the government also recognises this will be a challenging time for many supply businesses.

The Chancellor has this week set out a package of targeted measures to support businesses through this period of disruption caused by COVID-19. This includes £330 billion for companies to access loans, a business rates holiday, and help for small firms without insurance. In addition, a new temporary Coronavirus Business Interruption Loan Scheme is to be launched in days to support businesses access £1 billion of additional bank lending.

Chief Executive of Energy Networks Association, David Smith, said: “These are unprecedented times but the energy industry is working hard to keep gas and electricity flowing, look after our vulnerable customers and keep customers and staff safe.

“The UK’s electricity and gas network is one of the most reliable in the world and over 36,000 employees are working flat out to continue to provide a safe and reliable supply of energy during this time.”

Customers that are unable to top up their pre-payment meter are advised to contact their supplier immediately to discuss how they can be kept on supply.

Ofgem recommends consumers leave the meter box unlocked if they need someone else to top up the meter. Smart meter customers should be able to top-up remotely, such as by phone, mobile application or online.

Natalie Hitchins, Head of Homes Products and Services, Which?, said: “Hardup energy customers will breathe a sigh of relief that these new emergency measures will protect them from steep bills and losing their energy supply during these uncertain times.

“If you are worried about your ability to pay your energy bill because of the impact of coronavirus on your circumstances, it’s important to talk to your supplier as soon as possible to discuss your situation and find out what kind of support they can offer you.”

The UK government is working in lock step with the Devolved Administrations, World Health Organization, and international partners to keep the whole of the UK safe. Its approach is clinically led, based on the expert advice of the UK’s Chief Medical Officer for England, the NHS and Public Health England.

Face-to-face health assessments for benefits suspended

Face-to-face assessments for all sickness and disability benefits will be suspended for the next 3 months, the government announced yesterday.

The temporary move, effective today, is being taken as a precautionary measure to protect vulnerable people from unnecessary risk of exposure to coronavirus as the country’s response ramps up in the ‘delay’ phase. The DWP says they will ensure those who are entitled to a benefit continue to receive support, and that new claimants are able to access the safety net.

It affects claimants of Personal Independence Payment (PIP), those on Employment and Support Allowance (ESA) and some on Universal Credit, and recipients of Industrial Injuries Disablement Benefit.

The suspension of face-to-face assessments also covers new claims to those benefits.

Work and Pensions Secretary Thérèse Coffey said: “As we move into the next phase of our response to coronavirus, it is right we take steps to protect those with health problems.

“Temporarily suspending face-to-face assessments for sickness and disability benefits will allow us to ensure we continue to provide a safety net for those in need, while removing unnecessary risk of exposure to this disease.”

Anyone who has a face-to-face assessment appointment scheduled from today – Tuesday 17 March – onwards does not need to attend and will be contacted to discuss next steps and alternative arrangements, which could involve either telephone or paper-based assessments. DWP expect this measure will be in effect for the next 3 months but will regularly review the position in line with Public Health advice.

No further action is required by any claimant as a result of this change. They will be contacted with advice on next steps.

DWP continues to accept new claims for all benefits. Anyone already receiving PIP, ESA, Universal Credit or Industrial Injuries Disablement Benefit, will continue to receive their current payments as normal while alternative arrangements are put in place to review or reassess their claim.

Suspending face-to-face health assessments is a precautionary measure which reflects the Prime Minister’s decision to trigger the ‘delay’ phase. It is important to note that this change does not affect or change any existing public health advice.

Read the current NHS guidelines on coronavirus, including advice on those who should stay at home.

New guidance for households with possible COVID-19 infection

New guidance to stay at home for 14 days if someone in your household has symptoms of COVID-19 is the focus of the next stage of a public awareness campaign launched by Health and Social Care Secretary Matt Hancock today.

The new guidance will set out that individuals will still be asked to self-isolate for 7 days from the onset of COVID-19 symptoms but any individuals in the household will now be asked to self-isolate for 14 days from that moment as well.

If other members of your household develop symptoms, however mild, at any time during the 14 days, they must not leave the home for 7 days from when symptoms started.

The new phase of the campaign will build on the existing TV, radio, online, digital and billboard adverts currently visible all over the country. These reinforce the importance of washing your hands more often and for 20 seconds, and ask people to self-isolate for 7 days if they develop a high temperature or a new continuous cough, however mild.

