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Rishi Sunak’s key announcements in today’s Budget statement

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  • Huge tax hike announced – with corporation tax on company profits rising by 6% to 25% in 2023
  • Furlough extended until September
  • Income tax threshold freeze likely to mean working Britons pay more – with tax burden from 2025 highest since 1960s
  • Universal Credit uplift of £20 extended for six months
  • Budget to feature plan to extend furlough until September
  • Business rates, VAT and stamp duty reductions extended
  • Contactless limit more than doubles
  • Sunak to give news conference at 5pm – the first of its kind for a budget
  • Federation of Small Businesses said they were disappointed that there was not enough in the budget for “job creation”.

 

A HUGE hike in corporation tax is probably the main headline announcement of the budget.

The chancellor said: “This new higher rate won’t take effect until April 2023, well after the point when the OBR expect the economy to have recovered. And even this, because corporation tax is only charged on profits, any struggling businesses will, by definition, be unaffected.

“I’m protecting small businesses with profits of £50,000 or less, by creating a Small Profits Rate, maintained at the current rate of 19%.”

“This means around 70% of companies – 1.4 million businesses – will be completely unaffected.

“And third, we will introduce a taper above £50,000, so that only businesses with profits of £50,000 or greater will be taxed at the full rate of 25″%.”

The Chancellor also said businesses can carry back losses of up to £2m for three years and adds that the bank surcharge will be reviewed so combined rate of tax on UK banking sector doesn’t increase significantly from current level.

This announcement was on top of a raft of other measures, including the previously leaked extension of the furlough scheme, and confirmation that
the Hospitality and tourism will continue to enjoy a 5% reduced rate of VAT for a further six months.

Support for the self-employed will also be extended until the end of September.

“When the scheme was launched, the newly self-employed couldn’t qualify because they hadn’t all filed a 2019-20 tax return,” Rishi Sunak says.

“But as the tax return deadline has now passed, I can announce today that, provided they filed a tax return by midnight last night, over 600,000 more people, many of whom only became self-employed last year can now claim the fourth and fifth grants.”

Commenting on the Budget statement, Welsh Conservative Senedd leader, Andrew RT Davies MS said: “At the start of this pandemic, as Conservatives we said we would do whatever it takes to protect jobs and livelihoods – and today’s budget continues that commitment to families, workers and businesses across Wales.

“After the most difficult year in the history of peacetime Britain, the budget extends the support for Wales to save jobs, invests in industry and business, and provides an extra £740 million of funding to the Welsh Government.

“Labour ministers in Cardiff Bay must now use this additional funding to extend the business support for firms across Wales and deliver a council tax freeze to help keep more money in the pockets of hardworking people.

“Our recovery and future economy depends on remaining as one United Kingdom. Only the Welsh Conservatives – working with, rather than against a Conservative UK Government – can succeed in getting things done to rebuild Wales.”

ADDITIONAL  MEASURES

Rishi Sunak confirmed that 95% mortgages will be guaranteed by the government as part of government plans to turn “generation rent into generation buy”.
“I’m pleased to say that several of the country’s largest lenders including Lloyds, NatWest, Santander, Barclays and HSBC will be offering these 95% mortgages from next month, and I know more, including Virgin Money will follow shortly after,” the chancellor says.
“A policy that gives people who can’t afford a big deposit the chance to buy their own home.”

Working Tax Credit claimants will also be given more support for the next six months, with a one-off payment of £500, it has been announced.

A welcome announcement for many families in Wales will be the confirmation that the Universal Credit uplift of £20-a-week will continue for another six months, the chancellor announces

The Chancellor also added that the personal tax thresholds will be frozen.

Hospitality and tourism will continue to enjoy a 5% reduced rate of VAT for a further six months

STAMP DUTY

As part of the spring budget, the Chancellor has just announced that the stamp duty holiday is to be extended, offering a total tax saving on properties costing up to £500,000 and a reduction on homes costing more than that. In addition first-time buyers will have access to government guaranteed mortgages with a deposit of just 5%. Home Insurance Expert at Confused.com Jessica Willock says:
“The new government backed mortgage scheme should give first-time buyers the chance to save on rent payments and take steps onto the property ladder.
“Our research found that more than a quarter (27%) of people said that if they knew of ways to save money when it comes to their homes, they would use them. So, the stamp duty holiday extension can also be seen as an opportunity to give buyers the boost that they need by removing some of the financial pressure attached to a new home.

