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How will the budget effect you?

March 17, 2020 featured image

Last week’s budget focused primarily on measures to help the country cope with the outbreak of the Coronavirus, COVID 19, but there was also a promise to invest in improvements to the UK’s infrastructure, particularly our roads and a pledge to build more homes.

Our economy is predicted to grow by 1.1% this year, revised down from 1.4% a year ago. Here are the key points:

Tax implications:

  • The tax threshold for National Insurance Contributions will rise from £8,632 to £9,500
  • Those earning more than £9,500 will be, on average, £85 a year better off


  • More than £600bn is to be spent on roads, rail, broadband and housing by the middle of 2025
  • New £1bn fund to remove all unsafe combustible cladding from all public and private housing higher than 18 metres
  • There will be £27bn for motorways and other arterial roads, including a new tunnel for the A303 near Stonehenge
  • £2.5bn will be available to fix potholes and resurface roads in England over the next five years

Fuel, booze and cigarettes:

  • Fuel duty is to be frozen for the 10th consecutive year
  • Duties on spirits, beer, cider and wine are also to be frozen
  • Tobacco taxes will continue to rise by 2% above the rate of retail price inflation. This will add 27 pence to a pack of 20 cigarettes

How does the budget help with the present threat of the Coronavirus?

  • The government has pledged a £5bn emergency response fund to support the NHS and other public services in England through the current crisis.
  • All those advised to self-isolate will be entitled to statutory sick pay, even if they’ve not presented with symptoms.
  • Self-employed workers, not eligible to statutory sick pay, will be able to claim contributory Employment Support Allowance (ESA). This benefit will be available to claimants from day one, not after a week, as now.
  • Firms with fewer than 250 staff will be refunded for sick pay payments for a period of two weeks.
  • Small firms will be able to access Business Interruption loans of up to £1.2m.

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