The UK Government has taken the further measure of asking whole households to isolate because it is likely that people living with others will infect each other or be infected already. Staying at home for 14 days will greatly reduce the overall amount of infection the household could pass on to others in the community.

The Prime Minister also today set out a number of social distancing measures to reduce the risk of infection from the spread of coronavirus. For those who remain well, are under 70 or do not have an underlying health condition, they are advised to limit their social contact where possible, including using less public transport, working at home and considering not going to pubs, restaurants, theatres and bars.

For those who are over 70, have an underlying health condition or are pregnant, they are strongly advised against these activities and to significantly limit face-to-face interaction with friends and family if possible.

The government’s public awareness campaign offers clear, practical advice so people can play their part in preventing and slowing the spread of the virus.

The most important thing individuals can do to protect themselves remains washing their hands more often, for at least 20 seconds, with soap and water. Make sure you cough or sneeze into a tissue, put it in a bin and wash your hands.

The awareness campaign also reiterates the importance of seeking help online by visiting NHS.UK/coronavirus to check your symptoms and follow the medical advice, rather than visiting your GP. It also urges people with any symptoms to avoid contact with older and more vulnerable people.

Only if symptoms become worse should people use the NHS 111 service. To ensure the phone service is readily available to those who need it, where possible people should use the 111 website rather than calling.

Earlier this month, the Prime Minister published a ‘battle plan’ for tackling the disease in the UK, which sets out plans for a range of scenarios. Last week, the Prime Minister confirmed the UK has moved into the second stage of this plan, the ‘delay’ phase.

Health and Social Care Secretary Matt Hancock (above,left) said: “Coronavirus is the biggest public health crisis we have faced in a generation, and we will do whatever is necessary to protect our elderly and most vulnerable people and keep the public safe.

“This is an unprecedented situation and it’s so important for each of us to rally together and do our bit to protect ourselves and each other, as well as our NHS, from this disease.

“Washing hands regularly for 20 seconds or more remains the single most important thing each of us can do, but we now also need to ask everyone in a household to stay at home if anyone in their home shows symptoms.

“Combating this virus will require a huge national effort. We must do all we can to save lives, protect the NHS and keep the most vulnerable people in our society safe.”

PM leads drive to defeat Coronavirus

  • New daily press conferences to keep public informed on how to protect themselves
  • Meetings with manufacturing industry and calls with international leaders will drive forward efforts to curb the virus
  • UK leading international efforts to develop a coronavirus vaccine and produce the medical equipment needed to help people recover

From today, daily press conferences will be hosted by the Prime Minister and senior Ministers on the coronavirus pandemic, supported by scientific and medical experts including the Chief Medical Office and Chief Scientific Adviser.

The press conferences form part of the government’s commitment to clarity and transparency in order to ensure British people are fully informed about the steps they can take to protect themselves and others.

A Downing Street spokesperson said: “The Prime Minister and this Government are committed to keeping the public informed every step of the way about what we’re doing to fight the spread of coronavirus, when we’re doing it and why we’re doing it. At all times we will be led by the science to bring forward the right responses at the right time to this global pandemic.”

Boris Johnson will speak to British manufacturers including Unipart Group this morning to ask them to support production of essential medical equipment for the NHS. He will stress the vital role of Britain’s manufacturers in preparing the country for a significant spread of coronavirus and call on them to step up and support the nationwide effort to fight the virus.

A Downing Street spokesperson said: “Preparing for the spread of the coronavirus outbreak is a national priority and we’re calling on the manufacturing industry and all those with relevant expertise who might be able to help to come together to help the country tackle this national crisis.

“We need to step up production of vital equipment such as ventilators so that we can all help the most vulnerable, and we need businesses to come to us and help in this national effort.”

This afternoon the Prime Minister will also chair another meeting of the COBR emergency committee to coordinate the government’s ongoing response to coronavirus. The meeting is expected to include discussion on current modelling of the outbreak and next steps on plans around shielding elderly and vulnerable people, household isolation and mass gatherings.

Following his calls over the last few days with world leaders – including President Trump, Chancellor Merkel, Prime Minister Abe, Prime Minister Conte and Crown Prince Mohammad bin Salman – the Prime Minister will continue his engagement with international partners to ensure a coordinated global response to the outbreak.

Tomorrow all G7 leaders will participate in a call to discuss international efforts. The Prime Minister will encourage fellow leaders to support the World Health Organization response, provide funding and expertise for research that can ensure rapid progress to develop a vaccine, and drive forward support to mitigate the economic impacts of the crisis.