“But the extension is only temporary, lasting until June 30th. So, whether you’re already in the purchase process or you’re deliberating a move, it’s important to get the ball rolling as the deal must complete by the deadline, otherwise you could face some big bills. If you’re confused about what you may have to pay, use our Stamp Duty Calculator to help you factor in the fees.”
Commenting on the furlough extension, Aude Barral, co-founder of developer recruitment platform CodinGame, said: “There will be a collective sigh of relief from families across the country that the furlough scheme has been extended.

“Millions of people will have been facing the prospect of having little or no income from May, and for the time being that cliff-edge scenario has been avoided. But the problem hasn’t gone away, it’s simply been kicked down the road.

“Furlough is protects salaries, not jobs. Many furloughed workers will still be worried they won’t have a job to go back to when the financial support eventually ends.

“There will be thousands of businesses going to the wall over the coming months and sectors such as hospitality and retail may never fully recover.

“The Government has provided its roadmap out of lockdown, but it’s roadmap out of furlough feels disjointed and a little vague.

“Millions of people are facing unemployment without the transferable skills they need to find a new career.

“There wasn’t enough in the Chancellor’s speech to address the digital skills gap, for my liking. Digital upskilling should be at the forefront of the Government’s plans to unlock the country’s full potential, as that’s where demand is going to be post-pandemic, in a fast changing digital landscape.

“Businesses need to be continually updating their workers’ digital skills to remain competitive, and individuals need the help and support to identify the transferable skills they have and develop new skills to stand the best chance of finding a new job or career.

“We live in a world where new technologies play an increasingly important role in all aspects of business, and demand for digitally skilled employees is only going in one direction.”

 

Business

Pembrokeshire Broad Haven holiday park works refused

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A DEVELOPMENT call for a Pembrokeshire holiday park has been turned down by Pembrokeshire Coast National Park.

In an application to park planners, Broad Haven Holiday Park, through agent Gerald Blain Associates, sought permission for the relocation of a boat storage area, vehicle shed and play area along with rewilding of adjoining fields at Broad Haven Holiday Park, Broad Haven, near Haverfordwest.

The application was supported by local community council The Havens.

However, an officer report recommended refusal.

Detailing the application, it said: “The proposal relates to the extension of an existing static caravan holiday site into adjacent undeveloped woodland to accommodate the relocation of boat storage, a vehicle shed, and a children’s play area, together with associated ecological mitigation measures. No increased pitch numbers are proposed.

“The development site has already undergone some site clearance, resulting in the removal of approximately 1,000 square metres of woodland.”

It went on to say: “The existing site is already intervisible with the coast, and the proposed relocation of boat storage would likely increase its visibility rather than reduce it. Without supporting evidence in the form of a Landscape and Visual Impact Assessment (LVIA) or Zone of Theoretical Visibility (ZTV) demonstrating that the development would be visually contained, the proposal appears contrary to the guidance contained within the SPG and the objectives of Policy 41.

“As a result, the proposed development is considered to detract from the special qualities of the National Park in this location and would be detrimental to the quality and character of the landscape character area in which the site sits, and as such does not comply [with policies].”

The application was refused on grounds including it being sited within previously undeveloped land within a flood zone, a lack of information on potential impacts on biodiversity, and it is “considered to detract from the special qualities of the national park in this location and would be detrimental to the quality and character of the landscape character area in which the site sits”.

 

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Business

Manorbier caravan park call refused by national park

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A CALL to allow a Pembrokeshire caravan park to change part of its site from touring vans to static units without a formal planning application has been refused.

In an application to Pembrokeshire Coast National Park, Norfolk-based Park Farm Opco Ltd, through Chipping Norton-based agent Laister Planning Limited, sought a Lawful Development Certificate for the proposed stationing of static caravans in lieu of touring caravans, year-round, at Park Farm Holiday Park, Manorbier.

