Autumn Budget 2021

 

The Chancellor, Rishi Sunak presented his Autumn Budget and spending review to Parliament on Wednesday 27 October 2021. The Chancellor backed Boris Johnson's plans to increase spending in order to boost productivity to deliver a "high wage, high skill economy" to help families in regions of  lower incomes. 

 

Whilst announcing a 3% rise over the next three years in public sector services to assist the recovery from the Covid-19 crisis, and to protect against rising inflation. 

 

Taxes are however heading towards their highest levels in over seventy years. 

 

Inflation in September was 3.1% and is expected to rise to an average of 4% 

Unemployment is anticipated to peak at 5.2% next year 

Annual growth this year is set to rebound by 6.5% 

Wages have increased in real terms by 3.4% (pre-pandemic) 

Borrowing as a percentage of GDP is forecast to fall from 7.9% this year to 3.3% next year. 

 

♦ Government spending is set to rise from 39.8% of GDP pre-pandemic to 41.6% by 2026-2027 (the highest level since the 1970's). 

 

Corporate Taxation 

 

Corporation tax for all Limited Companies to rise from 19% to 25% in 2023. 'Bank Surcharge' on profits cut from 8% to 3% in same year. 

 

Business Rates 

 

A 50% business rates discount for the retail, hospitality, and leisure sectors in England in 2022-23, up to a cap of £110,000 per business. 

 

From 2023, every business will be able to make property improvements for twelve months and pay no extra rates. 

R & D Spending 

 

Target set of £22 billion a year to be put back by two years to 2026-2027, with investment to rise to £20 billion in 2024-2025. 

 

Fuel Duty 

 

Planned rise in fuel duty to be cancelled amid the highest pump prices in eight years. 

 

Alcohol Duty 

 

The planned rise in the duty on spirits, wine, cider and beer has been cancelled. 

 

Levelling Up 

 

The Prime Minster's pledge to bring prosperity across the UK, the fund will mean £1.7bn will be invested in local areas across the UK. 

 

Education 

 

Schools will get an extra £4.7 billion by 2024-25. 

 

Income Support 

 

The universal credit taper relief (this is the rate at which it is withdrawn as earnings rise) will reduce by 8% from 63% to 55%, allowing claimants to keep more of the payment. 

 

National Living Wage 

 

The national living wage for 23 and over will increase by 6.6% from £8.91 per hour to £9.50 per hour (please click below to view all hourly rates): 

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