News Item - Spring Statement - March 2020

A brief summary of the Chancellor's Spring Statement on Wednesday 11th March 2020:
 

• Increasing the discount on national insurance contributions that small firms can receive through the Employment Allowance from £3,000 to £4,000, and introducing a 14-day SSP rebate for small firms with fewer than 250 employees for those unable to work because of coronavirus.  

• Reforming – rather than scrapping – entrepreneurs’ relief, a reduction in capital gains tax that small business owners receive when selling their firms, by reducing the lifetime limit to £1 million.

• Extending the retail discount on business rates to a wider set of small businesses and exempting those who qualify for the discount from rates entirely for one year, increasing the pubs discount to £5,000, and committing to a fundamental review of the rates system.

• Delivering on a promise to introduce a one-year national insurance holiday for small employers that take on a member of staff from the ex-forces community.

• Making grants of £3,000 available to the 700,000 businesses that currently qualify for Small Business Rates Relief, while committing £130 million to the British Business Bank’s Start-Up Loans programme.

• Setting up a new, temporary Coronavirus Business Interruption Loan Scheme that will see banks offer loans of up to £1.2 million to support small and medium-sized businesses, and £5 billion worth of new export finance.  

• Widening access to HMRC Time To Pay arrangements for firms struggling with cash flow issues, creating a £500 million hardship fund for the vulnerable – including the self-employed who cannot claim SSP – to access through local authorities, and temporarily relaxing minimum income floor rules – which hurt those with fluctuating incomes – from the Universal Credit system.

• Investing £2.5 billion in pothole repairs, £5 billion in gigabit-capable broadband, £5 billion in flood defences, and £1 billion in zero-carbon transport initiatives while maintaining the fuel duty freeze for a 10th successive year.   

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Please note that the above report is only our brief interpretation and understanding of the Government's budget proposals for the 2020 Spring Statement, delivered to Parliament by Rishi Sunak on Wednesday 11th March 2020. These provisions are normally confirmed upon the receipt of Royal Assent later in the year. Jonathan Davis. and his associates cannot be held responsible for any errors, omissions or changes to the above.

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