Budget 2021 at a glance
Here are the key points of Rishi Sunak’s budget today:
- The Office of Budgetary Responsibility (OBR) predicts the economy will return to pre-Covid levels by mid-2022, six months earlier than before.
- The forecast OBR economy will grow 4 percent this year, 20.3 percent in 2022, then 1.7 percent, 1.6 percent, and 1.7 percent by 2025
- Unemployment is expected to peak at 6.5 percent, compared to 11.9 percent forecast in July 2020, which means 1.8 million fewer unemployed people.
- The vacation program was extended to the end of September below the current 80 percent of the salary rate.
- Employers asked for 10 percent in July and 20 percent in August and September.
- Support for self-employed also lasts until September.
- The £ 20 Universal Loan increase will remain in place for an additional six months.
- Apprentice grants for employers doubled to £ 3,000.
- £ 5 billion fund for restart grants for businesses. Retailers will receive up to £ 6,000 per location starting April. Hospitality and Leisure will open later and can go as high as £ 18,000.
- New corporate rehabilitation loan program from £ 25,000 to £ 10 million, 80 percent guaranteed by the government.
- Business rate vacation valid until June and discounted for the remaining nine months of the 2021-22 financial year.
- The 5 percent sales tax rate for the hospitality industry was extended to September, then at 12.5 percent to April 2022, before reverting to the regular 20 percent tax rate.
- Stamp duty leave was extended to June for homes up to £ 500,000 and then gradually reintroduced.
- Mortgage guarantee system for those with 5% down payment to boost home sales.
- The UK’s total public spending bill is estimated at £ 407 billion.
- Britain has borrowed £ 355 billion – 17 percent of GDP – the highest since World War II.
- No income tax, VAT or social security increases.
- The tax-free income threshold will rise to £ 12,570 next year and then freeze through 2026.
- The higher rate threshold rises to £ 50,270 next year and will then be frozen until 2026.
- Corporate income tax rose to 25 percent in 2023.
- Small profit rate of 19 percent for small businesses.
- Inheritance tax thresholds, lifetime annuity allowance and annual investment income tax exemption will be maintained at current levels through April 2026.
- Alcohol tax frozen.
- Fuel tax frozen.
Rishi Sunak announced that income tax thresholds will be frozen through 2026 and corporation tax will rise from 2023 today when he announced the government is spending “an unimaginable” £ 407 billion on Covid’s response.
In a crucial budget that will set the course for the country for years, the Chancellor said he knew that the measures to increase revenue were “unpopular”.
However, he insisted that the “do nothing” alternative was not correct, pointing out that increases will not be implemented until the recovery is well established.
Mr Sunak hailed the impact of the vaccine’s launch, saying the government watchdog now expects the economy to return to pre-pandemic levels by mid-2022 – six months earlier than previously thought.
Growth this year is set to rise 4 percent after the vaccine’s rapid rollout, and unemployment is now likely to peak at 6.5 percent instead of 11.9 percent. That means 1.8 million fewer people will lose their jobs, Sunak said.
However, he warned that the economy will still be 3 percent smaller than it should have been, and pointed to a looming bill for taxpayers.
“When the next crisis comes, we have to be able to act again,” he said. A one percentage point increase in interest costs on the UK’s mountain of debt of £ 2.1 trillion would cost the UK £ 25 billion in maintenance costs.
In a spate of huge spending commitments, Sunak said it was extending the £ 53 billion vacation program for another five months, keeping self-employed and business bailouts.
The weekly top-up of the Universal Loan of £ 20 remains for an additional six months, along with VAT and business rate relief for hospitality, leisure and tourism.
Efforts have been made to get people shopping, including raising the contactless payment limit from £ 45 to £ 100, freezing alcohol duties, and ending the idea of raising fuel taxes.
But Mr. Sunak warned that the generosity – on top of the £ 280 billion already paid out by the Treasury Department – must come to an end. Including the expenditure announced in the budget last year, this will total £ 407 billion by the end of next year.
