Read: How the Budget aligns with the levelling up agenda
The Chancellor Rishi Sunak recently set out his plan to support people through the coming months and hopefully, out of lockdown. Headlines included the extension of the furlough scheme until the end of September, the great town of Darlington being named as the location for the Government’s new Treasury North and the extension of the business rates holiday and VAT cuts.
Here we take a deeper dive into how the Budget aligns with the ‘Levelling up Goals’.
Strong Foundations in Early Years
What policies in the Budget help to close the early years development gap by delivering the best possible start for every child?
Government making available £700 million of further funding to help young people in England catch up on lost learning as a result of COVID. New package includes a one-off £300 million Recovery Premium for state primary + secondary schools, £200 million to expand tutoring programmes + deliver early language support, £200 million for secondary schools to deliver summer schools. [Budget 2021 p47]
2. Successful School Years
What policies in the Budget help to allow every child to successfully achieve their potential in attainment and development?
Government making available £700 million of further funding to help young people in England catch up on lost learning as a result of COVID. New package includes a one-off £300 million Recovery Premium for state primary + secondary schools, £200 million to expand tutoring programmes + deliver early language support, £200 million for secondary schools to deliver summer schools. [RB p47]
3. Positive Destination Post 16+
What policies in the Budget help support young people and adults to have the choice of a high-quality route in education, employment, or training?
Government will provide an additional £126 million in England for high quality work placements and training for 16-24 year olds in the 21/22 academic year. Employers who provide trainees with work experience will continue to be funded £1000 per trainee. [RB p47]
Government will extend + increase payments made to employers in England who hire new apprentices. Employers will receive £3000 per new hire compared with £1500 under previous scheme [RB p47]
Government will introduce a £7 million fund to help employers in England set up and expand portable apprenticeships. Will enable people who need to work across multiple projects with different employers to benefit from the high quality long-term training an apprenticeship provides. [RB p47]
4. Right Advice and Experiences
What policies in the Budget provide for access to the right advice and experiences at the right time to unlock opportunity through a person’s life?
Government will invest £1.3 million to pilot use of new technologies to support in or out-of-work people to find new job opportunities suited to their skills + experience. [RB p47]
Help to Grow: Management - the government will offer a new UK-wide management programme to upskill 30,000 SMEs in the UK over three years. Working in partnership with industry, the programme will combine a national curriculum delivered through business schools with practical case studies and mentoring from experienced business professionals. Over 12 weeks, and 90% subsidised by government, this programme will equip SMEs with the tools to grow their businesses and thrive [RB p62]
5. Open Recruitment
What policies in the Budget ensure careers and professions are open to people of all backgrounds through transparent, accessible, and open recruitment practices?
There are no policies that specifically relate to Open Recruitment.
6. Fair Career Progression
What policies in the Budget offer opportunities for career advancement for all based on ability and potential, not connections?
The government will allocate almost half the £400m New Deal for Northern Ireland to four areas subject to business cases: new systems for supermarkets and small traders to manage new trading arrangements; building greater resilience in medicine supply chains; promoting Northern Ireland’s good and services overseas; and supporting skills development [RB p60]
7. Widening Access to Savings and Credit
What policies in the Budget help widen access to responsible credit and close the savings gap?
The government is making a one-off payment of £500 to eligible Working Tax Credit claimants across the UK, to provide continued extra support over the next six months. [RB p45]
Government will provide up to £3.8 million of funding to deliver a pilot no-interest loans scheme which will help vulnerable consumers who would benefit from affordable short-term credit to meet unexpected costs as an alternative to high-cost credit. [RB p48]
Band of savings income subject to the 0% starting tax rate will remains at its current level of £5,000 for 2021-22.[RB p52]
Individuals in all parts of the UK will benefit from the government’s new mortgage guarantee scheme, allowing first-time buyers and existing homeowners the chance to secure a mortgage on homes up £600k with just a 5% deposit [RB p67, also in Goal 12]
8. Good Health and Well-Being
What policies in the Budget help to improve mental and physical health at all ages to boost overall well-being to allow people to fulfil their potential?
