Business Rates and Energy Payments
The threshold at which high street shops start paying business rates in England is set to increase from £12,000 to £18,000, meaning businesses will pay no rates on properties below this rateable value. Toby Parkins, interim CEO at the Cornwall Chamber of Commerce, stated this change is predicted to benefit about 900 extra businesses in Cornwall. Additionally, households in council tax bands A to D in England will receive a one-off £100 Household Energy Payment funded by an extra tax on banks. The Budget also confirmed a VAT cut on electricity bills and a freeze on fuel duty until July, alongside a 3.9% legal minimum wage rise in April.
Housing and Regional Administration
For the housing market, the Budget introduced a First Time Buyer Isa, allowing savers to build up a deposit with government top-ups providing a 25% bonus on contributions of up to £4,000 each year. Andrea Drew, managing director at Lander Mortgage Services, noted that landlords face a 4% increase in tax. Regionally, the Budget announced that Devon will receive an elected mayor in 2028, while Cornwall is included on a pathway to become a Foundation Strategic Authority.