In the past few weeks the UK has provided up to £150 million to the IMF’s Catastrophe Containment and Relief Trust to support the economies of developing countries affected by the virus, £50 million for the Centre for Epidemic Preparedness Innovations which is leading the global research and development of a vaccine, £25 million for further research into the virus including to develop a rapid test, and £10 million for the WHO’s flash appeal for the outbreak.

 

Coronavirus: “the worst public health crisis for a generation”

OUT OF CONTAINMENT, INTO DELAY PHASE

The UK Government has announced that we are moving out of the contain phase and into delay, in response to the ongoing coronavirus (COVID-19) outbreak.

The UK Chief Medical Officers have now raised the risk to the UK from moderate to high.

As per the current advice, the most important thing individuals can do to protect themselves remains washing their hands more often, for at least 20 seconds, with soap and water. Make sure you cough or sneeze into a tissue, put it in a bin and wash your hands.

The UK Government is asking anyone who shows certain symptoms to self-isolate for 7 days, regardless of whether they have travelled to affected areas. This means we want people to stay at home and avoid all but essential contact with others for 7 days from the point of displaying mild symptoms, to slow the spread of infection.

The symptoms are: * A high temperature (37.8 degrees and above) * A new, continuous cough

You do not need to call NHS 111 to go into self-isolation. If your symptoms worsen during home isolation or are no better after 7 days contact NHS 111 online at 111.nhs.uk. If you have no internet access, you should call NHS 111. For a medical emergency dial 999.

In the coming weeks, we will be introducing further social distancing measures for older and vulnerable people, asking them to self-isolate regardless of symptoms.

If we introduce this next stage too early, the measures will not protect us at the time of greatest risk but could have a huge social impact. We need to time this properly, continue to do the right thing at the right time, so we get the maximum effect for delaying the virus. We will clearly announce when we ask the public to move to this next stage.

Our decisions are based on careful modelling. We will only introduce measures that are supported by clinical and scientific evidence.

Prime Minister Boris Johnson issued the following statement yesterday:

“I’ve just chaired a meeting of the government’s emergency committee including ministers from Scotland, Wales and Northern Ireland.

“And it’s clear that coronavirus, COVID-19, continues and will continue to spread across the world and our country over the next few months. We’ve done what can be done to contain this disease and this has bought us valuable time.

“But it is now a global pandemic.

“And the number of cases will rise sharply and indeed the true number of cases is higher – perhaps much higher – than the number of cases we have so far confirmed with tests.

“I’ve got to be clear, we’ve all got to be clear, that this is the worst public health crisis for a generation.

“Some people compare it to seasonal flu. Alas, that is not right. Owing to the lack of immunity, this disease is more dangerous.

“And it’s going to spread further and I must level with you, level with the British public, many more families are going to lose loved ones before their time. And the Chief Scientific Adviser will set out the best information we have on that in a moment.

“But as we’ve said over the last few weeks, we have a clear plan that we are now working through. And we are now moving to the next phase in that plan.

“Because this is now not just to attempt to contain the disease as far as possible, but to delay its spread and thereby minimise the suffering. If we delay the peak even by a few weeks, then our NHS will be in a stronger state as the weather improves and fewer people suffer from normal respiratory diseases, more beds are available and we’ll have more time for medical research.

“We can also act to stretch the peak of the disease over a longer period so that our society is better able to cope.

“The Chief Medical Officer will set out our lines of defence. We have to deploy these at the right time to maximise their effect. The most important task will be to protect our elderly and most vulnerable people during the peak weeks when there is the maximum risk of exposure to the disease and when the NHS will be under the most pressure. So the most dangerous period is not now but some weeks away depending on how fast it spreads.

“Today therefore we are moving forward with our plan. From tomorrow, (Friday) if you have coronavirus symptoms, however mild – either a new continuous cough or a high temperature – then you should stay at home for at least 7 days to protect others and help slow the spread of the disease.

“We advise all those over 70 and those with serious medical conditions against going on cruises and we advise against international school trips.

“At some point in the next few weeks, we are likely to go further and if someone in a household has those symptoms, we will be asking everyone in the household to stay at home. We are not introducing this yet for reasons Sir Patrick will explain, but I want to signal now that this is coming down the track.

“We are considering the question of banning major public events such as sporting fixtures. The scientific advice as we’ve said over the last couple of weeks is that banning such events will have little effect on the spread.