Corporate tax will increase from 19 percent to 25 percent in 2023, although there will be breaks for smaller businesses that could bring in £ 20 billion a year. The basic and higher income tax rates will be frozen starting next year, putting thousands more people in higher tax rates.
He put forward a three-part plan for restoring and repairing the shattered public finances – and made Britain a “science superpower”.
An important measure to stimulate growth is a tax deduction for companies investing in the UK. This means they can apply for 130 percent relief of the value of their investment.
Eight new free ports will be set up across England to stimulate economic growth.
Mr. Sunak vowed to continue using the state’s full “fiscal firepower” to protect jobs and livelihoods.
I said I would do whatever it takes. I did it and I will do it, ”he said. ‘We will continue to do everything we can to support the British and businesses in this moment of crisis …
“As soon as we are on the recovery path, we need to start fixing public finances.”
Mr Sunak said 700,000 people are already unemployed due to the pandemic and it will take a long time for the whole world to recover.
In his budget, Rishi Sunak hailed the impact of introducing the vaccine, saying the government watchdog now expects the economy to return to pre-pandemic levels by mid-2022 – six months earlier than previously thought
Rishi Sunak performed the traditional Chancellor pose at 11 Downing Street as he walked to the House of Commons today
Rishi Sunak posed with his treasury team on Downing Street today – although they didn’t seem two meters apart
The cost of the government’s response to the coronavirus has risen dramatically since Rishi Sunak presented his first budget in March last year
Official figures released last month showed that the national debt was over £ 2.1 trillion in January
Public debt could be close to £ 400 billion this fiscal year and is expected to remain high for years to come
Mr. Sunak stressed that the government would not increase income tax rates, social security or sales tax – which would have violated a manifest promise.
But he added, “Instead, our first step is to freeze personal tax thresholds.”
The Chancellor continued: “We will of course keep our promise to raise it back to £ 12,570 next year, but we will then keep it at this more generous level by April 2026.
“The higher rate threshold will also be raised to £ 50,270 next year and will then remain at that level for the same period.”
Mr. Sunak said the corporate tax rate on corporate profits will rise to 25 percent in 2023.
He told MPs: “Even after this change, the UK will still have the lowest corporate tax rate in the G7 – lower than the US, Canada, Italy, Japan, Germany and France.”
He added, “First, this new higher rate won’t take effect until April 2023, long after the OBR expects the economy to recover. And even then, since corporation tax is only levied on profits, by definition, it does not affect any company in trouble.
Second, I protect small businesses with profits of £ 50,000 or less by creating a small profit rate that is held at the current rate of 19 percent. This means that around 70 percent of companies – 1.4 million companies – remain completely untouched. ‘
Mr Sunak said a £ 50,000 taper is also being introduced to ensure that only companies with a profit of £ 250,000 or more will be taxed at the full 25 percent tax rate.
He told MPs, “That means only 10 percent of all companies will pay the full higher rate. Yes, it’s a tax hike on corporate profits, but only on the larger, most profitable companies – and not for two years.
Mr. Sunak also said, “Over the next two years, I will be making the tax treatment of losses significantly more generous by allowing companies to carry losses back for three years, which will provide a significant cash flow benefit.
‘This means businesses can now claim additional tax refunds of up to £ 760,000. And due to the current bank surcharge of 8%, the implicit overall tax rate for banks would be too high. We will therefore be reviewing the surcharge to ensure that the combined tax rate for the UK banking sector does not increase significantly from current levels – and to ensure that this important industry remains internationally competitive. ‘
The holiday was slated to close in late April, with warnings of a wave of layoffs as affected companies still cut off loose workers.
With today’s renewal, the program, which costs around £ 5 billion a month, will go well beyond the official target for ending the lockdown on June 21, raising questions about whether ministers expect to lift all restrictions by then.
The self-employed will also benefit from another round of support that pays them 80 percent of the profit.
