COLCHESTER’S independent shops, restaurants, pubs and music venues have been given a boost as the Chancellor set out his tax and spending plans for the next year in the House of Commons.

New Chancellor Rishi Sunak, who only got the key role last month when Sajid Javid unexpectedly resigned, gave his speech to MPs in Parliament yesterday.

Even before it started the Budget was dominated by the impact of the coronavirus outbreak.

Yesterday, the Bank of England announced it would be cutting the base interest rate to 0.25 per cent in a bid to counteract volatility in the financial markets.

As part of a £30 billion package of measures, the Chancellor promised the NHS would have whatever it needed to cope with the outbreak.

The Government also committed to extending statutory sick pay to those who are forced to self-isolate from day one and said businesses with less than 250 employees would be refunded two weeks worth of employees’ sick pay.

There was a promise of a £500 million hardship fund to help vulnerable people and business interruption loans of up to £1.2 million for small firms.

There was a boon for small businesses as business rates for premises like shops, restaurants, arts galleries, B&Bs and music venues with rateable values under £51,000 will be abolished next year.

The Chancellor also promised a total of £2 billion would be made available in £3,000 grants for hundreds of thousands of small businesses across the UK.

Elaine Jiggins, owner of Caffe Sala, in Eld Lane, Colchester, welcomed the news to lower rates and the support on offer for those facing the strain of the coronavirus outbreak.

“It is a really uncertain time for businesses at the moment and it is great to actually see the Government are taking it seriously and acknowledging businesses need support,” she said.

“The rate abolishment will really help my business month to month but equally we are having to be careful about what is out there and the chance people’s spending habits could change at any minute.”

Pub landlords were given some good news with the announcement business rates discount for pubs will increase from £1,000 to £5,000 next financial year.

Duties on spirits, beer, cider and wine have also been frozen.

Andy Pilgrim has owned the Victoria Inn, in North Station Road, Colchester, with Sheena Valentine for nine years.

He welcomed the measures but said they wouldn’t revive a struggling industry on their own.

“To be honest the freeze in duty was expected by a lot of people in the industry,” he said.

“I am glad it hasn’t been changed as last time they lowered it by a penny it didn’t help independent pub owners like me.

“The duty freeze measure means pubs won’t be better off but they won’t be worse off either

“The business rates relief will certainly help quite a few pubs.

“The problem is the whole industry is split down the middle into two distinctive types, tie and free of tie, and both need different legislation to help.

“What helps me as a freeholder will not help thousands of tie pub owners and vice versa.”

The Treasury also pledged to triple the average net investment made over the past 40 years into rail and road, affordable housing, broadband and research.

Significant funds, £600 billion over five years, will be spent on roads, rail, broadband and housing through to 2025.

Mr Sunak said: “We have listened and will now deliver on our promise to level up the UK, ensuring everyone has the same chances and opportunities in life, wherever they live.

“By investing historic amounts in British innovation and world-class infrastructure, we will rebalance opportunities and lay the foundations for a decade of growth for everybody.”

The east of England is set to benefit from some of the additional £500 million per year in funding over each of the next five years to fix road defects.

Mr Sunak said the cash would help “eradicate the scourge of potholes” across England.

Colchester councillor Dave Harris said the money could not come soon enough.

“I suspect it will never be enough but anything which will make the situation a bit better is good news,” he said.

“The sooner it is switched on to spend the better. We don’t want the cash coming in half a year, we need it as soon as possible.

“Hopefully they can start planning so when the money comes in we’re ready to go.

“I can take the highways authority to about 50 potholes in my ward which need doing.”

The Budget commits £5 billion to support the rollout of gigabit-capable broadband in rural parts of the country.

Lloyd Felton, chief executive of Aldham firm County Broadband, praised the investment.

He said: “Upgrading the UK’s underlying outdated digital infrastructure is essential to unlock the country’s economic growth potential and will enable households, businesses and communities to move out of the digital slow lane and compete with the rest of the world post-Brexit.”

There were also some measures designed to help the average resident.

Fuel duty will remain frozen, National Insurance Contributions tax threshold will rise from £8,632 to £9,500 and the so-called Tampon Tax on sanitary will be abolished.

The Government committed to a plastic packaging tax from April 2022 and scrapping subsidies for fuel used in off-road vehicles were announced although Labour leader Jeremy Corbyn criticised the lack of action on climate issues.

He labelled the Chancellor’s plans as a whole “an admission austerity has been a failed experiment”.

The economy is predicted to grow by 1.1 per cent this year, not taking into account the impact of coronavirus, the slowest growth since 2009.

Public sector net borrowing will rise this year to 2.1 per cent of the gross domestic product.