In Feb 2020, in the Budget 2020 speech, it was set out that the government of all over the country must combat a certain amount of money to save their country. For the deadly Coronavirus outbreak, the global economy is gradually slowing down.
After the three weeks of the Budget Speech, on March 11, the World Health Organization (WHO) announced the devastating effect of the COVID-19 outbreak. The head authorities further announced the high risk and security which is attached to it.
The COVID-19 outbreak is mainly a battle to survive. A journey to survive for our existence on many fonts-medical, economic and social as well. From the uncertain resignations to stock market crashes, the world is now experiencing a major breakdown including low-base interest rates in the budget.
The Government from the affected countries has promised to give their best to keep their citizens healthy and financially secure. According to the Finance Experts, the country is now going to come across a huge list of dramatic funding changes, breaks, and cash injections.
Key Areas of Resilience Budget
In the Resilience Budget, there are mainly three key areas. First and foremost, the budget tackled how to save jobs, support workers and to protect their livelihood. Secondly, they assured to help large, medium and small-sized businesses to overcome these uncanny situations. Last but not least, it is necessary to build up the economy of a country to save it for the economic outbreak.
Detailed Information About Budget 2020 Speech
Certain important things were discussed in the speech of Budget 2020. This includes sick pay, tax and pay, mortgage and housings, cost of living expenses, savings and investments and many more other aspects.
The first thing that should be considered for every employee whether he is engaged in small, large or medium organizations is sick pay. A fifth of the workforce can take sick paid leave until he cures. If anyone falls sick because of the deadly coronavirus, the Government should financially help them.
The infected employees must self-isolate themselves and stop coming to their workplaces. A helpline number was shared with the employees who run small businesses. If those small entrepreneurs are suffering to pay their bills, they can contact that number to seek help.
Additionally, statutory sick pay is allowed for the organizations which have lower than 250 staff. They can take up to 14 days of sick leave and the money for those days will be refunded by the Government. According to the employment status or income level of an individual, the Government will provide any kind of help so that they can stay home during the COVID-19 outbreak.
Tax and Pay
The chancellor of The Office for Budget Responsibility is expected to have an increase in the national insurance threshold to £9,500 by April. Even after April, there will be an annual growth in the purchasing of mobile phones, broadband, and Television as well.
Housings and Mortgage
By 2021, it is being hoped that it might be noticed that 2 per cent of non-UK residents will bring UK tax treatment in line. This change will slightly impact the housing market as a whole. Because the investors overseas are contributing a little proportion to the homeowner of the UK.
COVID-19 imposes a great impact on the personal cash flow. Rather than just affecting the integers rate cut, its effect is devastating. The interest rate just cut down to 0.25 per cent in an hour, according to Today’s Budget.
Before the announcement of the Budget speech 2020, all the money lenders of the UK were planning rules for mortgage payments and charges for the hit by COVID-19. According to them, this strict rule will help the country to recover from the drastic economic change.
Though the missed debt payment charges and recently applied mortgage payments are apparently not clear to the money lenders. It could be worse for them to manage if this pandemic crisis continues.
Cost of Living
According to the Budget plan, it was announced that alcohol duty would be frozen. Besides, fuel duty is also badly impacting on climate change. During the lockdown or breakdown situation, no liquor shops will be opened for the individuals. And finally, the absurd taxes on the sanitary products will be removed from April onwards.
Within two years, the cost of the plastic packing food and other items might rise because of the plastic packaging tax. However, the price of Gas will increase because of climate change, as it was stated in the Budget speech. The cost would increase because cleaner sources of energy are going to be used to save the environment. Ultimately, it will help people all over the world to save on electricity bills more.
Incentives and start-ups with tax reliefs on capital gains were created to help the small businessman. But, some specialists think that it can be a matter of semantics. With proper consultation and advice, the entrepreneur’s relief can become successful.
As per the Budget, the entrepreneur’s relief might reduce from £10m to £1m. And for this, they will be able to get the benefit up to £100,000 in their lifetime. The amount is not sufficient to showcase their creativity and carry forward their entrepreneurship. Enterprises need stability and this budget is not enough to continue their business for the coming 12 months to save from the implications of coronavirus.
A standard amount of money got fixed that someone can contribute from their pension each year. For the ones with high salaries, the maximum amount to give away their pension was reduced. This reduction in taper charge will increase the overall annual allowance charge, which has an adjusted income of over £312,000.
Savings and Investments
The new budget plan will be quite beneficial for the nation’s savers and investors. There will be a drastic change in the amount that they can give away. Furthermore, this will more likely boost up the household owners as a whole. <