The Autumn Budget

The Autumn Budget, released on 27 October 2021, by the Chancellor of the Exchequer set out the government’s tax and spending plans for the year ahead. At present the level of inflation is around 3.1% and the UK economy is recovering better than the OBR had previously expected: with a recovery to pre-COVID levels now by 2022. Other healthy signs include the economic growth for the year expected to be 6.5% and then an impressive 6.0% in 2022.

Rishi Sunak, the Chancellor, introduced a wide array of government commitments with regards to the economy which included:

• A rise in the National Living Wage to £9.50 per hour (up 6.6%)
• Consultation on an online sales tax
• Cancellation of a fuel duty rise
• Business rates to be discounted 50% for retail, hospitality, and leisure in England
• Dividend tax rates increased by 1.25%

Government spending commitments will be:

• Core science funding to rise to £5.9bn per annum. by 2024-25
• Government backing projects in cities outside of the South
• £1.7bn for a Levelling Up Fund
• £7bn for transport projects

Other policies included:

• Extra £4.7bn for schools by 2024-25
• UK-wide numeracy programme to improve basic maths skills for adults
• Lower rate of domestic Air Passenger Duty from April 2023
• Rates for lower alcohol drinks to fall
• £24bn allocated for housing

If you would like to read the full Autumn Budget then you can click here.