The government allocating £1.65 billion for 21-22 to continue the vaccine deployment programme in England, and devolved administrations receiving additional funding through the Barnett formula. [RB p47]
The government will provide an additional £10 million in 21-22 to Armed Forces Covenant Trust, to deliver charitable projects/initiatives that support veterans with mental health needs. [RB p48]
The government is investing £28m to increase the UK’s capacity for vaccine testing and support for clinical trials [RB p59]
The government is providing a further £5m upfrontment investment in clinical-scale mRNA vaccine manufacturing to the Centre for Process Innovation in Darlington [RB p59]
The government is committing £22m to fund the expansion of the world’s first trial of combining different vaccines as part of a two-dose regime [RB p59]
The government will allocate almost half the £400m New Deal for Northern Ireland to four areas subject to business cases: new systems for supermarkets and small traders to manage new trading arrangements; building greater resilience in medicine supply chains; promoting Northern Ireland’s good and services overseas; and supporting skills development [RB p60]
The government is investing in UK life sciences to enhance our ability to respond to new variants of COVID-19 and future pandemic threats.
Budget makes a lifetime commitment to continue the Thalidomide Health Grant in England when existing funding runs out, so no one has to worry about the future costs of their care. Commitment includes initial down payment of around £39 million for first 4 years after current grants runs out. [RB p48]
9. Extending Enterprise
What policies in the Budget extend private enterprise and entrepreneurship to all people and communities?
Chancellor Rishi Sunak
The government will provide ‘Restart Grants’ in England of up to £6,000 per premises for non-essential retail businesses and up to £18,000 for hospitality, accommodation, leisure, personal care and gyms, giving them the cash they need to plan ahead and safely relaunch trading.. [RB p48]
Statutory Sick Pay (SSP) Rebate Scheme will enable small + medium employers across UK to reclaim up to 2 weeks of eligible SSP costs per employee, intended to support employers while levels of sickness absence are high.[RB p49]
VAT Deferral New Payment Scheme - Any business that took advantage of the original VAT deferral in 2020 can now use the new scheme to pay that deferred VAT in up to 11 payments.[RB p49]
The government will extend the temporary reduced rate of 5% VAT for goods and services in tourism + hospitality sectors until the end of September ‘21. Then 12.5% until end of March ‘22.[RB p49]
The government will continue to provide eligible retail, hospitality, leisure properties in England with 100% business rates relief. Followed by 66% business rates relief, capped at £2 million per business forced to close on 5 January ‘21 or £105,00 per business for other eligible properties.[RB p49]
Trading loss carry-back rule will be temporarily extended from the existing 1 year to 3 years to help businesses pushed into a loss-making position. Available for both incorporated and unincorporated businesses. [RB p49]
To support UK consumers + businesses, the government has approved an increase to the legal contactless payment limits up to £100 for single payments and cumulative payments up to £300. [RB p50]
The government will extend the £500 million Film and TV Production Restart Scheme for 6 months.[RB p50]
The government will provide a £300 million Sport Recovery Package for continued support to major spectator sports in England, supporting clubs and governing bodies.[RB p50]
Freeports in England (East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth and South Devon, Solent, Teesside, Thames) will benefit from a number of tax reliefs such as an enhanced 10% rate of Structures and Buildings Allowance, an enhanced capital allowance of 100% for companies investing in plant and machinery for use in Freeport tax sites, full relief from Stamp Duty Land Tax on the purchase of land or property within Freeport tax sites, full business rates relief in Freeport tax sites; and potentially Employer National Insurance contributions relief for eligible employers in Freeport tax sites, subject to Parliamentary process and approval [RB p57/58]
The government is confirming over £1bn for the Towns Fund for a further 45 Town Deals across England, which will help level up regional towns, giving them the tools to design and implement a growth strategy for their area and aiding local recovery from the impacts of COVID-19 [RB p60]
The government is launching the prospectus for the £220m UK Community Renewal Fund alongside the Budget. This will support communities across the UK in 2021-22 to pilot programmes and new approaches as the government moves away from the EU Structural Funds model and towards the UK Shared Prosperity Fund. To ensure that funding reaches the places most in need, the government has identities 100 priority places based on an index of economic resilience to receive capacity funding to help them coordinate their applications [RB p60]
The Super Deduction: companies investing in qualifying new plant and machinery assets will benefit from a 130% first-year capital allowance. Investing companies will also benefit from a 50% first-year allowance for qualifying special rate assets [RB p57]
The government is accelerating investment in three City and Growth Deals in Scotland (Ayshire, Argyll and Bute, and Falkirk) and three City and Growth Deals in Wales (Swansea Bay, North-Wales, and Mid-Wales). Over the next five years, £84.5m in funding will be brought forward to speed up investment in local economies priorities. [RB p59]
The government will allocate almost half the £400m New Deal for Northern Ireland to four areas subject to business cases: new systems for supermarkets and small traders to manage new trading arrangements; building greater resilience in medicine supply chains; promoting Northern Ireland’s good and services overseas; and supporting skills development [RB p60]
10. Closing the Digital Divide
What policies in the Budget help to close the digital divide in technology access, skills, opportunities, and infrastructure?