Surprisingly, the system is being expanded to include 600,000 “excluded” workers who had not previously qualified because they had only started trading in 2019.
The Chancellor is also expected to extend the £ 20 monthly top-up on Universal Credit for a further six months.
The current VAT cut for hotel and tourism companies is expected to be extended until the end of summer.
And a business-rate vacation for badly hit sectors will continue beyond the current deadline at the end of this month.
Mr. Sunak is also starting a £ 100 million task force to tackle vacation fraud, which is estimated to cost up to £ 5 billion.
A government report uncovered by MailOnline this week found the government has already lost up to £ 52 billion a year to fraud – more than the defense budget – and the problem may have reached epidemic proportions during the pandemic.
The contactless payment limit will more than double to £ 100.
The changes will increase the legal limit for contactless payments from £ 45 to £ 100.
The government said the change was made possible by the UK’s exit from the European Union, which means we are no longer bound by EU rules on the maximum contactless payment limit, which is currently set at £ 45.
Mr Sunak said, “If we start opening up the UK economy and people get back on the high street, raising contactless limits will make it easier than ever for people to pay for their purchases and give retail a welcome boost that protects jobs and drives growth. ‘
In addition to the financial package, the government’s OBR watchdog is providing the government with a key assessment of the economic outlook, with the hope that the swift introduction of vaccines has cut the black hole, which needs to be filled with tax hikes and spending cuts, below the eye-catching £ 40 billion, experts feared .
A Tory civil war is already raging over the prospect of tax hikes. High-ranking figures like Lord Hammond and Lord Hague say action needs to be taken to balance the books, but others warn it will stifle the recovery.
The prestigious IFS think tank said this morning there should be no tax hikes this year, while former OBR chief Robert Chote said the UK is in “a phase of battlefield medicine for the economy” and the deficit should not be addressed aggressive’.
Mr Sunak spoke in front of the cabinet this morning on the contents of his budget before announcing the measures to MPs at 12.30 p.m. But he has been targeted by spokesman Lindsay Hoyle for briefing and cunning public relations, including “rush” following the Commons’ declaration to hold a press conference at # 10.
In a tough message to the cabinet this morning, Mr. Sunak said, “We have to be honest with ourselves and the country.” “We are taking out exceptional amounts of credit – that is only the level of the war,” he told ministers, adding, “as a Conservative government we know that we cannot ignore this problem and that it would not be right or responsible for it to do.”
Repeating the Chancellor’s grim words about the need to balance the cabinet books this morning, Mr Johnson said the budget action was “only possible over a long period of time due to the prudence of the Conservative government,” meaning the country ” gone into crisis with strong public finances.
The Prime Minister said the budget was planning a course to “make the most of our future post-Brexit and as a scientific superpower”.
The Queen spoke to Mr. Sunak by phone last night instead of the traditional audience on the eve of the household.
The Treasury Department shared a photo of the Chancellor during the call.
Mr. Sunak’s decision to continue until the end of September, three months after all restrictions were lifted, will raise eyebrows.
Chief Whip Mark Spencer was physically on Downing Street this morning to attend the Cabinet’s pre-budget meeting
The vacation program, which cost the UK £ 53 billion, will be extended to the end of September as Rishi Sunak promises to do whatever it takes to get the economy back on its feet. In the picture, the Chancellor called the Queen before the budget last night
The Queen spoke to Mr. Sunak by phone last night instead of the traditional audience on the eve of the household. The Treasury Department shared a photo of the Chancellor during the call
The Bureau of National Statistics said the economy fell 9.9 percent for all of 2020 – the worst annual performance since the great frost that devastated Europe in 1709
The UK appears to have avoided a double-dip recession after growth remained positive in the fourth quarter of last year
Mr Sunak briefed Cabinet on the contents of the budget this morning before going to the Commons to share the plans with MPs
The spokesman slams Sunak’s budget PR drive
Sir Lindsay Hoyle has criticized Rishi Sunak’s PR campaign before the budget, telling the Chancellor that the policy should be announced to MPs first because “tradition matters”.