A supporting statement accompanying the application said: “The purpose of this application is to confirm that the touring caravans so permitted for year-round occupation on the western field at Park Farm, are capable of being replaced by static caravan pitches without effecting a material change of use. There is no specific number of touring or static caravans which is being sought at this juncture.”

It says Park Farm Holiday Park comprises of two areas, area A having some 61 owner-occupied static caravans, and area B used for touring caravan pitches and tents.

Planning permission was originally granted way back in 1956 for the caravan site, on a temporary basis, a Lawful Development Certificate for an existing use for the use of the site for up to 70 static caravans granted in December 1998, mainly covering area A.

The statement said the lawfulness of siting caravans year-round was previously confirmed by the park in 2024 “use as a campsite for touring caravans (not including twin-unit static caravans) and tents which shall be occupied for holiday use only and used as temporary, non-permanent units on a year-round basis”.

Of the proposals, it said: “The site is currently used for the stationing of touring caravans all year round. Most of the caravans on the site are stationed on what is called a ‘seasonal’ basis, where the owners leave them permanently stationed on the site and use them as holiday homes, paying an annual ‘seasonal’ fee.

“The proposed use of the site is to replace the permanently stationed touring caravans with permanently stationed static caravans. No specific number is provided, as no number is provided in any of the existing certificates, but it is anticipated that the total number of caravans in the application site will inevitably be reduced as the caravans are generally larger.

“There would be no other change in the way the site is operated, and the intention is to use the caravans for holiday purposes.”

An officer report recommending the certificate of lawfulness for the change be refused, saying it was “not satisfied that the evidence accompanying the application is sufficient to establish that the proposed use would be lawful”.

It said that while lawfulness certificates for tourers had been granted “it is considered that the siting of single-unit statics in lieu of those tourers, as now proposed, would be inconsistent with the lawful use of the site, and cannot be considered lawful in the same way,” adding “the changes proposed would result in a definable character change to the site of a magnitude that would be sufficient to amount to a material change of use requiring planning permission”.

The application for a certificate of lawfulness was refused on the grounds “the proposed use of the site would represent a material change of use requiring planning permission for which no permitted development rights exist, meaning a specific grant of planning permission is needed in order for the scheme to proceed”.

 

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Business

Pembrokeshire Paddle West South Quay boat shed approved

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A PADDLEBOARDING and canoeing company’s call for an extension to a boat shed at Pembroke’s South Quay, below its historic castle, has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, G Booth of Paddle West CIC, through agent James Dwyer Associates, sought permission for an extension to the stone-built boathouse, adjacent to the cliff on South Quay fronting the Mill Pond, Pembroke.

A supporting statement said: “It is intended to erect a single storey ‘lean-to’ building, or ‘shed’ for the storage of boats, such as canoes and kayaks, and related equipment, on a vacant space adjacent to the existing stone-built boathouse.”

It added: “The boathouse and the intended adjacent boat storage shed is located, as is to be expected, in close proximity to water, the Mill Pond. The Mill Pond is the main area of activity for Paddle West, a Community Interest Company, providing boating activities, kayaking, canoeing and paddle boarding, frequently for young people and families.”

It went on to say: “It is intended that the structure would be lightweight, erected on the exiting hard standing. The ‘shed’ would be used for the storage of boats and related equipment.”

With regard to the historic setting, it added: “Although the stone-built boathouse appears not to be listed, it is recognised that the walls above are listed and together they are a piece.

“Accordingly, through form and external materials proposed, timber cladding and profile sheet roofing, the aim is to ensure that the structure would be subservient and muted and not detract or compete with the visual aesthetic of the boathouse or historic walls. In effect the addition would blend into the background.”

The application, supported by Pembroke Town Council, was conditionally approved by county planners.

The boathouse is sited near to the new Henry Tudor Centre in South Quay, which is due to open in Spring 2027.

The centre, expected to receive around 30,000 visitors a year, will tell the story of Henry Tudor, son of Pembroke, his Welsh ancestry and his impact on our national story, Welsh culture and our wider British heritage.

The restored derelict South Quay buildings will also house a new library and community café, and a healthcare, social services and supported employment facility in the adjoining premises.

 

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