The Government will provide up to £475,000 to Armed Forces charities to support development of a digital and data strategy for the sector, improving the ability of charities to work together and with the government. Help ensure members of the Armed Forces community can access the support they need. [RB p48]
Help to Grow: Digital - the government will launch a new UK-wide scheme in the autumn to help 100k SMEs save time and money by adopting productivity-enhancing software, transforming the way they do business. This will combine a voucher covering up to half the costs of approved software and free impartial advice [RB p62]
11. Infrastructure for Opportunity
What policies in the Budget help to develop the physical infrastructure that connects people and places to opportunity?
Greater Manchester Combined Authority will receive £8.6m in capacity funding to support preparations for intra-city transport settlements; Liverpool City Region will receive £5.6m [RB p56]
5 new rail stations will approved access to jobs and opportunities in Birmingham, Wolverhampton, and Walsall [RB p56]
The government will match fund £30m towards the construction of the Global Centre of Rail Excellence, a train testing facility [RB p61]
The new UK Infrastructure bank, headquartered in Leeds, will provide financing support to private sector and local authority infrastructure projects across the UK, to help meet government objectives on climate change and regional economic growth [RB p57]
The £4.8bn Levelling Up Fund will invest in infrastructure that improves every day life across the UK, including town centre and high street regeneration, local transport projects, and culture and heritage assets [RB p68].
The government will commission a new NIC study on on towns and regeneration, which will consider how to maximise the benefits of infrastructure policy and investment for towns in England [RB p 61]
The government will provide £135m to accelerate the start of construction on the A66 Trans-Pennine upgrade to 2024 [RB p61]
The government will provide £50m to develop proposals for transport improvements around the High Speed 2 Birmingham Interchange Station which will help support regeneration at Arden Cross in Solihull [RB p61]
The government will invest £59m towards the construction of five new stations in the West Midlands. The Budget will also unlock more than £40m of funding to reinstate passenger services on the Okehampton-Exeter line, subject to final approval of costs and contracts [RB p61]
12. Building Homes & Sustainable Communities
What policies in the Budget help to create affordable quality homes so people can live in safe and sustainable communities?
