What the 2021 budget means for people in the West Country

  • Watch Kathy Wardle's report


There has been a mixed reaction from business owners and people in the West Country to yesterday's budget announcement.

Chancellor Rishi Sunak has said he is increasing business tax and freezing income tax thresholds in a bid to repair the UK's damaged economy.

He pledged additional £65 billion to support Britons through to the end of lockdown and beyond, but said he would also need to start clawing back some of the £407 billion that has been spent in total during the pandemic.

He also announced the extension of the furlough scheme, reduced 5% VAT and addition universal credit payments.

One business owner in the West Country says she welcomes the budget announcement.

Nikki Smith runs Pirates Quest attraction in Newquay which has been closed for a year and can't reopen until May.

She's welcomed the reduced 5% VAT rate for some businesses which is being extended until September.

She said: "The big benefit for us is holding on to that VAT cut, because we obviously didn't benefit from that last year by not being open.

"But only having to pay 5% on our ticket VAT is going to really help us and that will obviously hopefully keep our visitors happy as well because it means we can keep our ticket rates at a good level."

It's not all positive, Skinners Brewery in Truro which has lost 70% of its trade says it's disappointed the VAT cut hasn't been extended to alcohol businesses like theirs.

The brewery has set up a crowdfunding page to help it survive which has so far raised more than £80,000 in three days.

Like some of the region's business experts it had hoped for more from the budget.

Pubs, restaurants, shops and other businesses hit hardest by Covid in England will benefit from a £5 billion grant scheme to help them reopen as lockdown is eased.

Chancellor Rishi Sunak announced “restart grants” worth up to £6,000 per premises at his Budget on Wednesday.

Hotels, gyms and hairdressers, which will open later under the roadmap out of lockdown, will also be eligible for up to £18,000 per premises.

About 230,000 businesses will be eligible for the higher band, which will be awarded based on their rateable value, the Treasury estimates. 450,000 shops will also be able to apply.

Chancellor Rishi Sunak announced “restart grants” worth up to £6,000 per premises at his Budget on Wednesday. Credit: PA

In Camborne, one mum who is on universal credit says she is "relieved" that the extra £20 per month for claimants has been extended by six months.

Claire Houghton said: "I think it's really important because, I'm finding shopping that a lot of things are expensive.

"People want to put money back into the business so there might be that price increase a little bit.

"So, really for me, it's important to have it."

The key points from the chancellor's 2021 budget:


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