Budget Report: Furlough scheme extended and corporation tax will increase to 25% from 2023

The Budget Report with Katie Pilbeam. 

Rishi Sunak has revealed the details of his budget with the UK to borrow a peacetime record of £355bn this year. The Chancellor is expecting unemployment to peak at 6.5% in 2022, lower than the 11.9% predicted. 

The furlough scheme is to be extended to the end of September and employers will be asked contribute 10% in July and 20% in August and September. And a further 600,000 self-employed people will be eligible for a grant. 

Corporation tax will increase to 25% from 2023 but income tax thresholds will freeze. The 5% reduced rate of VAT for tourism and hospitality will be extended for six months to the end of September. 

And the stamp duty cut will continue until the end of June, no stamp duty will be charged on a residential property bought for up to £500,000. Until September, no stamp duty will be charged on a residential property bought for up to £250,000.

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