Government will introduce a new mortgage guarantee scheme, will provide a guarantee to lenders across the UK who offer mortgages to people with a deposit of just 5% on homes with a value up to £600,000. Will increase availability of mortgages on new or existing properties. [RB p46]
Temporary Stamp Duty Land Tax (SDLT) cut - Government will extend the temporary increase in the residential SDLT Nil Rate Band to £500,000 until June 2021. From 1 July, the Nil Rate band will reduce to £250,000 until September 21 before returning to £125,000.[RB p46]
Government will help Support for Mortgage Interest claimants in Great Britain to move home by allowing them to add legal costs associated with transferring their claim to a new property to the value of their loan.[RB p46]
Care leavers up to 25 and those under 25 who’ve spent at least 3 months in a homeless hostel will be exempt from the Shared Accommodation Rate in Universal Credit and Housing Benefit, helping more vulnerable people access suitable housing. [RB p46]
The government will provide an additional £19 million towards tackling domestic abuse, including increased funding for perpetrator programmes that work with offenders to reduce risk of continued abuse and £4 million to trial a network of ‘Respite Rooms’ across England to provide specialist support for homeless women.[RB p48]
Culture Recovery Fund will be provided £300 million to continue to support key national and local cultural organisations in England.[RB p50]
The government will provide £90 million for continued support for government-sponsored National Museums + cultural bodies in England.[RB p50]
The government will create a new £150m Community Ownership Fund to help ensure that communities across the UK can continue to benefit from the local facilities and amenities that are most important to them. Community groups will be able to bid for up £250k matched funding to help them buy local assets to run as community-owned businesses. In exceptional cases, up to £1m of matched funding will be available to help establish a community-owned sports club or buy a sports ground at risk of loss from the community. [RB p60]
MHCLG will establish a Modern Methods of Construction Task Force, backed by £10m of seed funding, to accelerate the delivery of MMC homes in the UK. The taskforce will be headquartered in MHCLG’s new office in Wolverhampton. [RB p60/61]
The government will invest £18.8m in local cultural infrastructure projects in Carlisle, Hartlepool, Wakefield, and Yeovil to boost the vibrant cultural life of these towns and cities [RB p61]
Individuals in all parts of the UK will benefit from the government’s new mortgage guarantee scheme, allowing first-time buyers and existing homeowners the chance to secure a mortgage on homes up £600k with just a 5% deposit [RB p67, also in Goal 7]
13. Harness the Energy Transition
What policies in the Budget ensure that the energy transition is fair and creates opportunities across the UK?
The government will maintain the freeze on Carbon Price Support rates at £18 per tonne of carbon dioxide in ‘22-23. Committed to carbon pricing to drive decarbonisation. [RB p53]
£4.8m for a hydrogen hub in Holyhead to pilot the creation of a hydrogen using renewable energy and its use as a zero emission fuel for Heavy Goods Vehicles [RB p62]
Dame Clara Furse will establish a new group with the aim of positioning the UK and the City of London as the leader of the global voluntary carbon markets for high-quality offsets [RB p64]
£27m for the Aberdeen Energy Transition Zone will help support North East Scotland to play a leading role in meeting our net zero ambitions [RB p62]
The government will make an offer of support, in principle, to the Able Marine Energy Park on Humberside following the conclusion of the competition to upgrade ports infrastructure for the next generation of offshore wind. The government will also sign a memorandum of understanding with Teesworks Offshore Manufacturing Centre on Teesside to support the development of another offshore wind port hub [RB p62]
The government will issue its first sovereign green bond this summer, with a further issuance later in 2021 as the UK looks to build out a green curve. Green gilt issuance for the financial year will total a minimum of £15bn. The government also commits to reporting the contributions of green gilt spending towards social benefits such as job creation and levelling up [RB p63]
The government will offer a green retail savings product through NS&I in the summer of 2021. This product will be closely linked to the UK’s sovereign green bond framework and will give all UK savers the opportunity to take part in the collective effort to tackle climate change, benefiting from the innovative reporting stands planned for the green gilt programme [RB p63]
The government is launching a £20m programme to support the development of loathing offshore wind technology across the UK; launching a new £68m UK-wide competition to implement several first-of-a-kind energy storage prototypes or technology demonstrators; launching a £4m UK-wide competition for the first phase of a biomass feedstocks programme, to support the rural economy in making improvements to the production of green energy crops and forestry products [RB p64]
14. Achieve Equality through Diversity and Inclusion
What policies in the Budget work to create a level playing field on opportunity for all, to fully unleash Britain’s potential for the first time?
There are no policies that specifically relate to Achieve Equality through Diversity and Inclusion.
The 14 Levelling Up Goals are a common architecture for levelling up Britain that bring together policy makers, business and education.
For more information about the Levelling Up Goals, please visit www.levellingupgoals.org