As presentations go, it was hard to beat. Coming in at 15 minutes less than last year’s Budget speech and clearly outlining his three-part plan – protecting jobs and livelihoods, strengthening the public finances, and enabling an investment-led recovery – Rishi Sunak delivered an extraordinary Budget for extraordinary times.

While he didn’t shy away from acknowledging the scale of the country’s difficulties – borrowing at levels unseen since the Second World War and the total fiscal response to the pandemic is projected to be £407 billion – he also spoke of “possibilities”. He said there would be a swifter and more sustained recovery than forecast by the Office for Budget Responsibility, with the economy returning to pre-Covid levels by the middle of next year – six months earlier than expected.

Many of the most positive initiatives had already been trailed, such as the extension of the furlough scheme to the end of September. This will provide businesses with the certainty they need, but with employers expected to contribute 10 per cent from July and 20% in the following two months it will be interesting to see how uptake pans out. When the Government last tried this, it didn’t work.

The extension of the Self Employment Income Support Scheme (SEISS) to cover those who started a business last year will enable 600,000 more sole traders and freelancers to benefit, but there remains a gap. Those who are paid via dividends from companies they run are still not eligible to claim.

Among the new announcements was a “super-deduction” tax incentive to encourage capital expenditure in the UK and create jobs. Under the scheme, which will cost the Treasury £25bn over the two years it is in effect, businesses investing in qualifying plant and machinery will be able to cut their tax bill by up to 25p for every £1 they invest.

Confirmation that the UK’s first Infrastructure Bank will be established this spring to invest in green private and public projects underlined the Government’s ambitions to grow the green economy. The initiative will be supported by £12bn of capital with the aim of securing at least £40bn in investment.

Following the UK’s success in the vaccine race, the Chancellor spoke of how he wanted the UK to become a “scientific superpower”, revealing a review of R&D tax credits to encourage investment and visa reform to lure “science superstars”. Also designed to boost growth was the announcement that a number of freeports will be pursued across the UK. The Chancellor confirmed they would be special economic zones with different rules to make it easier to do business, such as favourable VAT levels, tax breaks and cheaper customs.

Somebody, somewhere of course, has to pay up and we learned that corporation tax will increase from 19% to 25% for the UK’s biggest companies in April 2023, delivering a £47bn boost to the Treasury. In isolation, such an increase seems breathtaking yet compared to competitor nations the UK is still an attractive location for inward investment. Prior to this rate increase, to boost the cash flow of struggling businesses and recognising the longer impact of the pandemic, the ability to carry back losses to generate a tax repayment has been extended to two years.

A freeze on the personal allowance, while not affecting the pound in people’s pockets, will help recover a further £19bn as wages increase.

North of the Border, the Scottish Government will receive an additional £1.2bn in funding through the Barnett Formula and City Growth Deals in Ayrshire, Argyll and Bute, and Falkirk will be accelerated. There was also £27m for the Aberdeen Energy Transition Zone and £5m for the Global Underwater Hub in Scotland, the first stage in delivering the North Sea Transition Deal.

Despite the enormity of the impact the pandemic has had on public finances, this Budget provides a route map beyond Covid-19 together with the degree of certainty that businesses need to implement the final step of the Chancellor’s recovery plan and increase investment within in the UK.

John McAuslin is a tax partner at Johnston Carmichael