“But there is also the issue of the burden that such events can place on public services. So we’re discussing these issues with colleagues in all parts of the United Kingdom and will have more to say shortly about the timing of further action in that respect.

“At all stages, we have been guided by the science, and we will do the right thing at the right time.

“We are not – repeat not – closing schools now. The scientific advice is that this could do more harm than good at this time. But we are of course keeping this under review and this again may change as the disease spreads. Schools should only close if they are specifically advised to do so. And that remains our advice.

“There is no escaping the reality that these measures will cause severe disruption across our country for many months.

“The best scientific advice is that this will help us slow the disease and save lives. There will be detailed information available on the NHS website and from 111 online. But I want to stress something that is very important in the wake of what we’re saying this afternoon – I urge people, who think in view of what we’re saying about their potential symptoms that they should stay at home, not to call 111 but to use the internet for information if they can.

“I also want at this stage to speak directly to older people. Because this disease is particularly dangerous for you, for older people, even though for the vast majority this will be a mild to moderate illness, I know that many people will be very worried. And I think we should all be thinking about our elderly relatives, the more vulnerable members of their family, our neighbours, and everything we can do to protect them over the next few months.

“We’re going to need to mobilise millions of people to help and support each other. And I just want to you to know that the government will do all we can to help you and your family during this period. We’re not just going to be, as you saw yesterday, supporting the economy during this period, we will be providing money and many other forms of support, and helping communities to support each other.

“And as we have done over the last few weeks, we will continue to provide, as soon as we have it, as much clear scientific and medical information as we can.

“So I’d like to end by repeating the two important messages, with which you will have become familiar – it is still vital, perhaps more vital than ever – that we remember to wash our hands.

“And lastly of course even if things seem tough now, just to remember, that we will get through this, this country will get through this epidemic, just as it has got through many tougher experiences before if we look out for each other and commit wholeheartedly to a full national effort.”

The Scottish Government has also reacted to the changing situation by taking action to protect the resilience of critical emergency services during the coronavirus outbreak.

From Monday all large gatherings above 500 people with the potential to impact the emergency services should be cancelled to prioritise the Covid-19 (coronavirus) outbreak.

The First Minister Nicola Sturgeon has announced the action in Scotland to protect the resilience of the emergency services until the impact of the virus has lessened substantially.

Managing large events safely can require a significant commitment and planning from the Police, Fire and Ambulance Services, as well as others such as the voluntary sector.

At a time when there is severe pressure on emergency and public services as a result of the virus, cancelling such large events will free up vital resources to focus on dealing with the outbreak.

Guidance on how this action will impact events will be produced before Monday.

The First Minister said: “Event organisers should take action now to help our emergency services deal with the scale of the challenge we face with coronavirus.

“Our frontline services are doing a fantastic job but they are already under pressure, which will increase as the number of cases in Scotland rises.

“The emergency services are well prepared to deal with this outbreak but mass gatherings, such as large football and rugby matches as well as concerts, can have a significant impact on emergency service resources.

“Removing unnecessary burdens on our frontline workers is the right thing to do so they can prioritise their response to where it is needed most.”

City of Edinburgh Council Leader Adam McVey also outlined emergency funding to support the Council’s response to the Coronavirus.

Cllr McVey said: “We and our partners are working round the clock to ensure Edinburgh is ready for however the Coronavirus situation develops in the days, weeks and months ahead.

“It’s a worrying and uncertain time for everyone and today we’ve confirmed an immediate allocation of £2m to reinforce the proactive and preventative measures we’ll need to take.

“Our focus is on minimising the impact of the virus on our communities and Council services, with a particular emphasis on health and social care.

“This is a rapidly evolving situation and we’ll continue to send relevant information to staff, schools and on our dedicated web page. We’ll also continue to signpost official guidance in areas like travel advice and what we can all do to protect ourselves and others.

“This is a very challenging time for the city, and the world, but if we all pull together I know we will get through it.”

Chancellor delivers Coronavirus Budget

The Chancellor yesterday set out a £12 billion action plan in response to the economic impact of the coronavirus (COVID-19) outbreak, as part of a Budget that ‘delivers historic levels of public investment, levels up the country and lays the foundations for a decade of growth’.

Chancellor of the Exchequer Rishi Sunak said Britain will rise to the challenge of COVID-19, with a package of measures to support public services, individuals and businesses that may be affected by the outbreak.

