Chancellor of the Exchequer Rishi Sunak delivered the Government’s first budget since the election.
As expected many of the announcements focussed on providing support to the economy in dealing with coronavirus.
Key announcements
- Coronavirus - measures to support SME businesses paying increased Statutory Sick Pay, reduction of business rates for small retailers, support from HMRC on tax and a temporary loan scheme via the British Business Bank.
- Business rates – launch of the Government’s review into business rates, with a consultation to be launched soon and a final report in the Autumn 2020 Budget.
- National Minimum Wage - a possible further increase in the Minimum Wage from 2024.
- Tax – Entrepreneurs Relief to be reformed and red diesel banned for some sectors, excluding agriculture.
- Tree planting – a £640 million “nature for climate” fund launched to support tree planting and peatland restoration.
- Rural connectivity - £5 billion investment into the Shared Rural Network, which aims to increase mobile and broadband coverage in rural areas.
James Clark, Director of Policy and Communications at the Horticultural Trades Association (HTA) comments: “(The) budget provides support to small and medium-sized businesses (SMEs), including in horticulture, to minimise the impact of coronavirus.
“Measures including assistance with Statutory Sick Pay for SMEs and the abolition of business rates for small businesses for 2020 are all helpful short term measures for our members in dealing with the immediate impact of coronavirus. The devil will be in the detail of how members will fully benefit.
“With regard to medium and longer-term business support we welcome the long-awaited review of business rates and we will ensure our members’ views are communicated to Government when further detail is available.
“It is positive to hear that the Government is making a further commitment to their environmental pledges with the announcement of plans to plant 30,000 trees over the next 5 years. Support for nurseries is critical to build and enhance UK production capabilities for plants as well as trees to help deliver the Government’s ambition to create a greener Britain.”
Helen Griffiths, chief executive of Fields In Trust, pointed out that as a former Parks Minister the Chancellor has first-hand knowledge of the industry’s requirements.
“So we're reassured by the fact that the new Chancellor is knowledgeable and understands the benefits that local parks have on communities,” she said. “For example, we welcome the commitment to incentivise new home building on brownfield sites and an £8 million commitment to support football pitches. However, we also note the Chancellor's commitment to "spend £27 billion on tarmac" in creating over 4,000 miles of new roads.
“We hope that these new routes will not result in any loss of parks or green spaces. We also await details of the Budget promise of comprehensive reforms to "bring the planning system into the 21st century". Any review of the planning system must ensure communities have a say in opposing unwanted development in their local parks and green spaces.
“In recent days the global financial market uncertainty, following widespread fear of a coronavirus pandemic, has resulted in a budget focussed on international concerns – not only the response to the UK domestic picture which we have been expecting since the General Election, having been extensively trailed by government ministers including the Chancellor's predecessor, Sajid Javid.
“The Budget launches the Comprehensive Spending Review 2020, which will set out the overall level of public spending over the next five years. Between now and the conclusion of the CSR in July we will be presenting the case for appropriate investment in parks and green spaces as a key feature of local public services which contribute to Government priorities on health, mental wellbeing and community cohesion. A Budget focussed on "levelling-up the regions" had been widely anticipated.
“By definition, this recognises that the start point is one of difference: not all communities have the same access to public services including parks and green spaces. So these spaces must be valued for the health and wellbeing benefits they contribute to the communities that cherish them, not simply what they cost to maintain.”
