18 February 2020
When is the 2020 UK budget?
The UK Budget 2020 date has been set for Wednesday 11 March 2020. Although Sajid Javid resigned and was replaced by Rishi Sunak as Chancellor of the Exchequer in February, the Budget will still go ahead on this date.
This announcement comes after ex-Chancellor Sajid Javid’s first Budget, originally set for 6 November 2019, was cancelled due to ongoing Brexit negotiations and the General Election that took place in December.
Cracking on with preparations for my first Budget on March 11. It will deliver on the promises we made to the British people – levelling up and unleashing the country’s potential. pic.twitter.com/5msCVfJWN8
— Rishi Sunak (@RishiSunak) February 18, 2020
What is the Budget?
The Budget is a key fiscal event in which the Chancellor of the Exchequer announces the government’s plans for tax and spending for the financial year. This Budget will crucially be the first major financial update after Britain left the EU on 31 January 2020.
What is expected to be included in the 2020 Budget?
It is expected that the Budget will follow the same format as the previous two Budgets, as the Chancellor of the Exchequer delivers the latest tax updates.
In his confirmation of the new Budget date, Mr Javid stated:
“People across the country have told us that they want change. We’ve listened and will now deliver. With this Budget we will unleash Britain’s potential – uniting our great country, opening a new chapter for our economy and ushering in a decade of renewal.”
Based on recent announcements, this Budget looks set to focus on the UK economy for the decade ahead while prioritising the environment, public services and national living costs.
Changes to Minimum Wage
At the end of December 2019, the Government announced a 6.2% rise in the National Living Wage from 1 April 2020 by increasing the hourly rate from £8.21 to £8.72 for those aged over 25. This works out at an increase of £930 per year for a full-time worker on the National Living Wage.
The National Minimum Wage is also increasing on 1 April 2020 as follows:
- A 6.5% increase from £7.70 to £8.20 for 21-24 year olds
- A 4.9% increase from £6.15 to £6.45 for 18-20 year olds
- A 4.6% increase from £4.35 to £4.55 for Under 18s
- A 6.4% increase from £3.90 to £4.15 for Apprentices
The Queen’s Speech in December 2019 also outlined new plans to be unveiled to help first-time buyers onto the property ladder. The briefing notes for the speech states: “The Government will shortly launch a consultation on First Homes. This will provide homes for local people and key workers at a discount of at least 30 per cent – saving them tens of thousands of pounds.”
The Government will also look to renew the Affordable Homes Programme and reform the Shared Ownership scheme to make “buying a share of a home fairer and more transparent”.
This echoes the plans announced by the Housing Secretary, Robert Jenrick, in October 2019 to change the way Shared Ownership works, with the minimum initial stake for buying a home being cut from 25% to 10%. The new plans will allow buyers to purchase their home in just 1% increments, with a reduction on the fees charged.
Mr Javid also hinted at his plans to reform the housing system in an interview with The Times in August 2019 – potentially changing Stamp Duty Land Tax so that the seller pays rather than the homebuyer.
Mr Javid delivered his Spending Round to Parliament in September 2019, which set out departmental spending plans for 2020-2021.
In this review, the then-Chancellor announced an increase of £13.8 billion in spending to deliver on the public’s priorities. The government will provide schools with more money per pupil, along with a boost for the NHS, the social care sector, the police and the Armed Forces.
The Prime Minister, Boris Johnson, confirmed £1.8 billion of funding to help improve patient care under the NHS in August 2019.
Recap: Autumn Budget 2018 key points
In the 2018 Autumn Budget, Mr Hammond announced forecasts of ongoing growth that will make for a strong and prosperous post-Brexit UK. He also shed some positive light on the business landscape, driving spend into an entrepreneurial movement that is more fitting for the new technological age.
Read more: Follow the link for our key takeaways for the Autumn Budget 2018.
Whatever happens in this Budget, TBL Accountants will keep you up to date, letting you know how the announcements will affect you and your business.