Boris Johnson has vowed ‘radical reforms’ to the country and has set aside £12bn – first announced in the budget – for funding for new homes.
This morning the prime minister vowed to get the country back on track with a new deal which will see a programme of building and investment.
Boris announced ‘the most radical reforms to our planning system since the Second World War’.
Alongside this programme, he has confirmed that the government will set aside £12 billion for the funding of new homes. This will support 180,000 new affordable homes for ownership and rent over the next eight years.
Included in that, is a new pilot of ‘First Homes’ that will provide a 30% discount to first time buyers.
The properties will be the exact same as others, but just sold to local first-time buyers who have been struggling to buy a home in the current market for 30% less.
The discount is said to be passed on to future buyers when First Homes are resold, to give more people the opportunity to get on the property ladder.
The final design of the First Homes scheme is yet to be confirmed.
The PM said today: “We will build fantastic new homes on brownfields sites and other areas, with better transport and other infrastructure, that could be suitable and right for development.
“We will address that intergenerational injustice and help young people get people the housing ladder the way their parents and grandparents could.
“We will build better, we will build greener, and faster.”
In revealing the plan to help Britain ‘get back on its feet’, he said: “It is time not just for a new deal, but a fair deal for the British people.
“This government is determined to use this crisis finally to tackle this country’s unresolved challenges of the last three decades.
“We will build the homes, fix the NHS, solve social care, to tackle the skills crisis, to mend the indefensible gap in opportunity, productivity and connectivity between the regions of the UK. To unite, and level up.
“To that end, we will build, build, build. Build back better, build back greener, build back faster.”
He added: “This is a programme for jobs, jobs, jobs – because it’s by building, building, building… that we will get the jobs this nation needs.”
Boris Johnson has vowed to not return to the years of ‘what people call austerity’. He says: “the world has moved on since 2008”.
“We are preparing now – slowly, cautiously – to come out of hibernation. We cannot continue simply to be prisoners of this crisis”, he said.
The prime minister has warned of the rocky economic time ahead that will see job losses.
Currently, 2.8 million people are unemployed in the UK and it’s predicted this number could rise by a further one million during the impending economic downturn.
“We know in our hearts that the furloughing cannot go on forever,” he said.
“We also know that jobs people had in January are not coming back, at least not in that form,” the prime minister said. However, he refused to address how many jobs might be lost overall.
“I remain absolutely certain we need to make sure we keep the tax burden in so far as we possibly can is reasonable and we continue to be a competitive market economy,” he said.
“You know where my instincts are and what I would like to do, they are of course to cut taxes where ever you possibly can.
“The difficulty is we have a generational challenge now. We have to take our country forward.”
He also stressed that Britain needs to remain competitive as it leaves the EU stating: “You need to make sure as we leave the EU, the fiscal environment has to be as competitive as it possibly can be.
“I want brilliant British ideas being translated into brilliant British companies.”
Fred Perry is opening a huge new flagship store in Afflecks
Who’s excited for this?
In some good news for our city centre, Fred Perry has announced that it will be opening a huge new store in the Northern Quarter.
The new flagship store will be located at the bottom of the Afflecks building, and is welcome news following the recent closure of high street stalwarts like Debenhams and Topshop.
Fred Perry will be moving from its current location on Police Street to open the new, bigger flagship store on the corner of Oldham Street and Church Street.
The site will see the iconic British brand move into the 2,820 sq ft unit this summer, joining Manchester’s legendary Afflecks which is owned by Bruntwood Works.
Fred Perry was co-founded by the Stockport-born tennis champion of the same name back in the late 1940s, and has gained worldwide fame for its laurel wreath logo and polo shirts.
Richard Gilmore, managing director at Fred Perry, said: “We’re delighted to be moving to the Northern Quarter. The area has no shortage of strong associations to ground-breaking music and subcultural style – something we continue to champion.
“Our retail spaces aren’t just shops, and we’re looking forward to sharing what we do with the Manchester community as part of an exciting continuation of Fred Perry and Afflecks’ mutual commitment to heritage and innovation.
“We now have a space we can be truly proud of in Manchester.”
Chris Middleton, senior retail manager at Bruntwood Works, added: “Fred Perry is a true icon, and we’re delighted to be welcoming them to the ground floor of our famous Afflecks building.