In addition to responding to the immediate impact of COVID-19, the Chancellor pledged to put hardworking people first, put more money in their pocket, invest a record amount in infrastructure, boost public services, back business and set out a vision for a greener future.

A record half a trillion pounds (£640 billion) will be invested in Britain’s roads, railways and digital networks to give us the infrastructure that will support economic growth.

The Budget also provides billions of pounds to support our world-class public services; with funding for 50,000 more nurses and 50 million more GP surgery appointments a year.

Millions of families will have more cash to spend thanks to tax cuts through an increase in National Insurance thresholds and a cash boost to the National Living Wage (NLW). The Budget also takes action to support businesses of all sizes and accelerates the UK’s progress towards a greener economy. The Comprehensive Spending Review, which will set out the government’s detailed spending plans for this Parliament, was also launched today and will conclude in July.

Delivering the budget in Parliament Chancellor of the Exchequer Rishi Sunak said: “This Budget responds, at scale, to the immediate threat of Coronavirus and it reports on an economy whose foundations are strong. It is a Budget that provides for security today.

“This is a Budget that will deliver on our promises to the British people and it is the budget of a government that gets things done.

“We’re at the beginning of a new era in this country. We have the freedom and the resource to decide our own future.”

COVID-19

The Chancellor pledged to do ‘whatever it takes’ to support the economy through the disruption caused by COVID-19 with a £12 billion package of targeted measures. It included a £5 billion emergency response fund to support the NHS and other public services, £40 million of new funding for rapid research into COVID-19 and a commitment of up to £150 million to the International Monetary Fund’s Catastrophe Containment and Relief Trust.

To support people affected, the Chancellor announced the government would be extending Statutory Sick Pay (SSP) for all those who are advised to self-isolate and their carers – even if they haven’t yet presented with symptoms. Statutory Sick Pay costs for businesses with fewer than 250 employees will be met by the government in full for up to 14 days.

Rishi Sunak also set out plans to support the self-employed, those earning below the Lower Earnings Limit of £118 per week and a new £500 million Hardship Fund to directly support vulnerable people. The government will also increase the Business Rates retail discount to 100% for one year and expand it to the leisure and hospitality sectors.

Public services

By the end of the Parliament, day to day spending on public services will be £100 billion higher in cash terms than it is today. This Budget commits more than £6 billion of new funding in this Parliament to support the NHS, including to create 50m more GP surgery appointments, ensure there are 50,000 more nurses. The NHS Settlement provided the largest cash increase in public services since the Second World War – an additional £33.9 billion per year by 2024.

Levelling up and getting Britain Building

Billions of investment will be provided across the length and breadth of the country to support communities poorly served by old roads, communications and housing:

  • more than £27 billion will be spent on upgrading strategic roads and £2.5 billion will be spent on fixing potholes
  • £5 billion will go towards the rollout of gigabit-capable broadband in the hardest to reach areas
  • following the recent floods, which devastated parts of the UK, the Chancellor has pledged a record £5.2 billion over six years for flood defences

Cost of living

The Chancellor also put more money into the pockets of 31 million working people thanks to National Insurance Contribution thresholds increasing to £9,500, saving the typical employee around £104 a year from April, while the National Living Wage will increase to £8.72. This is on top a freeze in Fuel Duty, for the tenth consecutive year, and a freeze in duty rates for beer, cider and spirits, while the ‘Tampon Tax’ will be scrapped.

Backing Business

From April, small businesses will benefit from an increase to the Employment Allowance, reducing their employer National Insurance bills by £850 on average and there will be fundamental review of business rates.

Greener economy

To accelerate the UK’s progress towards net zero carbon emissions by 2050 and protect the environment for future generations, the Chancellor announced £500 million for electric car charging infrastructure, to ensure drivers are never further than 30 miles away from a rapid charger. Tree planting in England will increase by 600% and to tackle the scourge of single-use plastics, a consultation will be launched on introducing a Plastic Packaging Tax.

Support for the regions and nations

The Chancellor has also pledged to level up all parts of the UK, with measures to spread opportunity and ensuring everyone benefits from growth. He announced the West Yorkshire Devolution Deal, which will help the region boom through the creation of a Mayoral Combined Authority, while a government economic decision-making hub will be created in the North of England.

