The Chancellor today delivered his Spring Budget, setting out a three-part plan.
Rishi Sunak said that the plan:
- “Meets the moment” by protecting jobs and livelihoods across the UK through the next stage of the crisis and beyond
- Starts the work of building our future economy
- Begins fixing the public finances once we are on the way to recovery
‘As part of our Plan for Jobs businesses across the East Midlands can expect to benefit from a new Restart Grant – a one off cash payment of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses; a new UK-wide Recovery Loan Scheme to make available between £25,000 and £10 million to help businesses of all sizes through the next stage of recovery; an extension of the VAT cut to 5% for the hospitality, accommodation and tourism sectors until the end of September; additional cashflow support through an extension to the loss carry back rules worth up to £760,000 per company; and a three month extension to the 100% business rates holiday, with the vast majority of eligible businesses receiving 75% relief across the year.
To protect the incomes of individuals as we begin to unlock through the Prime Minister’s roadmap, we’re extending the furlough scheme and Self-Employment Income Support Scheme through to September; maintaining the £20 per week uplift to Universal Credit for another six months; and eligible Working Tax Credit claimants are set to benefit from a one-off payment of £500, to provide continued support over the equivalent period as those in receipt of Universal Credit.
The Budget also sets out steps towards an investment-led recovery; including extending the Annual Investment Allowance, freezing Alcohol and Fuel Duties, and introducing a mortgage guarantee scheme – to help generation rent become generation buy.
In addition to UK-wide measures to extend support for people and businesses the Budget also included several announcements which will boost jobs and opportunities across the East Midlands
Chancellor of the Exchequer Rishi Sunak said:
“People shouldn’t have to leave their local area to get on in life or further their career. Levelling up means spreading opportunity and investment throughout the UK—ensuring everyone has a fair chance no matter where they live.
“My budget this year includes substantial investment across the East Midlands in the communities that need it most.”
HOW THE BUDGET BENEFITS LOCAL COMMUNITIES:
The government has today published the prospectus for the new £4.8 billion Levelling Up Fund, which sets out criteria on how local areas can bid for cash as part of the 2021-22 round of funding. The Fund will invest in local infrastructure and support the economic recovery from Covid
The Chancellor also announced the Community Ownership Fund: with £150m being provided to help protect the local institutions and facilities which are important to people. It will support community groups to take ownership of facilities such as pubs, sports clubs and theatres, where these are at risk of being lost – to ensure they can play a central role in towns and villages across the UK for years to come.
The Government is also commissioning a new National Infrastructure Commission study on towns and regeneration which will look at how to maximise the benefits of infrastructure policy and investment for towns. The terms of reference have been published at this Budget.
The Chancellor will continue to spread the feel good factor across the country by pumping £2.8m new cash into our bid to host the World Cup in 2030, with £25m new funding announced alongside this to help the grassroots game grow – enough to build around 700 new pitches across the UK.
In two further boosts for major events, £1.2m new funding will be earmarked so the Women’s Euros goes ahead in England in July 2022 following delays due to Covid, and £28m of new cash will also be announced for Jubilee organisers to deliver the UK-wide Queen’s Jubilee bank-holiday bonanza in June 2022.
THE EAST MIDLANDS WILL BENEFIT FROM TARGETED SUPPORT FOR LOCAL PRIORITIES:
The Budget announces that East Midlands Freeport was successful in the Freeport bidding process. Freeports will create national hubs for trade, innovation and commerce, levelling up communities across the UK, creating new jobs, and turbo-charging our economic recovery.
13 local authorities in the East Midlands will be priority places for the £220 million Community Renewal Fund, which will invest in people, communities and businesses across the UK. The government is launching the prospectus for the Community Renewal Fund at Budget.
We expect East Midlands airport to benefit from Airport and Ground Operations Support Scheme extension and will help support their fixed costs, such as business rates. The freeze in air passenger duty for short-haul flights will benefit flights departing from the East Midlands, while the long-haul economy rate will only increase by £2.
Employers who hire a new apprentice from the 1st April to the 30th September 2021 will receive £3000 per new hire. Apprenticeships are popular in the East Midlands, where 28,600 apprentices started their apprenticeship during the academic year 2019/2020.
£126 million is being provided to extend expansion of traineeships in England for the 21-22 academic year, providing up to 43,000 traineeship placements. This will fund high quality work placements and training for 16-24-year olds who are NEET (not in education, employment or training) in the 2021-22 academic year. Over 63,000 people in the East Midlands would be eligible to take up a traineeship.
Around 109 quarrying sites in the East Midlands will benefit from a freeze in the Aggregates Levy.
The 80% of households in the East Midlands who own a car will benefit from a fuel duty freeze.