Much of Mr. Sunak’s much-anticipated financial statement was pre-shared with the press by the Treasury Department.
When Boris Johnson pointed out the upcoming announcements at PMQs, Sir Lindsay remarked ironically, “I think I already know most of it.”
In a previous interview, the Commons spokesman said “at one time the budget was never disclosed to the media”.
He said it was “important that people hear it on the floor of the house first” and suggested that the approach is something we need to return to.
Meanwhile, Sir Lindsay said he expected Mr. Sunak to “get through” all MPs’ questions about the budget and not to “run away” to hold his pre-announced press conference at 5pm.
According to Treasury sources, a cut-off should be avoided as some companies are back in trading for the first time in more than a year.
“They don’t want cliffs and we listened,” said a source. However, the Treasury Department also acknowledged that the extension would be a “cushion” should the reopening be delayed.
The cost of the system is expected to decrease after the economy reopens.
Vacation workers are now paid 80 percent of the state’s wages, up to £ 2,500 a month, with employers only paying social security and pension contributions.
From July onwards, companies will also have to pay 10 percent of wages, as the state’s share will drop to 70 percent – and in August the numbers will change again to 20 percent and 60 percent respectively.
At the end of January, almost five million people were on leave – twice as many as in October, but well below the high of almost nine million last May.
As of last week, the program had cost £ 53.4 billion.
Business leaders have welcomed the new support. UK Hospitality’s Kate Nicholls called it a very positive move.
And CBI chief economist Rain Newton-Smith said, “The expansion of the program will leave millions more in the works and will give companies a chance to catch their breath if we carefully end the lockdown.”
Paul Johnson, director of the Institute for Fiscal Studies (IFS), said he did not expect any tax hikes this year.
He told BBC Radio 4’s Today, “The big picture is we’ve had the most terrible, very deep recession with a tremendous amount of government support, so in some ways it didn’t feel like it.
‘There are some suggestions and reports that the OBR (Office for Budget Responsibility) forecasts for the next few years will be more optimistic than they were in November and if so, if it looks like the economy has a good chance If it bounces back well, some of his decisions will be a bit easier.
“Because think about what the Chancellor doesn’t really think about: How can I repay the debt I’ve made in those few years?”
“Much more, if the deficit remains large in the years to come, what do I have to do to close this hole?” And when the economy recovers, there will be fewer holes to fill.
“But there will still be a hole and that will mean some tax hikes, I expect, but not this year – the next two or three years.”
Sir Robert Chote, former OBR chairman, warned against moving too “aggressively”.
“Most economists would accept that if the level of government debt rises, you don’t want to try and reverse this very quickly or very aggressively, so borrowing temporarily increases, which increases your debt stock,” he said.
“One of the lessons people seem to have learned from the post-financial crisis experience is that even if you have a larger structural budget deficit, if you weaken the recovery and make the situation worse, you don’t want to be too aggressive.
“But that does not mean that tax decisions cannot be made if the structural budget deficit increases permanently from the effects on the economy and you also decide that a larger state should emerge from it. ‘
He added that the country was in a “phase of battlefield medicine for economic policy” and that a “broader brush approach” needed to be accepted than under less extreme circumstances.
Union leader Sir Keir Starmer will respond to Mr Sunak’s budget in the House of Commons today – and faces disputes within his own party over his actions.
Sir Keir was beaten by the left after he said taxes shouldn’t go up quickly, while the Labor Bible, which the New Statesman complained that the party under his leadership “has no idea what it wants”.
The Chancellor promises more than £ 400 million in additional money for the difficult cultural sector
Rishi Sunak pledged £ 410 million today to support the struggling cultural and arts sectors to help them get back on their feet after the lockdown.
