The contactless payment limit is to be increased to £100, Rishi Sunak will announce in the Budget today.
Rishi Sunak will announce in the Budget today that the contactless payment limit is to be increased to £100. It will be the second rise to the limit after climbing from £30 to £45 at the start of the Covid-19 pandemic last April. Experts believe the move will provide a much-needed boost to the retail sector as shops welcome customers back on April 12.
However, industry sources have shown alarm at the new threshold, warning of a rush in fraud. The Financial Conduct Authority said that it was important that payments regulation keeps speed with consumer and merchant expectations.
The Chancellor will highlight the popularity of ‘pinging’ payments, as shoppers continue to avoid cash. He said, “London’s retail sector is famous across the world, with Oxford Street, Covent Garden and Westfield seen as global destinations for shopping. As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth across the capital.”
The furlough scheme will be continued until the end of September in the Budget today. Around 3.8 million people were on furlough by the end of last year. It hit a peak of 8.9 million last May. As the pandemic leaves, the country still struggling,. The Government is expected to extend the £20-per-week uplift to Universal Credit for six months. Pubs, restaurants and shops will be supported by a £5 billion grant project as the third national lockdown begins to ease in England. Each premise could receive up to £6,000. Hospitality, hotels, gyms and personal care and leisure firms, could receive up to £18,000 as they are due to reopen later.
More than £400 million will be given to help museums, theatres and galleries reopen in England. Then the sport package will be given £300 million. The Chancellor is possible to reveal a mortgage guarantee scheme that will help home buyers purchase properties worth up to £600,000 with a deposit of just 5%.
He could increase the stamp duty holiday on homes worth up to £500,000, currently set to end in March. Mr Sunak is supposed to start his speech at around 12.30 pm on 3 march, 2021 after Prime Minister’s Questions.