As a result of the budget:

  • the Scottish Government will benefit from a £640 million funding boost
  • the Welsh Government a £360 million funding boost
  • the Northern Ireland Executive a £210m funding boost

Scottish Secretary Alister Jack said: “This is a great budget for Scotland. Decisions taken by the UK Government over the last year will deliver an almost £2 billion funding boost for the Scottish Government.

“People and businesses right across Scotland will see the benefits – more than £5 billion for broadband and 4G connectivity, an increase in the national living wage, £22 billion for research and development across the UK, and a freeze in fuel duty.

“The Scotch whisky industry gets a welcome boost, with a freeze on spirits and a review of alcohol duty, and £10 million help to develop green technology. We will also invest £1 million in promoting Scottish produce to overseas markets.

“We will continue our extensive investment in growth deals across Scotland, now at almost £1.5 billion, with confirmation of £25 million UK Government funding for Argyll and Bute. Every part of Scotland will be covered by growth deals, with investment to be announced soon for Falkirk and the Scottish islands.”

Following decisions taken at this Budget, notably on funding for health business rates relief and roads, the Scottish Government’s resource and capital budgets in 2020-2021 will increase by over £220m and £410m respectively with a total increase of more than £640m.

The additional funding, when combined with the £1.3bn funding in 2020-21 provided at the Spending Round 2019, results in the largest year-on-year real-terms funding increase for the Scottish Government in a decade.

Further measures announced by the Chancellor can be found in this factsheet.

BUDGET REACTION

Rapid joint engagement is needed on funding for the COVID-19 response in Scotland following the UK Government’s Budget, Holyrood Finance Secretary Kate Forbes said.

Responding to the UK Budget, Ms Forbes said: “While I’m pleased to see the UK Government’s economic response to coronavirus following my calls for this at the UK Treasury yesterday, we need confirmation on what this will mean for Scotland.

“We require urgent clarification on what funding Scotland will receive from the announcements made by the UK Government, at a time when the prospects for the economy and public finances remain very uncertain as the short term impacts of COVID-19 unfold.

“It is vital that our businesses, employees, health service and the most economically vulnerable in our society are all protected through this time, and this additional funding will help us in our response.

“I will ensure that businesses in Scotland are supported and will work with the business community to identify the most effective measures available to us, when we have more clarity on the funding available.

“We expect full consequentials from this additional funding and need urgent clarification to provide clarity for Scottish businesses and NHS Scotland to ensure we can respond effectively.

“The Barnett consequentials announced today are in line with the assumptions that underpinned the Scottish Budget and Budget Bill passed by the Scottish Parliament last week. While this funding is welcome, our resource budget is still lower in real terms than it was in 2010/11.”

Rebecca Long-Bailey, Labour’s Shadow Business Secretary, commenting on the failure to tackle the climate crisis in the Budget, said: “By ducking the bold measures needed to tackle the climate emergency, the Chancellor has blown the biggest opportunity for national renewal since the post-war era, betraying current and future generations.

“This Budget piles investment into new motorways without bringing down the cost of public transport, and offers only derisory support for electric vehicles. There is no sign of the Tory manifesto commitment to invest £9.2 billion to lower energy bills, and the proposal to load the costs of carbon capture and storage onto consumer bills is particularly concerning.

“Elsewhere the Budget sets out a series of measures that seem designed to let our biggest emitters off the hook.

“The Chancellor says people in this country voted for change, but nobody voted for catastrophic climate change.”

Dame Carolyn Fairbairn, CBI Director-General, said: “In deeply challenging times the Chancellor has worked against the clock to deliver two budgets in one: a first for national resilience today and a second for economic ambition tomorrow. It’s a bold Budget at scale, coordinated with the Bank of England, which will help people and business through tough times.

“As the UK responds to the immediate challenge, people are the first priority. So the measures to expand and ease access to sick pay and benefits are vital to protect people’s health and livelihoods.

“The Chancellor’s actions on business rates, emergency funds and loans will help ensure firms can weather the storm, especially smaller firms. Larger firms may also need support as the situation develops.

“Covid19 will bring new challenges daily which will need to be resolved, at speed. “Today’s impressive economic response should now evolve with business insight to become as agile as our approach to public health.

“While the response to Covid19 is urgent, it is very good to see this Budget’s focus on innovation and infrastructure. The Chancellor has listened to many calls from CBI members, with decisive action on vital long-term issues.

“The significant uplift in R&D funding, creation of a UK version of ARPA, a fundamental review of business rates and spending promises on infrastructure will all bring real benefits to people, business and communities.

