It can provide flexible low carbon power and decarbonise many industrial processes, whilst also offering the option for negative emissions at scale. The Budget announces a CCS Infrastructure Fund to establish CCS in at least two UK sites, one by the mid-2020s, a second by 2030. Using consumer subsidies, the government will also support the construction of the UK’s first CCS power plant. HM Treasury will also publish two reviews this year – one into the economic costs and opportunities of reaching net zero, the other led by Professor Sir Partha Dasgupta into the economics of biodiversity. To empower consumers and boost competition, the government will accept all six of the Furman Review’s[footnote 55] strategic recommendations for unlocking competition in digital markets. The Budget announces £242 million to fund a further four City and Growth Deals across Scotland, Wales and Northern Ireland.
This will ensure that individuals can be confident that updating existing skills, or maintaining pace with technological advances or changes in industry practices, are allowable costs for tax purposes. The government is also committed to unlocking the full potential of Open Banking-enabled payments and will seek to legislate next year to support this. The government’s intention is for the new regulatory framework to require firms beyond the largest banks to participate in a sustainable and equitable https://intuit-payroll.org/kruze-consulting-accounting-cfo-tax-hr-for/ commercial model through which the technology and necessary consumer protections will be developed, and with appropriate regulatory backstops. In line with the Review’s central recommendation, the government will publish a National Payments Vision next year. Building from the review’s findings, this will include consideration of priorities for UK payments and, working with the Payment Systems Regulator and the Bank of England, will consider the role of the New Payments Architecture.
24 Trade and investment
Western Gateway Independent Economic Review – The government will support the Western Gateway, a strategic economic partnership across south Wales and the west of England, to oversee an independent economic review to identify long-term economic opportunities and challenges for the region. British Library at Leeds and Boston Spa – The Budget makes available up to £95 million for the British Library site at Boston Spa. This investment will underpin the Library’s plans to open a major new site in the centre of Leeds, creating a new British Library of the North. The government will provide a £25 million Heritage Fund to the West Yorkshire Combined Authority to support the Library in establishing this new site. Natural Environment Impact Fund – The government will commit up to £10 million to stimulate private investment and market-based mechanisms to improve and safeguard our environment. Future Homes Standard – The government is committed to reducing emissions from homes and to helping keep household energy costs low now and in the future.
Green Gas Levy – The government will consult on introducing levy-funded support for biomethane production to increase the proportion of green gas in the grid. Support for at least one CCS power station by 2030 – Using consumer subsidies, the government will support the construction of the UK’s first privately financed gas CCS power station. New build homes’ connectivity – The Budget announces that DCMS will shortly publish a consultation response which 2023 Consumer Products Industry Outlook Deloitte US will confirm the government’s intention to legislate to ensure that new build homes are built with gigabit-capable broadband. Youth Investment Fund – The Budget confirms £500 million for a Youth Investment Fund to build new youth centres, refurbish existing youth facilities and provide high-quality services for young people across the country. The government expects that at least 800,000 young people will benefit from new or upgraded youth facilities.
Budget 2020
Carbon markets working group – Dame Clara Furse will establish a new group with the aim of positioning the UK and the City of London as the leading global market for high quality voluntary carbon offsets, which can play an important role in addition to international efforts to reduce carbon emissions. The working group will draw on the UK’s financial expertise and entrepreneurship and build on the work of crossing-cutting initiatives such as the Taskforce for Scaling Voluntary Carbon Markets. Licensing bodies will have to obtain confirmation that an applicant has completed the check before deciding on their renewal application, making it more difficult for traders to operate in the hidden economy. The government remains committed to seeking views on the wider application of tax conditionality. OECD Mandatory Disclosure Rules – The government will consult on the implementation of OECD rules[footnote 68] to combat offshore tax evasion by facilitating global exchange of information on certain cross-border tax arrangements. VAT threshold – The VAT registration and deregistration thresholds will not change for a further period of two years from 1 April 2022, giving businesses certainty.
They allow policy to meet the economic demands of today while ensuring that borrowing and debt remain under control. Chart 1.8 shows that public sector net debt has stabilised after the sharp rise driven by the financial How to record prepaid insurance Example crisis and is expected to be broadly stable across the forecast period. The rules also provide the flexibility to respond fully to near-term shocks to the economy and public finances such as from COVID-19.
5 Investment-led recovery
The government is investing in HMRC’s ability to support individuals and businesses who are unable to pay their tax debts by increasing HMRC’s debt management resource. This will allow HMRC to better target their debt collection activity, pursuing those with tax debts that can afford to pay, and providing support to those that are temporarily unable to pay. The government is also taking action against those who continue to bend or break the rules, by reducing opportunities for tax fraud in the construction industry and taking strong action against promoters of tax avoidance. In June the Chancellor commissioned the National Statistician to run a review to improve the measurement of public sector productivity. This will deliver early results in Spring 2024 with further improvements on a regular basis after this. Public Service Pension Schemes (PSPS) are in the process of finalising outcomes of the 2020 valuations, which will determine employer contribution rates for PSPS from April 2024 onwards.
OECD reporting rules for digital platforms – The government will consult on the implementation of OECD rules[footnote 67] that will require digital platforms to send information about the income of their sellers to both HMRC and the seller themselves. This will help taxpayers in the sharing and gig economy get their tax right, and help HMRC detect and tackle non-compliance. Personal Allowance and higher rate threshold (HRT) – The income tax Personal Allowance will rise with CPI as planned to £12,570 from April 2021 and will remain at this level until April 2026. The income tax HRT will rise as planned to £50,270 from April 2021 and will remain at this level until April 2026.
12 The fiscal framework
The government is also continuing to progress its commitment to deliver East West Rail, with a statutory consultation due next year and, as part of Network North, has committed to providing £2.5 billion for a West Yorkshire mass transit system. Subject to the business case, the government will also provide funding for a rapid transit bus network in Thamesmead, as part of its vision for a new Docklands 2.0. The authorised surplus repayment charge will also be reduced from 35% to 25% from 6 April 2024.
- Oil and Gas Fiscal Regime – The government has announced an oil and gas fiscal regime package covering the short, medium- and long-term.
- This Charter sets out the standards that Signatory Lenders – who represent over 90% of the UK mortgage market – will adopt when helping their customers.[footnote 91] This offers mortgage holders greater flexibility in managing their finances and offers protections against repossession.
- Total relevant spending is forecast to be within the welfare cap and margin, and so the fiscal rule is judged to have been met with £3.4 billion of headroom.
- The government has had to take difficult decisions to restore the public finances in the wake of the economic shocks caused by COVID and Putin’s illegal invasion of Ukraine.
- While the unemployment rate is expected to peak in the fourth quarter of this year, at 6.5%, this is 1 percentage point below the peak in the OBR’s November forecast, with the OBR pointing to the extension of the CJRS and additional fiscal support as being largely responsible for this reduction.