Major Good News for Immigration! UK Announces 2021 Budget

UK media have described this as the most significant budget since Brexit, serving as a vital economic policy report that outlines the future trajectory of the UK economy and acts as a key driver for accelerating economic rebound in the post-pandemic era. UK Chancellor Rishi Sunak noted that the UK economy is poised to take off, aiming for the fastest growth in nearly half a century! The Office for Budget Responsibility (OBR) forecasts UK GDP growth to be 4% in 2021, 7.3% in 2022, followed by 1.7%, 1.6%, and 1.7% in subsequent years.

It is worth noting that on the day this detailed budget report was announced, the UK market reacted fiercely with positive sentiment, driving indices to surge. So, exactly what policies did Chancellor Rishi Sunak announce in the budget? Let's take a look with WorldWay!

Key points of the 2021 UK Budget:

1

UK Vaccine Rollout

• An additional £65 billion will be invested to combat COVID-19, bringing total fiscal support to £407 billion;

• The government will invest £1.65 billion to support the UK's vaccination efforts, including the rollout program;

• £50 million will be invested to enhance the UK's vaccine testing capacity.

2

Extension of Pandemic Support

• The government-subsidized furlough scheme for employees hit by the pandemic is extended until the end of September;

• The government will continue to pay 80% of wages for employees who cannot work;

• Employers are required to contribute 10% toward the salaries of furloughed staff in July, and 20% in August and September;

• Support for the self-employed will also be extended until September;

• With an increase in the number of eligible beneficiaries, 600,000 more self-employed individuals will qualify for support, up to a total of £7,500 each;

• The £20-per-week increase in Universal Credit (amounting to £1,000 per year) will be extended for another 6 months;

• Working Tax Credit applicants will receive a one-off payment of £500;

• From April, the national minimum wage will increase to £8.91 per hour.

3

Tax Policies

• From April 2021 to April 2026, the personal income tax allowance will be frozen at £12,570, and the higher-rate income tax threshold will be frozen at £50,270;

• The inheritance tax threshold, the pension lifetime allowance, and the annual capital gains tax-exempt amount will remain unchanged from 2020-2021 until 2025-26.

4

Corporate & Business Support

• The UK business rates holiday will continue until June, with a subsequent 75% discount period;

• £5 billion in 'restart grants' will be provided to shops and other businesses in the UK;

• Businesses can benefit from tax incentives to 'unlock' £20 billion in business investment;

• Businesses will be able to 'deduct' investment costs from tax bills, reducing taxable profits by 130%;

• Businesses in non-essential retail reopening this April will receive £6,000 per store, while gyms, personal care providers, and other hospitality and leisure firms will receive up to £18,000.

5

Talent Attraction and Technological Innovation

• Implement visa reforms to help start-ups and fast-growing tech companies attract high-tech talent from overseas;

• The new UK Infrastructure Bank will be established in Leeds with £12 billion in initial capital to fund 'green industrial revolution' projects in both the public and private sectors.

Overall, this report is wide-reaching and outlines the future of the UK economy. Through creating the most relaxed environment and providing maximum protection for individuals and small businesses, it has filled global investors with confidence in the UK! While announcing this report, the UK Chancellor stated that the economy is expected to rebound faster than anticipated, likely returning to pre-COVID levels by the middle of next year—six months earlier than previously expected. Coupled with the constant stream of positive news from the UK in 2021, such as the GBP exchange rate climbing to a high of 9.14 at the end of February, we believe that with the host of major benefits introduced in the 2021 UK Budget, UK immigration will see explosive growth in the future!

Opportunity always favors those who are prepared! Whether you are interested in investing in the UK or immigrating for the sake of your children’s education, plan ahead to secure UK status: early planning means an early application and early benefits! Currently, the UK Representative of an Overseas Business visa, which offers low investment costs and fast approval times of as little as 5 working days, is a high-quality, low-threshold path to quick immigration to the UK in the current market! With no specific investment amount requirement, a single application can cover the whole family’s immigration, making it highly favored by investors!