Budget Update - 3 March 2021

Today, Chancellor Rishi Sunak MP announced his Budget which includes a range of schemes and measures to support the economic recovery and stimulate growth of our future economy.

The announcements included £135 million to progress the A66 Trans-Pennine Upgrade Project – which is fantastic news for Cumbria!

One of the most anticipated announcements was the selection of the successful bids for Freeport status. Freeports will benefit from tax incentives and relaxed planning rules to stimulate economic growth and activity.

Cumbria was one of around 30 areas which submitted bid for Freeport status, but sadly was not chosen as one of the eight locations announced today.

The eight successful Freeport locations are:

• East Midlands Airport;
• Felixstowe & Harwich;
• Humber;
• Liverpool City Region;
• Plymouth;
• Solent;
• Thames; and Teesside

For the housing sector, it was announced that stamp duty holiday on the first £500,000 of a property’s value will be extended until 30 June 2021. After this date, the starting rate of stamp duty will be £250,000 until the end of September. Stamp duty will then return to the usual level of £125,000 on 1 October 2021.

It was also announced that the Government will introduce a Mortgage Guarantee Scheme enable buyers to obtain mortgages for 95% of the value of a property, which is supported by a number of major lenders.

He also announced further packages of financial support for businesses which have been forced to close as a result of the pandemic and extended the furlough scheme to support the reopening of our town centres, hospitality venues and theatres and entertainment venues. Additional funds such as the Town Deals Fund and a £150 million Community Ownership Fund to help protect assets important to local communities.

We expect further details of the various schemes and initiatives to be announced in the coming weeks.

Read the package of measures in full here: https://www.gov.uk/government/news/budget-2021-what-you-need-to-know