Autumn Budget 2021 Headlines

Blog Posts

Daniel McAllister | 27th October 2021

Autumn Budget 2021 Headlines

Today the Chancellor Rishi Sunak gave his second budget of the year. In advance of our detailed budget guidance tomorrow here are the headlines from his speech:

  • An end to public sector pay freeze
  • Increase in National living wage to £9.50/hour
  • Inflation expected to hit 4% average next year
  • Growth forecast up from 4% to 6.5% in 2021 and 6% in 2022
  • Unemployment estimated at 5.2% next year lower than original forecast of 11.9%
  • Borrowing forecast to fall from 7.9% to 3.3% of GDP next year, then to 1.5% in 5 years
  • 5 Fiscal Rules for public finances
  • Creative Tax Reliefs doubled to April 2023
  • 4% Levy on property developers with profits over £25m to provide fund to tackle unsafe cladding
  • R&D Tax Relief to be extended to new areas and more focussed on UK activities
  • Reduction of Air Passenger Duty for Internal UK flights from April 2023, and new higher ultra long haul band introduced
  • Annual Investment Allowance of £1m for capital equipment extended to March 2023
  • Business Rates will be retained but with more frequent revaluations and new reliefs
  • Increase in Business Rates multiplier next year to be cancelled
  • 50% Business Rates Discount for Retail, Hospitality & Leisure Sectors for 1 year only (2022/23) but capped at £110,000
  • Consultation on an online Sales tax
  • Reform of alcohol duties, including relief for draught beers aimed at pubs
  • Planned increase on fuel duty cancelled
  • Universal Credit Taper Rate reduced from 63% to 55% (by 1 December)