The Autumn Budget and Spending Review 2021 was delivered on Wednesday 27th October by the Chancellor, Rishi Sunak.
What was announced and how might it affect you?
The speech began with claims that the economy is back on track, as the Chancellor unveiled a post-Covid spending package of £150 Billion by 2024/25.
The successful vaccination programme and the government’s economic plan have led to faster than anticipated growth, and a strong recovery in employment across the country. It therefore means that the Government’s focus now shifts to investing in public services, driving economic growth, leading the transition to net zero, and supporting people and businesses.
Caution is advised as inflation is expected to rise to 4% over the next year. Explained by two forces;
- Economies reopening following the global pandemic which means the demand for goods is higher than the supply chains can meet.
- And surges in energy consumption means that global wholesale prices of oil, coal and gas have more than doubled.
Key points from the Budget
Changes to duty on alcohol. The stronger the drink, the higher the rate. This means that sparkling wines, like Prosecco, rosé wine, fruit ciders, liqueurs, lower strength beers and wines will see their costs go down. However, some drinks such as stronger red wines, fortified wines, or high-strength ‘white ciders’ will be taxed more.
Fuel Duty. The planned rise in fuel duty will be cancelled.
Air Passenger Duty. This will be reduced for domestic flights between airports in England, Scotland, Wales and Northern Ireland. However, there will be an increase in Air Passenger Duty for long haul flights, over 5,500 miles.
Universal Credit. The work allowance will be increased by £500 per year and the taper rate will drop from 63p to 55p, both measures to be implemented no later than 1st December 2021.
Business Rates. A new 50% business rates discount for businesses in the retail, hospitality, and leisure sectors, including pubs, music venues, cinemas, restaurants, hotels, theatres, and gyms.
National Living Wage. This will be increased from April next year by 6.6%, to £9.50 an hour. For a full-time worker, that’s a pay rise worth over £1,000.
CGT on Property. The reporting deadline will be extended from 30 days to 60 days.
Reference
For the full Budget Report 2021 visit Budget documents.