12 key points from Rishi Sunak's Spring Budget speech

Chancellor Rishi Sunak has laid out the Government's spending and taxation plans in his crucial Budget speech, announcing a raft of measures including a corporation tax hike, new freeport locations and the Treasury's move north.

All eyes were on Mr Sunak when he took to the despatch box following Prime Minister's Questions in the House of Commons for the second Budget of his tenure.

He announced a flurry of new measures including a new Treasury site in Darlington, new freeports in eight locations across the UK, and £1bn in funding for 45 new Town Deals.

You can follow live reaction from our live blog team on budget day.

Here are key announcements in the Spring Budget:

Extending the furlough scheme

The furlough scheme, officially known as the Job Retention Scheme, is to be extended until September.

It means the Government will continue subsidising the wages of people throughout the roadmap for ending lockdown, and beyond. The Government hopes to end the final stages of the lockdown on June 21.

Employees will continue to get 80% of their wages. But businesses will be asked to make a contribution from July.

The government will ask for a contribution of 10% in July and 20% in August and September towards the hours their staff do not work.

Mr Sunak also announced that more than 600,000 people, many of whom became self-employed in 2019-20, will now be able to claim direct cash grants under the Self-Employment Income Support Scheme (SEISS).

Universal Credit

The Universal Credit uplift of £20 a week will continue for a further six months, "well beyond the end of this national lockdown", said Mr Sunak.

Equivalent support for working tax credit claimants, who will get a one-off £500 payment.

He highlighted an announcement previously made that the National Living Wage is to to rise to £8.91 from April.

Help for employers and jobseekers

A "plan for jobs" will include £126 million of new funding for 40,000 more traineeships, and giving employers a £3,000 cash payment for every new apprentice they take on.

A £520 million "Help to Grow" fund for smaller businesses will provide world-leading MBA style management training, expert technology advice and discounted software.

Help for pubs, shops, sports, arts and leisure

The Chancellor announced an extension of the business rates holiday for retail and hospitality firms for three months until the end of June before shifting to a two-thirds discount for the rest of the year.

He also extended the VAT cut for tourism and hospitality businesses - including pubs, coffee shops, staycations and attractions as the Prime Minister prepares to reopen Britain for business. – The 5% reduced rate of VAT for the tourism and hospitality sector will be extended for six months to the end of September, with an interim rate of 12.5% for another six months after that.

A £5 billion "Restart Grant" scheme will help firms in retail, hospitality, accommodation, leisure and personal care get back on their feet as the lockdown ends and they are allowed to re-open.

A £300 million sports recovery package will help sports clubs get back on their feet, with spectators due to return to grounds as lockdown ends. The Chancellor, a cricket fan, has said English cricket is one of the sports expected to benefit.

The Chancellor gave museums, theatres and galleries in England an extra £408m package of financial support so they can move towards reopening.

And he announced the legal limit on contactless payments will more than double to £100, in a move he said would help retailers.

Help for home-buyers

A new mortgage guarantee scheme was announced. First time buyers or current homeowners looking to buy a house of up to £600k will need a deposit of just 5% to secure a mortgage. Under this scheme, the Government will offer lenders the guarantee they need to provide mortgages that cover the other 95%, subject to the usual affordability checks.

Cuts to stamp duty will be extended. He confirmed that the £500,000 nil rate band will now end at the start of July, rather than March 31.

The nil rate band will be £250,000 until the end of September and return to the usual level of £125,000 from October 1.

Billions of pound for 'green' power and transport

Billions of pounds will be offered to help fund infrastructure projects. The Chancellor announced an initial £12 billion of capital and £10 billion of government guarantees for the UK Infrastructure Bank. The Bank will offer a range of products, including equity, loans and guarantees, to help private businesses find major infrastructure projects, in sectors such as renewable energy, carbon capture and storage and transportation.

Saving local pubs

A £150 million Community Ownership Fund will provide community groups with grants of up to £250,000 - or £1 million in exceptional cases - to buy struggling local facilities such as a pub or sports club.

Fuel and Beer Duty

Mr Sunak said the planned increases of duties on spirits such as Scotch whisky, wine and beer will be frozen for the second year in a row. He also says the planned increase in fuel duty has also been cancelled.

Tax

Rishi Sunak said the Government will not raise the rates of income tax, national insurance, or VAT - there had been speculation he might take this step.

He confirmed that there will be a freeze in personal tax thresholds.

There will be an increase in the Personal Allowance to £12,570 in April 2021, which will be maintained at that higher level until April 2026.

The rate of corporation tax, paid on company profits, will increase to 25% in April 2023, the Chancellor said, but small businesses with profits of £50,000 or less will continue to be taxed at 19%.

Treasury North

One of a few announcements to be leaked out before the Budget speech today, the Chancellor confirmed that a new Treasury North campus will be created as part of the government's plans to 'level up' the country.

It is hoped the move could create hundreds of jobs.

There will also be a new UK Infrastructure Bank set to be established in Leeds.

Freeports

The sites for the eight freeports in England have been revealed as part of the Chancellor’s Budget.

Pledged in the Conservative Party 2019 manifesto, Rishi Sunak announced that East Midlands Airport, Felixstowe and Harwich, the Humber region, the Liverpool City Region, Plymouth, Solent, Thames and Teesside are all set to benefit from the post-Brexit status.

Mr Sunak said the “special economic zones with different rules to make it easier and cheaper to do business” would come with simpler planning, cheaper customs – with favourable tariffs, VAT or duties – and lower taxes, with “tax breaks to encourage construction, private investment and job creation”.

Devolved administrations

There was more funding for the devolved administrations, with £1.2 billion for the Scottish Government, £740 million for the Welsh Government, and £410 million for the Northern Ireland Executive.

What are your thoughts on the Spring Budget - has enough been done to support jobs and the economy or should we be more worried about national debt - have your say in the comments section below