Hospitality help in Sunak’s Budget is a relief for Arran
Furlough scheme extended, support for people who are self-employed and extended VAT rate reduction
The extension of the furlough scheme and the extension of support for the self-employed will come as a relief for many families and businesses on Arran.
Extending the reduction of VAT for hospitality and tourism businesses to five per cent by a further six months will also help the industry on the island start to get back on its feet and begin trading again.
However, opponents say that by increasing it back up to 12.5 per cent in October does not solve the problem.
Speaking in the House of Commons this week, UK Chancellor Rishi Sunak set out a three-part plan that protects jobs and livelihoods through the next stage of the crisis, starts the work of building our future economy and begins fixing the public finances once we are on the way to recovery.
As part of the next stage of the UK Government’s Plan for Jobs, he announced the furlough and self-employment support schemes would be extended until the end of September, alongside a sixmonth extension to the £20 Universal Credit uplift, a oneoff £500 payment to eligible Working Tax Credit claimants and Covid-19 related income tax exemptions for employees.
He also provided a £1.2 billion boost for Scotland with additional funding for the Scottish Government through the Barnett formula.
Mr Sunak said: ‘The UK government has protected millions of jobs and livelihoods across Scotland and the strength and stability of our economic union will ensure we bounce back from this pandemic together.
‘This Budget will ensure the people of Scotland continue to be supported through our Plan for Jobs, committing more than a billion pounds in extra investment and funding to help fuel the UK’s recovery.’
The Budget also looked to the future with more than £57 million of investment to turbocharge green recovery and accelerate the creation of almost 13,000 jobs, including accelerated funding for the Ayrshire Growth Deal.
Fuel duty will be also frozen for the 11th consecutive year, while alcohol duties will be frozen across the board – only the third time in 20 years – saving drinkers £1.7 billion over the coming years. This means spirits duty will be frozen for the fourth year running, making a typical bottle of Scotch whisky 30 pence cheaper compared to the planned rises and giving a £450m boost to distillers.
As part of the aim to maintain Scotland as a premier destination for trade and investment and level up the whole of the UK, the government continues to work constructively with the Scottish Government to establish at least one freeport in Scotland, which will channel new investment to regenerate communities.
Scottish businesses will also benefit from UK-wide initiatives to invest in the future of firms from start-up to scale up.
The new Help to Grow scheme will offer up to 130,000 companies across the UK a digital and management boost and a £375 million UK-wide ‘Future Fund: Breakthrough’ will support highly innovative companies such as those working in life sciences, quantum computing or clean tech that are aiming to raise at least £20 million of funding.