Budget 2020 summary – key announcements at a glance as £12bn goes on coronavirus

Chancellor Rishu Sunak driven a coach and horses through 10 years of Tory austerity – going on a borrowing splurge as he pours £12billion into tackling the coronavirus outrbreak.

Today's Budget – the first in 17 months – announced a shake-up in benefits and sick pay rules and a stimulus for businesses like pubs and music venues to deal with a slowdown from COVID-19.

Fuel duty was frozen for the 10th year in a row with no rises to taxes on beer, wine, spirits or cider.

And National Insurance contributions will be cut, saving middle and higher earners £85 a year.

The Chancellor said £12bn would go on measures to tackle Coronavirus, plus another £18bn of "fiscal loosening" to help the economy more generally – a £30bn total.

There was also money for the environment, including a new plastics tax.  He promised extra funds for broadband, road building and further education.

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But in return borrowing per year will almost DOUBLE per year by 2024 – driving a coach and horses through a decade of failed Tory pledges to rebalance the economy after the Labour years.

And a sting in the tail includes a tax on gas suppliers that could see household bills rise by £5 a year. Meanwhile there was nothing for social care, no action on child benefit and no help for cash-strapped councils.

Meanwhile shake-ups to red diesel and entrepreneurs' relief could prove controversial down the line.

And with GDP growth down to just 1.1%, Jeremy Corbyn warned the UK enters the COVID-19 crisis with its public services "on their knees" and with a "fundamentally weak" economy.

Here are all the key announcements from the Budget at a glance.


  • £30bn in total (including lending) – split into £12bn of specific coronavirus measures and £18bn of other collected 'fiscal loosening' elsewhere in the Budget
  • Statutory sick pay available from day one, not the fourth day of illness
  • It will be available to all those who self-isolate, not just those actually ill
  • Government will refund sick pay costs incurred by small firms with fewer than 250 workers
  • But still not available to self-employed or workers on under £118 a week
  • For those workers, ESA sick benefit will be available from Day 1 not Day 8
  • Minimum Income Floor in Universal Credit for self-employed to be temporarily axed
  • People won't have to physically visit a Jobcentre to get benefits
  • Businesses get up to £1.2bn in Coronavirus Business Loan Interruption Scheme
  • £2.2bn grant scheme for small firms and dedicated helpline to defer tax payments
  • £5bn COVID-19 "response fund" to support NHS and other public services


  • Corporation Tax cut will be cancelled, keeping rate at 19% and netting Treasury up to £7.5bn a year

  • Inheritance tax threshold from April 2020 is due to hit £500,000 including property, making the tax-free sum for married couples a cool £1million

  • No national insurance contributions on the first £9,500 of your earnings – up from £8,632 at the moment – working out as a saving of around £85 a year

  • Tampon tax abolished (the 5% VAT charged on women's sanitary products) from January 2021

Wages and pensions

  • Minimum wage for over-25s will rise by 51p to £8.72 an hour from April. It will also rise to £8.20 (age 21 to 24), £6.45 (18 to 20), £4.55 (under 18) and £4.15 (apprentice)

  • National Living Wage will reach two-thirds of median earnings by 2024 – forecasting a wage for over-25s of £10.50 an hour

  • Victory for doctors and nurses as pension tax rules changes – those with income under £200,000 can now work overtime without affecting their pension in a 'cliff-edge' situation

  • But no help for WASPI women who had to wait far longer for their pension

Hand rolling tobacco duty to rise at RPI + 6% at 6pm on Budget Day

Vehicles and petrol

  • Fuel duty frozen for the 10th year in a row
  • Massive £1.6bn-a-year cut to polluting red diesel tax relief – with only a few industries like agriculture and fishing exempted

Growth figures and Treasury rules

  • Massive increase in borrowing per year – up from a projected £33.3bn in 2023/24 to £60.2bn
  • Treasury's 'fiscal rules' limiting borrowing could be ripped up, with review until July
  • GDP growth sinks to just 1.1% this year, down from predicted 1.4% – and that's BEFORE coronavirus
  • Debt to stay high at 75.2% of GDP in 2024/25 – BEFORE coronavirus is factored in

NHS and social care

  • £6bn of 'new' NHS funding announced in Budget
  • Including £100m in 2020/21 to make progress on Boris Johnson's 40 'new' hospitals
  • Health Department capital budget to rise by £683m in 2020/21
  • But there is NO new funding for social care in the Budget (apart from as part of the coronavirus support fund) despite a cash crisis
  • Immigration Health Surcharge soars to £624 a year for non-UK nationals to use the NHS


  • New £1bn fund to remove unsafe cladding after Grenfell
  • £643m for accommodation and support services for rough sleepers – creating up to 6,000 places to live, funded by…
  • Non-UK residents hit with 2% Stamp Duty surcharge from April 2021
  • £12.2bn in total 2020/21 grant funding for affordable homes programme, some of which was already announced


  • £1.4bn will be invested in the science institute at Weybridge, where scientists are working to analyse coronavirus samples “as we speak”
  • At least £800m will be invested in a new “blue skies” funding for science here in the UK

  • £400m of new funding will be invested into “high quality” research including around the country, not just in London and the south east.

Armed Forces, police and justice

  • Special domestic abuse courts where criminal offences are heard alongside family law cases will be set up under a £5million trial


  • Treasury offices will be beefed up in the nations of the UK

  • Economic campus in the north with 750 staff from the Treasury and Business, Local Governent and Trade departments

  • In the long term, ambition to move 22,000 civil servants outside central London

  • £242m of funding for new city and growth deals, taking investment in them in total to £2.7bn


  • Air Passenger Duty frozen on short-haul flights at £13
  • But APD rises at £2 for long-haul economy, £4 for long-haul premium classes, and £13 for long haul private jets
  • A £2.5billion drive to repair 50 million potholes  over the next five years
  • £27bn investment in English roads between 2020 and 2025 in total
  • Stonehenge tunnel two miles long to be built on the A303
  • £500 million over the next five years for fast-charging network for electric vehicles
  • A66 Trans-Pennine route dualled
  • M60 Simister Island in Manchester to be improved
  • Build the Lower Thames Crossing east of London
  • £20m to develop the Midlands Rail Hub
  • Confirm £1bn of allocations for transport from the Transforming Cities Fund
  • 15 local road upgrades across the country


  • £3bn Entrepreneurs Relief cut by up to £1.8bn a year by reducing the 'lifetime limit' on the benefit for small firms from £10m to £1m . Chancellor claims 80% of firms unaffected, but it's a huge cut.
  • Business rates retail discount rises from 50% to 100% in 2020/21 for small firms (properties with a rateable value under £51,000)
  • Pubs' business rates discount rises from £1k to £5k for those with rateable value under £100k
  • A £5billion by 2025 programme of super-fast broadband
  • Consultation into the long-term future of business rates
  • Treasury is expected to start talks with the industry on protecting cash machines for the poorest


  • Funding for flood defences is expected to be doubled to £5.2 billion over the next six years
  • A new Green Gas Levy that could reportedly add £5 a year to energy bills

    £120m will be available immediately to repair all flood defences damaged this winter

  • Another £200m will be provided directly to local communities to build their local resilience.

  • Manufacturers will be charged £200 a tonne on non recycled plastic from April 2022

  • Freeze the levy on electricity from April 2022 but raise the levy on gas to help tackle the climate crisis

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