“The addition of this much-loved brand will bolster the retail community in the Northern Quarter neighbourhood, building on Oldham Street’s offering as a lifestyle-led shopping destination.
“It feels particularly exciting to be announcing the news after what has been a challenging twelve months for retail, as we look forward to a bright future for Manchester city centre.”
The new Fred Perry store will open this summer, although an exact date has yet to be released.
People on working tax credits will get a £500 one-off payment, Rishi Sunak confirms
Make sure you know about this
Brits on tax credits get a one-off benefits payment of £500, Rishi Sunak reveals in budget.
Outlined in the budget, Sunak explained that a £20 weekly increase in universal credit will extend for a further six months.
The chancellor explains that by the way Working Tax Credits system works people will not be able to receive the extra £20 weekly.
Instead, people will benefit from a £500 one-off payment.
Mr Sunak said: “To support low-income households, the Universal Credit uplift of £20 a week will continue for a further six months, well beyond the end of this national lockdown
“We’ll provide Working Tax Credit claimants with equivalent support for the next six months.
“Because of the way that system works operationally, we’ll need to do so with a one-off payment of £500.”
The £500 tax credit boost will run in the same way that the Universal Credit is paid – automatically.
Lots of people have switched from the old ‘Tax Credit’ to the new ‘Universal Credit’ system. Anyone who hasn’t yet been transferred across will now be eligible for this new one-off payment.
The number of people claiming universal credit in the UK has doubled since the start of the pandemic, reaching 6 million people at the start of this year.
The extra benefit support is welcomed but many are raising concerns that six months is not long enough.
Sunak also revealed in today’s budget that furlough will be extended until September but employers will have to pay 10% of the employee’s wages in July and 20% in August and September.
You can see a round-up of all the key points from the budget here.
What Rishi Sunak’s new budget means for people in Greater Manchester
Everything you need to know
Rishi Sunak has said he wants to be honest about the government’s plans for fixing the public finances.
The chancellor says there has been ‘acute damage’ to the economy, with more than 700,000 people losing jobs and the economy shrinking by 10% – the largest fall in 300 years.
Borrowing has also been as high as during wartime.
He said: “It’s going to take this country, and the whole world, a long time to recover from this extraordinary situation.”
Here are the key points from his 2021 budget announcement….
- Sunak explains that 1.8 million fewer people are expected to be out of work than previously thought, with the peak at 6.5% down from the forecasted peak of 11.9%.
- Furlough is set to be extended until the end of September this year, however, firms will be asked to contribute 10% of employee’s wages in July and 20% in August and September as the scheme is gradually phased out.
- A fourth grant worth 80% of average trading profits up to £7,500 covering February to April that will help self-employed people.
- The £20 increase in universal credit will extend for six months
- Total cash support to businesses has reached £25bn. A further £5bn restart grant has now been confirmed to help companies get going after lockdown.
- Hospitality and leisure businesses will pay no business rates for three months, then discounted for the remaining nine months of the year by two-thirds.
- The 5% VAT cut will be extended to the end of September and gradually increased at 12.5% for six months before returning to the normal rate in April 2022.
- The stamp duty holiday will be extended on properties up to £500,000 to the end of June. It will return to normal levels from October 1st.
- Mortgage guarantees were also confirmed to help first-time buyers access 95% mortgages, with just 5% deposits.
- The government will take a ‘fair’ approach to ‘fixing the public finances’ the chancellor confirms.
- There will be no increase in national insurance, income tax or VAT.
- The personal allowance will remain at £12,750 until 2026 and the higher rate will increase to £50,270 next year.
- Inheritance tax threshold, pensions lifetime allowance, annual exempt allowance from capital gains tax and VAT exemption thresholds will all be frozen.
- New minimum wage rates come into force in England on April 1st. Basic rate workers will see a 2.2% increase, with the National Living Wage rising to £8.91 an hour.
- The budget deficit will reach £355billion this year (17% of GDP) – the highest level in peacetime.
- Sunak said: “It’s going to be the work of many governments over many decades to pay it back, just as it would be irresponsible to withdraw support too soon, it would also be irresponsible to allow our future borrowing and debt to rise unchecked.”
- The chancellor explains that the economy will recover more quickly than previously thought.
- GDP will grow by 4% this year and 7.3% next year according to official forecasts.