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Budget 2021: Personal care sector denied VAT cut to 5%

Gaelle Walker
03 March 2021

The UK’s personal care industry appears to have been denied it’s much-campaigned for cut in VAT to 5%.

However, revealing the UK’s Budget for 2021, Chancellor Rishi Sunak said he would introduce a new “re-start grant” of up to £18,000 per personal care business, to support the sector’s re-opening.

“Non-essential retail will open first so they will get grants of up to £6,000 per premises,” Sunak said.

Hospitality and leisure, including personal care and gyms will open later, or be more impacted by restrictions when they do.

“So we will give them grants of up to £18,000 – that’s £5bn of new grants, taking our direct total cash support to business to £25bn,” Sunak added.

The Chancellor also announced that the UK’s furlough scheme would be extended until the end of September and a doubling of the incentive payments for apprentice hires to £3,000.

The current business rates holiday will also continue until the end of June, after which rates will be discounted by two thirds for the remainder of the year.

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