Budget Summary 2021
We are delighted to enclose our summary of the key announcements in yesterday’s Budget 2021 statement.
The structure of this Budget, like its predecessor, was driven by the pandemic’s impact on the economy. With some form of lockdown continuing over the next few months, Mr Sunak extended the main employment support schemes through to 30 September and added further grants and loans to assist struggling businesses. The total cost of his pandemic measures in this tax year and the next are now projected to be greater than the amount that will be raised in income tax over the same period. How the government can claw back that expenditure, while rebuilding the economy, formed the focus of the Chancellor’s speech.
From a personal financial planning perspective, there were no significant changes, albeit the freezing of various allowances and tax bands will have an incremental adverse impact going forward and highlight the need to ensure all allowances are utilised annually, were possible.
There were some prominent announcements from a business/corporate perspective, more notably the 130% first year super-deduction on companies investing in qualifying Plant and Machinery, which may be of interest to some. We await the finer detail.
As ever, whatever the changes (or lack of), we will take this into account when managing your assets and investments now and in the future. However, If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please call us to discuss them.
Jonathan, Alan & Liam
Directors
MBS Independent Financial Planning – Your Budget Summary 2021
