Budgets, Interest Rates & The Coronavirus!

Date Published 11 March 2020

Earlier today policymakers reduced interest rates from 0.75% to 0.25%, taking borrowing costs back down to the lowest level in UK history today.

The Bank of England said it would also free up billions of pounds of extra lending power to help banks support firms and small businesses. The news comes as the chancellor has announced further measures in todays budget to support growth and jobs. The latest cuts come at a time where the country fears what the outcome of the coronavirus epidemic could have to the economy.

Italy and China have already seen lock downs in certain areas with curfews in place and travel bans implemented in outbreak areas.

The Chancellor today pulled out what seemed like and endless cheque book to help steer the UK economy through the turbulence predicted over the coming months, with extra cash for the NHS, rate reductions for small retailers, duties frozen on some consumer goods and changes to the National Insurance system.

The only news regarding changes to stamp duty had already been promoted in the Conservative election manifesto, which is the introduction of a 2% surcharge on the purchase of UK investment properties by non-resident overseas buyers. This will come into effect in April 2021.