The Chancellor has announced a £ 300 million increase in the government’s cultural restoration fund, bringing total funding to £ 1.87 billion.
Meanwhile, an additional £ 90 million has been allocated to help the country’s national museums and other cultural organizations stay afloat as coronavirus curbs are eased in the coming months.
Around £ 20 million are also being pumped into new cultural projects in regional cities.
The Treasury Department said the Culture Recovery Fund is the largest one-time investment in British culture, currently valued at £ 1.57 billion.
The museum and other cultural facilities were hammered during the coronavirus crisis. The British Museum in London is pictured in 2017
Mr. Sunak said, “During the crisis we have done everything we can to support our world renowned arts and culture industries and it is only right that we continue to build on our historic support package for the sector.
“This industry is a major engine of the economy, employing more than 700,000 people across the UK. I am committed to ensuring that the arts can captivate audiences for the months and years to come.”
The Culture Recovery Fund was launched last July and has so far provided more than £ 800 million in grants to approximately 3,000 organizations.
Cricket and other summer sports benefit from a cash injection of £ 300 million
Rishi Sunak confirmed today that a new £ 300 million sports recreational package will help teams and venues transition from lockdown to welcoming spectators this summer.
Cricket, tennis, and horse racing will all benefit from the money as they plan to return to something that is close to normal life.
Boris Johnson has set June 21 as the date by which all major coronavirus restrictions should be lifted.
Mr Sunak said the money, a significant portion of which will go to English cricket, will help get fans back to the stadiums.
“As a huge cricket fan, I know that nothing says more about summer than watching your favorite team,” he said.
“I can’t wait for the sports fields to be filled with fans full of atmosphere again. This £ 300 million cash boost will help make this a reality.”
The latest funding follows the example of the £ 300 million Sports Winter Survival Package announced last November.
The government hopes a £ 300 million sports restoration package will help summer sports venues welcome crowds again later this year. The third closed-door test between England and Pakistan is pictured at the Ageas Bowl in Southampton last August
Einzelheiten darüber, wie das Geld verteilt wird, wie Organisationen es beantragen können und wann das Geld ausgegeben werden könnte, werden in den kommenden Wochen von den Ministern festgelegt.
Das Cricket Board von England und Wales begrüßte das zusätzliche Geld und sagte, es würde ein “finanzielles Sicherheitsnetz” bieten.
“Das Spielen hinter verschlossenen Türen während der gesamten letzten Saison hatte bereits schwerwiegende finanzielle Auswirkungen auf Cricket. Dies wird auch in diesem Jahr so lange fortgesetzt, bis die volle Menge zurückkehren kann, während das Freizeitspiel auch finanziell gelitten hat”, sagte ein Sprecher.
“Diese Unterstützung könnte eine Lebensader für Teile des Spiels sein, und wir freuen uns darauf, alle Einzelheiten darüber zu erfahren, wie diese Mittel verteilt werden und wie Organisationen sie anwenden können.”
Neues Geld, um Gemeindegruppen dabei zu helfen, kämpfende Pubs und Sportvereine zu retten
Community-Gruppen können bei der Regierung bis zu 250.000 GBP beantragen, um die Rettung von Pubs zu unterstützen, gab Rishi Sunak heute bekannt.
Die Kanzlerin hat einen Topf mit Bargeld im Wert von 150 Millionen Pfund beiseite gelegt, der Menschen zur Verfügung stehen wird, die das Vermögen der Gemeinschaft am Laufen halten wollen.
Der Community Ownership Fund kann auch dazu verwendet werden, Sportvereine, Theater und Musikveranstaltungsorte zu retten, die in Gefahr sind, geschlossen zu werden.
Der Fonds, der im Sommer eröffnet wird, bietet bis zu 250.000 GBP an Matched-Funding-Angeboten, um lokale Vermögenswerte zu kaufen und als Unternehmen in Gemeinschaftsbesitz zu führen.
