The Chancellor pledged to use the “full measure of our fiscal firepower” in his Budget to save jobs as Britain emerges from the lockdown and he warned that the nation faces a “moment of crisis”. Rishi Sunak said today’s Budget was about “bringing prosperity to the whole United Kingdom”, adding that a “majority of today’s Budget measures will apply directly to people in all four nations of the United Kingdom.”

Sunak followed through on much of the pre–briefing during his speech, leading with an extension in furlough scheme until September. The extension is a generous one when considering public expectation is that many restrictions are expected to fall away throughout the summer across the UK. That’s also emphasised by the Government’s own roadmap out of restrictions. However, the extension will be welcomed by businesses who will see a return to trading as a journey, rather than a simple flick of a switch. There were other measures likely to be welcomed by those in the hospitality sector, including the 5% reduced rate of VAT for the sector until the end of September, with an interim rate of 12.5% for another six months after that.Elsewhere, the Chancellor has bet big on businesses being willing to face up to the rise in corporation tax. Sunak announced that corporation tax on profits will rise from 19 per cent to 25 per cent by 2023, though small businesses will be exempt. While the headline rate is higher elsewhere in places such as France and Germany, the amount raised in the UK will be higher. The chair of the Treasury Committee and Conservative MP Mel Stride noted the corporation tax increase, is “quite a hike” but added that the UK will still remain “internationally competitive” and says it is a “reasonable move”. For Northern Ireland, Stormont has had the power to cut the rate of corporation tax since 2015. However, such a move would lead to a cut in the block grant. To offset the long–term tax hit on businesses Sunak also unveiled what he described as the “biggest business tax cut in modern British history” to encourage renewed investment to kick–start the economy. Under the ‘super–deduction scheme’, businesses who invest in the next two years will be able to claim 130 per cent of the cost against their tax bill.There were other policies not typically considered Conservative too. Though the party’s manifesto said that income tax would not rise, a freeze in the threshold at which people pay the basic and higher rates of tax from 2022 and 2026 is what some have suggested is a rise by another name. As a result of fiscal drag, more people will be dragged into the higher rate as wages rise. There were freezes elsewhere, including on the lifetime allowance on pensions which will be frozen at just over £1 million, and the thresholds for VAT and capital gains tax. However, fuel duty being frozen for the tenth year in a row and alcohol duties for the second year were more of what was expected. There were significant measures on housing as Sunak confirmed that the stamp duty holiday will be extended until the end of June to deal with the “huge volume” of transactions. He also said that to avoid a “cliff–edge” there will be no stamp duty for three months afterwards on properties valued below £250,000. The Government will also provide mortgage guarantees for new homebuyers who cannot afford large deposits. Mortgages of up to 95 per cent for home purchases of up to £600,000 will be available from next month from lenders including Lloyds, NatWest, Santander, Barclays and HSBC. Though critics will argue a mortgage guarantee scheme will artificially stoke house prices, Ian Mulheirn, Executive Director Policy at the Tony Blair Institute, suggested any effect would be small, while the policy necessary as the stamp duty cut is phased out. Freeports also featured, to the adulation of supporters and the ridicule of the non–believer. Eight new freeports were announced across England, having previously existed until 2012. As a reminder, goods that arrive into freeports from abroad aren’t subject to the tax charges, called tariffs, that are normally paid to the government, unless those goods leave the freeport and are moved elsewhere in the UK. Otherwise, they are sent overseas without the charges being paid. Supporters say freeports can help increase manufacturing, encourage jobs and investment in areas that would otherwise struggle to attract them. In response, opponents argue they don’t boost employment overall, moving economic activity from one place to another but at a cost to the taxpayer. Northern Ireland is yet to set its own freeport policy. Labour leader Sir Keir Starmer responded for the opposition and, following some slightly flat jokes, argued the Budget simply managed to “paper over the cracks”. There is always plenty to criticise within a Budget and Starmer did, as others will do over the coming days as the detail is examined. However, Starmer’s desire to attack the Chancellor in a jokey fashion, with repeated reference to Sunak’s branding campaign, seemed to be indicative of criticism the party has faced in recent weeks as it struggles to develop its identity. Headline announcements The Budget contained a number of headline announcements, some of which have appeared scattered across the press in recent days. The Treasury has structured the policy announcements across fives areas: Covid–19, protecting jobs and livelihoods, strengthening public finances, creating an investment led recovery and investment across the four nations of the UK. Northern Ireland, Scotland and Wales