2020 Budget - what to expect

11 Mar 2020

Chancellor Rishi Sunak will deliver the 2020 Budget speech today at 12:30pm. We will keep you up to date on the key Budget announcements and supply a full summary, which will appear on our website tomorrow morning.

The 2020 Budget is the Chancellor's first and the first to be delivered following the UK's departure from the EU in January.

Speculation is rife that the Chancellor will announce additional funds to help combat the spread of coronavirus. Speaking recently, Mr Sunak stated that the government will give the NHS 'all the support it needs' to minimise the spread of the virus, and that it will consider options to provide 'temporary support to small businesses'.

Additionally, the Chancellor is likely to abolish the so-called 'tampon tax', reducing the VAT rate on sanitary products to zero. The government was previously unable to change the VAT rate applicable to sanitary products because of EU rules.

Some experts expect the Chancellor to abolish Entrepreneurs' Relief (ER), which gives access to a 10% rate of capital gains tax (CGT), subject to a lifetime limit of £10 million. The Institute for Fiscal Studies (IFS) has advocated the scrapping of ER. However, the Federation of Small Businesses (FSB) has called for the government to reform the scheme, rather than scrap it.

Meanwhile, many believe that Mr Sunak will make announcements on faster broadband; extra funding for individuals affected by the floods caused by storms Ciara, Dennis and Jorge; and funding to help tackle the climate change crisis.

The Chancellor is not expected to alter income tax, VAT or national insurance after the Conservative Party pledged not to raise these in its General Election manifesto.

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