Community-Gruppen können bis zu 250.000 GBP bieten, um die Zukunft eines örtlichen Pubs oder einer Sportstätte zu sichern
In Ausnahmefällen können Menschen möglicherweise bis zu 1 Million Pfund an passenden Finanzmitteln für die Gründung eines gemeindeeigenen Sportvereins oder Sportplatzes sichern.
Herr Sunak sagte: „Pubs und Sportvereine sind das Herz und die Seele unserer lokalen Städte und Dörfer – sie sind der Klebstoff, der uns zusammenhält.
“Dieser Fonds wird dazu beitragen, dass wichtige lokale Institutionen nicht an diejenigen verloren gehen, die sie am meisten schätzen.”
Regierung führt Hypothekengarantie für Erstkäufer ein, um ihnen zu helfen, auf die Wohnleiter zu gelangen
Der Bundeskanzler hat ein Hypothekengarantiesystem vorgestellt, das angehenden Hausbesitzern mit kleinen Einlagen auf der Immobilienleiter helfen soll.
Rishi Sunak möchte Kreditgeber dazu anregen, Erstkäufern und derzeitigen Hausbesitzern Hypotheken mit nur fünf Prozent Einlagen für den Kauf von Immobilien im Wert von bis zu 600.000 GBP zur Verfügung zu stellen.
Die Regierung wird den Kreditgebern die Garantie bieten, die sie für die Bereitstellung von Hypotheken für die verbleibenden 95 Prozent benötigen.
Das Finanzministerium sagte, Hypotheken mit niedrigen Einlagen seien aufgrund der wirtschaftlichen Auswirkungen der Coronavirus-Pandemie „praktisch verschwunden“.
Boris Johnson hat gesagt, dass das Programm dazu beitragen wird, dass “Generationenmiete” zu “Generationskauf” wird.
Die Minister führen ein Hypothekengarantiesystem ein, um Erstkäufern dabei zu helfen, 95 Prozent der Hypotheken von Kreditgebern zu erhalten
Das System, das den üblichen Erschwinglichkeitsprüfungen unterzogen wird, wird den Kreditgebern ab April zur Verfügung stehen.
Es basiert auf dem 2013 von David Cameron und George Osborne eingeführten Help to Buy-Hypothekengarantiesystem, das bis Juni 2017 lief.
Mit dem Ziel, den Markt nach der Finanzkrise von 2008 wiederzubeleben, soll dieses Programm – im Gegensatz zum Programm „Hilfe beim Kauf von Eigenkapitaldarlehen“ – mehr als 100.000 Haushalten geholfen haben, ein Haus in ganz Großbritannien zu kaufen.
Es gab aber auch Bedenken, dass dadurch die Preise und die Gewinne der Hausbauer künstlich erhöht würden.
Am stärksten betroffene Pubs, Restaurants und Geschäfte, die von einem Covid-Zuschussprogramm in Höhe von 5 Mrd. GBP profitieren
Pubs, Restaurants und Geschäfte, die am stärksten von der Coronavirus-Pandemie betroffen sind, werden durch ein Zuschussprogramm in Höhe von 5 Mrd. GBP unterstützt, das ihnen bei der Wiedereröffnung hilft, wenn die nationale Sperrung gelockert wird, bestätigte Rishi Sunak heute.
Die „Wiederanlaufzuschüsse“ haben einen Wert von bis zu 6.000 GBP pro Standort und sollen nicht wesentlichen Einzelhändlern helfen, wieder zu öffnen und sicher zu handeln.
Gastgewerbe, Hotels, Fitnessstudios sowie Unternehmen für Körperpflege und Freizeit können bis zu 18.000 GBP pro Gebäude erhalten, da sie später im Rahmen der Pläne zur Lockerung der Sperrung eröffnet werden sollen.
Das Finanzministerium schätzt, dass 230.000 Unternehmen für das höhere Band in Frage kommen, das auf der Grundlage ihres anteiligen Werts vergeben wird, und 450.000 Geschäfte können sich ebenfalls bewerben.
