Day-to-day departmental spending is set to grow at the fastest rate over a spending review period since Spending Review 2004. Lower wage growth, consumer spending and profits, and an adjustment to fuel efficiency assumptions have downward effects on income tax and NICs, VAT, corporation tax and fuel duty receipts respectively. ↩, HMRC analysis based on Survey of Personal Incomes (SPI) 2017-18 data, and Budget 2020 OBR forecast. The ‘25 Year Environment Plan’ sets out the government’s ambitions for clean air and water, thriving plants and wildlife, and mitigating and adapting to climate change. Brownfield Housing Fund – To level up all regions of the country, the Budget launches a new £400 million brownfield fund for pro-development councils and ambitious Mayoral Combined Authorities with the aim of creating more homes by bringing more brownfield land into development. Rates will return to planned levels over the following two years, increasing by 1% in 2021-22 and 1% in 2022-23. This is a difference of £4.3 billion, increasing to £14.6 billion by the end of the forecast period. Earnings growth remains above inflation. Time to Pay – The government will ensure that businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Follow the latest commentary from Deloitte. The government will also look at existing domestic or EU derived regulations that might hinder digital competition and entrench monopoly behaviours and will ensure that regulatory reforms applying to digital and tech businesses are pro-innovation and coherent. In addition, the government will publish an English Devolution White Paper in the summer, setting out how it intends to meet its ambition for full devolution across England. Ahead of those discussions, the government will invest £1 billion of additional funding for social care next year, as announced at Spending Round 2019. The government will also consult on whether qualifying R&D tax credit costs should include investments in data and cloud computing. On 14 July 2020, the Office for Budget Responsibility (OBR) published their Fiscal sustainability report – July 2020. In line with the government’s priorities, this will also include around £800 million for bus and cycling infrastructure. ↩, Internal HMRC analysis of Entrepreneur’s Relief data. By saving towards their future, families can give children a significant financial asset when they reach adulthood – helping them into further education, training, or work. The threshold will be reduced to £300 in April 2021. The government’s significant progress in restoring the public finances to health over the last decade means it can now afford to support the economy in the short term while investing to support long-term growth. Tackling promoters of tax avoidance – As announced in the government’s response to the independent Loan Charge Review,[footnote 105] the government will legislate in Finance Bill 2020-21 to take further action against those who promote and market tax avoidance schemes. This means 95% of the UK’s landmass will have high quality mobile coverage by 2025. The OBR expects the employment level to increase further over the forecast period, reaching 33.4 million in 2024. The British Film Commission will act as a single source of expert advice for investors and developers and provide targeted support at the early stages of viable projects to facilitate increased provision of studio facilities across the UK. Since emerging in China in December 2019, COVID-19 has spread widely, with a significant number of cases reported worldwide, including an increasing number in the UK. Auctions will remain the government’s primary method of gilt issuance. The employment rate – the proportion of people aged 16 to 64 who are in paid work – also reached a record high of 76.5% in the same period (Chart 1.3). Date: 29 July 2020 . Transforming Cities Fund – The Budget allocates over £1 billion from the Transforming Cities Fund. As a result of the proposed changes to the prudential regime for investment firms, the government will be taking steps to ensure that bank tax legislation continues to operate in line with current policy. New build homes’ connectivity – The Budget announces that DCMS will shortly publish a consultation response which will confirm the government’s intention to legislate to ensure that new build homes are built with gigabit-capable broadband. Alongside the Budget, the government has published information about the support available to individuals and businesses whose finances are affected by COVID-19. TME as a percentage of GDP has also increased because of classification and methodology changes that have impacted underlying spending, in particular those relating to student loans, public sector pensions and depreciation. In the Budget, the Chancellor reaffirms the symmetric inflation target of 2% for the 12-month increase in the CPI measure of inflation. This will outline the range of policy, operational and communications interventions both underway and in development to drive those who promote tax avoidance schemes out of the market, disrupt the supply chain to stop the spread of marketed tax avoidance, and deter taxpayers from taking up the schemes. This will provide a period of up to 60 days, where people in problem debt will be protected from enforcement action by their creditors and the charging of further interest and fees on their debts. Macroeconomic stabilisation: The review will consider the case for a more active role for fiscal policy in stabilising the economy, especially if there is reduced space for monetary policy due to low interest rates. In February, the Prime Minister announced £5 billion of new funding for buses and cycling. Well-maintained roads are important for all road users, including cyclists and bus passengers. To support that, the government will invest an additional £12.5 million in HMRC in 2020-21 to begin work immediately on the implementation of breathing space. Details about the emergency budget announced today – July 8th, 2020. Enhancing Housing Benefit compliance – The Budget provides further investment of up to £12 million per year in local authority resource to maximise their capacity to tackle Housing Benefit fraud and error. The government expects that at least 800,000 young people will benefit from new or upgraded youth facilities. The government has reviewed how support for the self-employed can be strengthened. Tax treatment of the Windrush Compensation Scheme – As announced in April 2019, the government will legislate in Finance Bill 2020 to introduce exemptions from income tax, inheritance tax and capital gains tax for payments made on or after 3 April 2019 under the Windrush Compensation Scheme. [footnote 5], UK labour productivity (measured as output per hour) did not grow at all in 2019, following subdued growth of 0.5% in 2018. While decisions on debt management policy must be taken with a long-term perspective, specific decisions on funding the government’s gross financing requirement are taken annually. The consultation will be open for a period of six weeks, closing on 22 April 2020. HM Treasury has reviewed the tapered annual allowance and its impact on the NHS, as well as on public service delivery more widely. By Tom Rees 10 July 2020 • 6:59am ... UK economy, Budget 2020, Coronavirus More from Business. At Spending Round 2019, the government increased day-to-day spending on further education by £400 million in 2020-21, recognising its vital role in equipping people with the skills they need to succeed. The OBR notes that the spread and impact of a COVID-19 outbreak clearly represents a downside risk to the forecast, but the scale is highly uncertain and the economic impact is likely to be temporary. Nurses – From September 2020, all new and existing students on nursing, midwifery and allied health courses in England will benefit from additional non-repayable maintenance grants to help with living costs. UK Shared Prosperity Fund (UKSPF) – The UKSPF will replace the overly-bureaucratic EU structural funds, levelling up opportunity in each of the four nations of the country. 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