Budget 2021: Devolved nations
03 March 2021
Within his Budget speech of 2021, Chancellor Rishi Sunak confirmed that further support will be provided to the devolved nations.
Individuals and businesses alike throughout Scotland, Wales and Northern Ireland will continue to benefit from the Coronavirus Job Retention Scheme (CJRS), the Self-Employment Income Support Scheme (SEISS), loan schemes and cuts to VAT and business rates.
The Barnett formula, which is a tool utilised by the Treasury to automatically adjust the amounts of public expenditure provided to Northern Ireland, Scotland and Wales, has resulted in an additional £2.4 billion being allocated to the devolved administrations for tax year 2021-22. The breakdown is as follows:
- An additional £1.2 billion will be provided to the Scottish Government
- An extra £740 million provided to the Welsh Government
- An additional £410 million for the Northern Ireland Executive.
In addition to this, the devolved administrations will also receive £1.4 billion of funding in tax year 2021-22 which falls outside the Barnett formula.
- £27 million will be invested in the Aberdeen Energy Transition Zone and £5 million in the Global Underwater Hub
- Three City and Growth Deals in Ayrshire, Argyll and Bute, and Falkirk to receive funding more quickly.
- £4.8 million to be provided to support the development of a demonstration hydrogen hub in Holyhead, Anglesey
- The Global Centre for Rail Excellence to receive up to £30 million
- Three City and Growth Deals in North-Wales, Mid-Wales and Swansea Bay to receive funding more quickly.
- The Northern Ireland Housing Executive, Northern Ireland’s biggest landlord will be exempt from corporation tax
- Nearly 50% of the £400 million New Deal for Northern Ireland funding has been allocated, subject to business cases to:
- New systems for small traders and supermarkets to manage new trading arrangements
- Developing improved resilience in medicine supply chains
- Promoting Northern Ireland’s goods and services overseas
- Supporting skills development
- £5 million in additional funding in tax year 2021-22 to extend the Tackling Paramilitary Programme.
The Budget document can be accessed in full here.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information. Download the CIPP's Payroll: Need to know - your guide to payroll legislation and reporting for the most up to date data.