We have agreed new Town Deals with Newark, Clay Cross, Skegness, Mablethorpe, Boston, Lincoln, Northampton, Mansfield, and Staveley. These towns will benefit from £200 million funding from the Towns Fund to support their long-term economic and social regeneration as well as their immediate recovery from the impacts of COVID-19.
- Newark (£25m)
- Newark’s funding seeks to improve social mobility, alleviate deprivation, and improve workers skills across the community – all of which will help the area to level up.
- Clay Cross (£24.1m)
- Clay Cross’ funding will look to increase enterprise and innovation across the town – helping to create jobs for residents.
- Skegness (£24.5m)
- Skegness’ funding focuses on investing in local infrastructure to support connectivity and opportunity for people within the town.
- Mablethorpe (£23.9m)
- Mablethorpe’s funding looks to create a healthy and diverse economy – through encouraging healthy lifestyles, personal mobility and economic participation.
- Boston (£21.9m)
- Boston’s funding will contribute to creating sustainable economic growth and increasing the connectivity between communities – helping to improve the jobs on offer to residents.
- Mansfield (£12.3m)
- Mansfield’s funding will focus on investment in new skills, and opportunities for businesses to grow – helping people both directly and indirectly to level up their community.
- Lincoln (£19m)
- Lincoln’s funding will enhance local infrastructure helping to boost connectivity within the town – allowing the community to stay connected and enabling access to better opportunities for all.
- Northampton (£25m).
- Northampton’s funding will focus on investment within communities – developing open spaces that will enable residents to live a cleaner and greener life.
- Staveley (£25.2m)
- Staveley’s funding seeks to establish the area as a place where people want to kickstart their careers, grow their business, and ultimately settle – helping to level up the town.
THIS BUILDS ON EXISTING MEASURES BENEFITING THE EAST MIDLANDS:
- We’re building 5 hospitals across the Midlands and continuing to grow medical undergraduate degree places, with an additional 173 places in the East Midlands compared to 2017-18.
- We are upgrading strategic roads links such as the A46 Newark Bypass and A38 Derby Junctions.
- The East Midlands will benefit from nearly £90 million investment across 10 projects as part of the Housing Infrastructure Fund, including £29m for utilities, road improvements and land remediation in Rutland.
STATISTICS ON HOW OUR PLAN FOR JOBS HAS SUPPORTED AREAS THROUGHOUT THE EAST MIDLANDS:
- The 100% business rates relief for retail, hospitality and leisure has saved more than 29,000 properties in the East Midlands over £600 million.
- 90,000+ BBL facilities has been offered to businesses with a total value of over £2.6bn.
- 5,000+ CBILs facilities has been offered to businesses with a total value of over £1.2bn.
- There have been 451,000 claims to our Self-Employment Income Support Scheme worth over £1.2bn
- As at 31 January, the government was supporting almost 300,000 employments through the CJRS..
- There are around 325,000 households in receipt of Universal Credit.
- There are around 115,000 households in receipt of Working Tax Credit.
- The 100% business rates relief for retail, hospitality and leisure has saved 1,700 properties in Leicester almost £48 million
- Our Self-Employment Income Support Scheme has seen 25,600 claims worth £60,400,000.
- As at 31 January, the government was supporting almost 25,000 employments through the CJRS.
- There are around 33,000 households in receipt of Universal Credit.
- The 100% business rates relief for retail, hospitality and leisure has saved 1,200 properties in Derby over £42 million.
- Our Self-Employment Income Support Scheme has seen 20,200 claims worth £49,200,000.
- As at 31 January, the government was supporting 15,000 employments through the CJRS.
- There are around 23,000 households in receipt of Universal Credit.
- The 100% business rates relief for retail, hospitality and leisure has saved over 2,100 properties in Lincoln over £27 million.
- There have been 8,500 claims to our Self-Employment Income Support Scheme worth £23,700,000
- As at 31 January, the government was supporting almost 6,000 employments through the CJRS.
- There are around 9,000 households in receipt of Universal Credit.
- The 100% business rates relief for retail, hospitality and leisure has saved 1,700 properties in Nottingham over £65 million.
- Our Self-Employment Income Support Scheme has seen 25,500 claims worth £60,100,000.
- As at 31 January, the government was supporting almost 20,000 employments through the CJRS.
- There are around 31,000 households in receipt of Universal Credit.
- The 100% business rates relief for retail, hospitality and leisure has saved 1,500 properties in Northampton over £39 million.
- There have been 33,800 claims to our Self-Employment Income Support Scheme worth £97,000,000.
- As at 31 January, the government was supporting more than 15,000 employments through the CJRS.
- There are around 18,000 households in receipt of Universal Credit.