“The Chancellor has set out some powerful incentives to get businesses investing, increasing the R&D tax credit and the Structures and Buildings Allowance. The £5bn of new export loans will encourage the best of UK business to look to new global markets.

“The next few months will bring opportunities for the Government to make major decisions that they have understandably had to put to one side today. Some gaps still need to be filled in around skills, energy efficiency and powering the UK’s low carbon future.

“Overall, today’s budget is a powerful signal to firms at home and abroad that the UK can and will manage the immediate challenges and long-term opportunities in parallel.”

TUC General Secretary Frances O’Grady said: “The government’s coronavirus plans will leave millions of workers behind. Without urgent action, too many will be plunged into poverty and debt.

“Today’s announcements won’t help the nearly 2 million people who miss out on sick pay because they don’t earn enough. Telling them to turn to the broken benefits system isn’t good enough. We need decent sick pay for all.

“Ministers must now urgently bring together unions and employers to talk about how to support jobs, including through wage subsidies for short time working schemes, and further help for public services – especially social care.”

On investment announcements, she added: “This spending u-turn is badly overdue. The priority now must be to repair the damage of ten years of Tory devastation.

“Helping working families and rebuilding public services must come first. And we need to see concrete action on the challenges of the future.

“This means banning zero hours contracts, sorting social care, ending the UK’s dire regional inequalities, setting out a credible plan to achieve net zero, and getting an EU trade deal that supports jobs and workers across the UK.”

Fraser Sime, regional director for Scotland at Bank of Scotland, said: “The announcement of £1m support towards Scottish food and drink exports is extremely encouraging.

“We have a team of relationship managers that work specifically with this industry across Scotland to support growth, both at home and overseas, and today’s development will further help local firms capitalise on new opportunities.

“With 120 active distilleries in Scotland, the investment of £10m into the research and development of more sustainable practices will assist the industry in reducing the environmental impact of our national tipple. To support this, our Clean Growth Financing Initiative also offers discounted lending to introduce measures to create more renewable energy sources for businesses.”

Jonathan Carr-West, Chief Executive of LGiU, said: “Understandably, this budget was dominated by the Government’s response to coronavirus. No one could argue with that, but for councils across Scotland it provides more questions than answers.

“Social care has been all but absent in the response to Covid-19. Hospitals will not be able to cope if large numbers of older sufferers cannot be discharged because of a lack of social care provision and social care providers will not be able to cope if a fifth of their already stretched workforce is off sick. This could create a dangerous and vicious circle. Mr Sunak promised “whatever it takes” for the NHS, but once again, risks forgetting the symbiotic relationship between health and social care.

“The Growth Deal in Argyll and Bute, help for whisky distillers and support for a campaign to promote Scottish food and drink will be welcomed by local government across Scotland, but many will be concerned that these are only small steps being taken to reverse the decade of funding cuts experienced in Scotland.

“Elsewhere in the budget, announcements on infrastructure, science, further education and research and innovation all look to a longer term future. Local government must have a role to play in making these happen but there remain questions about its capacity to do so after a decade of contraction.

“So, we had a budget designed to cope with an immediate crisis whilst also setting out significant spending and a vision for a long term economic transformation. Councils will be at the front line of our response to coronavirus and will be a crucial player in this transformation. However, local government may feel that it has dropped through the middle somewhat as the Government attempts to get so many other things done.”

Commenting on the UK Government’s Budget yesterday, Scotland Director for CAMRA Sarah Crawford said: “CAMRA welcomes the freeze in beer duty – which is a UK-wide tax – but we want to make sure brewers and pub companies pass on any savings on to pub-goers. 

“In the upcoming review of alcohol taxation we will be arguing for a cut in beer duty for beer served on tap, which would be the best way to support community pubs.

“Yesterday’s Budget also sees cuts and reliefs to the burden of Business Rates for pubs in England. CAMRA is calling on the Scottish Government to introduce further support and pub-specific rate relief schemes here to help our pubs cope not only with the short-term impacts of coronavirus, but also with the year-round effect that business rates have on the ability of our locals to stay open and thrive. We’d also like to see fundamental changes to the Business Rates system to make sure it is fairer to pubs.

“Cutting duty for draught beer in pubs and changing the Business Rates system are both vital steps to saving community pubs across Scotland from closure.”