“Restart Grants” im Wert von bis zu £ 6.000 pro Geschäft stehen den Geschäften zur Verfügung und sollen nicht wesentlichen Einzelhändlern helfen, wieder zu öffnen und sicher zu handeln. Die Oxford Street ist im Januar abgebildet
The £5billion for restart grants is targeted at England, but the devolved nations in Scotland, Wales and Northern Ireland will receive an extra £794 million in funding through the Barnett formula.
Local authorities will be tasked with distributing the grants and will receive the funding in April.
The UKHospitality trade body welcomed the plan, saying many firms are ‘struggling to see how they could survive through’ Boris Johnson’s road map for reopening, with laws on social distancing set to continue until at least June 21 – the earliest date when nightclubs will be considered for reopening.
Vaccine rollout to receive £1.65billion boost to ensure every adult gets jab by end of July
Chancellor Rishi Sunak has pledged an additional £1.65billion to the UK’s vaccination drive to ensure the Government hits its target of a jab for every adult by the end of July.
The success of the vaccination programme is viewed as one of the main keys to whether the Government will be able to stick to the PM’s reopening dates contained in his roadmap.
Ministers are aiming to have given a first dose of the vaccine to all of the top nine priority groups by the middle of April.
They are then targeting a date of July 31 to have completed the rollout of first doses to all UK adults.
Mr Sunak is also diverting £22million to fund a ‘world first’ trial to test if different vaccines can be used together and to see if a third dose is effective.
Speaking ahead of the Budget, Mr Sunak had said it is ‘essential we maintain this momentum’ on the vaccination drive.
‘Protecting ourselves against the virus means we will be able to lift restrictions, reopen our economy and focus our attention on creating jobs and stimulating growth,’ he added.
He will also give £33 million to improve the ability to respond to new variants and improve vaccine testing, including £5 million to create a ‘library’ of Covid-19 jabs.
The Government is aiming to have offered a first dose of coronavirus vaccine to every UK adult by the end of July. Pictured is a vaccination centre located in Salisbury Cathedral, Salisbury, Wiltshire
Rishi Sunak announces new route to UK for high-skilled foreign workers
The UK’s immigration system will be changed in an attempt to make it easier to attract the ‘brightest global talent’.
Rishi Sunak has announced the creation of a new route for high-skilled workers to come to Britain.
The Chancellor has also promised to streamline the sponsorship process for firms in order to cut red tape and reduce the paperwork burden on businesses.
Mr Sunak is hoping the reforms will help to boost the number of researchers, engineers and scientists who come to work in the UK.
The changes will include a new ‘elite’ points-based route that will help start-ups and fast-growing firms like fintech companies recruit the talent they need to innovate and grow.
The Treasury said that under the new route ‘highly skilled migrants with a job offer from a recognised high-growth firm will qualify for a visa without the need for sponsorship or third-party endorsement’.
Mr Sunak said: ‘We’ve taken back control of our borders and are backing business with a skills-led approach to migration that works for the whole of the UK.
‘These reforms will ensure we maintain our global status as world-leader in science and innovation – welcoming those with unique expertise.’
UK to become first sovereign issuer of green savings bond
The UK is going to launch the world’s first sovereign green savings bond for retail investors, Rishi Sunak confirmed today.
Ministers hope the move will enable savers to help drive the country’s shift to net zero by 2050.
The green savings bond will be offered through NS&I, the Treasury-backed savings organisation which offers Premium Bonds and other savings products.
Mr Sunak said: ‘The UK is a global leader on tackling climate change, with a clear target to reach net zero by 2050 and a Ten Point Plan to create green jobs as we transition to a greener future.
‘In a world first, we’re launching a new green savings bond which will give people across the UK the opportunity to contribute to the collective effort to tackle climate change.’
The money raised through the sale of the bonds will be earmarked for renewable energy projects and clean transportation initiatives.