These are the main implications from an employment perspective. 

Extension of the Coronavirus Job Retention Scheme

The furlough scheme will be extended until the end of September 2021.

It will continue in its current form until 30 June. After that, employers will be expected to pay 10% towards the hours their staff do not work in July, increasing to 20% in August and September.

Widening Access to Grants for the Self-Employed

Government support for the self-employed has also been extended until September 2021.

People who have filed their tax returns for 2019/20 are now eligible to claim support for the first time.

The support will cover 80% of three months' trading profits up to £7,500 from February to April. From May until September, people whose turnover has fallen by more than 30% will get the 80% grant but self-employed people whose turnover has fallen by less than 30% will get a 30% grant capped at £2,850.

Statutory Sick Pay

Employers with fewer than 250 employees will continue to be able to claim for re-imbursement of Statutory Sick Pay costs for the first 14 days of their employees' absence where the absence is caused by coronavirus. The Government has indicated this scheme will remain in place whilst sickness absence levels remain high but has not yet indicated when it will end. 

National Living Wage

The National Living Wage ("NLW") will be increased to £8.91 an hour with effect from 1 April and for the first time this rate will be extended to apply also to those aged 23 and 24.

Anything else?

The UK Government confirmed its plan to increase corporation tax to 25% for companies with profits of over £250,000 in 2023. Businesses with profits of £50,000 or less will be unaffected remaining at the 19% rate and those with profits in between £50,000 and £250,000 will see a tapered increase.

The 5% reduced rate of VAT will continue to apply to the tourism and hospitality sector until 30 September. A 12.5% rate will then apply until 31 March 2022.