Nimesh Shah is a Partner at leading accounting and tax advisory firm Blick Rothenberg. He summed the Budget:

“Today marked the first Budget for the new Government, the first for a new Chancellor who has only been in the job a few weeks and the first for almost 18 months. It could, however, be the first of several budgets in 2020.

“In a Budget overshadowed by COVID-19, the Chancellor started by announcing a package of measures aimed at easing the burden for individuals and businesses, including extending Statutory Sick Pay, offering a reduction to Business Rates for small businesses and allowing more time to pay taxes.

“The Chancellor’s hands seemed to be slightly tied, and the only notable change for workers was an increase to the National Insurance threshold to £9,500 providing a £100 annual saving.

“For the first time in 10 years, there was no increase to the personal allowance, which remained at £12,500. In fact, there were no changes to the majority of the personal tax thresholds with the basic rate band, inheritance tax nil rate band and the high-income child benefit threshold all untouched.

“In a measure aimed at appeasing NHS doctors and consultants, the pensions annual allowance will only begin to reduce for individuals with income above £240,000 (currently £150,000). However, at the other end of the spectrum, the minimum pensions annual allowance will be reduced to £4,000 (currently £10,000), affecting individuals with income above £300,000.

“The Chancellor wielded an axe on Entrepreneurs’ Relief without going as far as abolishing it completely. In an overnight move (which has its own complexities), the Entrepreneurs’ Relief lifetime allowance was slashed from £10 million to £1 million, reducing the tax saving to £100,000. Apparently, the reduced limit should only affect 20% of entrepreneurs while raising £6.3 billion for the Treasury in the process over the next five years.

“Entrepreneurs’ Relief has gone full circle, as the limit was £1 million when first introduced in 2008 and worth £80,000. At a time when all UK businesses are facing hugely uncertain futures, it was disappointing that the Chancellor, only a few weeks into the job, decided to make the move without any review or consultation.

“For the first time in many years, there were few changes to property taxes, with the Government moving ahead with a 2% SDLT surcharge for overseas buyers, which will take effect from April 2021 (presumably to encourage overseas buyers to transact before a higher SDLT cost applies).

“However, it’s worth noting that several property tax changes are due to take effect from 6 April 2020, including a reduction to main residence relief, the mortgage interest relief restriction taking full effect and reducing the timeframe in which capital gains tax should be paid to 30-days when selling a residential property.

“The only giveaway for savers was an increase to the Junior ISA limit to £9,000. At a time when the stock markets have tumbled and interest rates cut, pensioners and savers may have been looking to the Government for some help.”

This year’s winners and losers: who will be better off?

George Parker and Harriet James are Assistant Managers at leading accounting and tax advisory firm Blick Rothenberg

Winners

All earners

An increase in National Insurance Contribution (NIC) thresholds is a welcome move for all employees and the self-employed. The threshold will increase from £8,628 to £9,500, resulting in an annual NIC saving of £104 for employees and £78 for the self-employed.

Saving for retirement

From 2020-21, the thresholds used to calculate the tapering of the annual allowance will be increased so that workers with ‘adjusted net income’ of below £240,000 are not affected by the reduced limits.

The annual allowance is the total amount an individual and employer can contribute into their pension fund without incurring a tax charge.

Children under 18 years old

Junior ISA and Child Trust Fund annual subscription limits will increase by £4,632 from £4,368 to £9,000 – a massive uplift.

Losers

Entrepreneurs

Entrepreneurs Relief (ER) Lifetime Allowance will be reduced from £10m to £1m affecting an estimated 20% of business owners. Going forward, only the first £1m of capital gains arising on the sale of an individual’s business will be taxed at 10%, with the remaining gain being taxed at 20%. Harsh anti-avoidance rules have also been introduced, backdated from April 2019.

Top earners

Currently individuals with an ‘adjusted net income’ in excess of £210,000 have their annual allowance tapered to £10,000. From April 2020, the allowance will be tapered to £4,000 for individuals with total income above £300,000. Any excess contributions over the new tapered annual allowance will be subject to tax at 45%.

Companies investment in plant and machinery

The favourable – yet temporary – Annual Investment Allowance (AIA) of £1million will come to an end on 31 December 2020, reducing by 80% to £200,000 per year.

Pensioners

The forgotten in this Budget are pensioners. With no reforms or simplification to Inheritance Tax announced, with the personal allowance and income tax thresholds remaining unchanged, and as they do not pay NIC, inflation will drag more pensioners into higher taxes. Based on forecasted inflation at 2%, many pensioners will be worse off in real terms.