Chancellor Rishi Sunak has announced his Budget. Here is a list of the main points. Full details of all the announcements made today in the Autumn Budget 2021 and our analysis thereof will follow shortly.
- UK economic growth revised up – The OBR now expects GDP to expand by 6.5% this year compared to the 4% it forecast at the Budget in March. The Bank of England is predicting 7.4% growth.
- £7bn business rates cut, with the cancellation of next year’s planned increases and a 50% discount on business rates for a year for companies in the retail, hospitality, and leisure sectors.
- Alcohol duty overhaul – Introducing a new alcohol duty system, including “draught relief” – a new, lower rate of duty on draught beer and cider, cutting duty by 5%.
- Universal Credit – Cutting the Universal Credit Taper Rate from 63p to 55p and increasing work allowances by £500 per year to help working families with the cost of living.
- Minimum wage increase by 59p an hour – A wage boost for millions of this country’s lowest paid workers.
- Fuel duty freeze – Fuel duty frozen for 2022-23.
- Research and development – The target is to increase research and development investment (R&D) investment to £22bn.
- Transport – More than 50 local road upgrades while more than £5bn is being committed to local roads maintenance.
- Air Passenger Duty – Flights between airports in England, Scotland, Wales and Northern Ireland will be subject to a new lower rate of Air Passenger Duty from April 2023.
- New Multiply programme – To help up to 500,000 adults improve their numeracy, transforming their prospects.
- Childcare – £300m for “A Start for Life” parenting programmes, with an extra £170m by 2024/25 going into paying for childcare.
- Museums and galleries – Tax relief extended for two years, to March 2024. Also doubling the tax relief for theatres until 2023.
- Housing – £24bn marked for “a multi-year housing settlement”.
- Bank surcharge cut – The corporation tax surcharge applied to banks and building societies in the UK has been cut from 8% to 3%.
- Education fund – An additional £2bn for education recovery in England.
If you have any concerns or queries relating to the announcements made within the Autumn Budget, our tax experts are available to guide you through the tax maze and help you with bespoke solutions to ensure that you and your business are as tax efficient as possible. Contact your usual Beavis Morgan Partner or email info@beavismorgan.com.
To receive a full copy of our Budget summary report when it comes available, email georgina.swain@beavismorgan.com.