On Wednesday 27th October 2021, Chancellor Rishi Sunak presented his third Budget announcement, detailing plans to “build back better” with ambitions to level up and reduce regional inequality. A lot of the budget was focused again on rebuilding after the Pandemic, with Chancellor Rishi Sunak stating that we cannot expect the economy to return to its pre-pandemic size until 2022.
The budget was set on the Spending Review 2021 (SR21) which saw every department’s overall spending increase in real terms as a result. Because of this, total departmental spending is set to grow in real terms at 3.8% a year on average – a total cash increase of £150 billion a year by 2024-25. This is the largest real-term increase in overall departmental spending for any Parliament this century.
This Budget Announcement saw Chancellor Sunak claim that taxpayers’ money will be spent where it makes the most difference to people’s daily lives: creating high-wage and high-skilled jobs, reducing NHS waiting lists, putting more police on the streets, upgrading roads and railways, and building new homes, hospitals and schools.
Some of the key measures announced in the Budget Announcement were:
- New temporary business rates relief in England for eligible retail, hospitality, and leisure properties for 2022/23
- A change in the earliest age from which most pension savers can access their pension savings without incurring a tax charge. From April 2028 this will rise to 57
- The retention of the £1 million annual investment allowance until 31 March 2023
- Individuals disposing of UK property on or after 27 October 2021 now have a 60 day CGT reporting and payment deadline, following the completion of the disposal.
- A complete overhaul of alcohol duties that will see drinks taxed on their strength
- The cancellation of the previously announced rise in fuel duties
- Pubs supported with a reduction in draught beer and cider duty
- An ultra-long-haul band of air passenger duty was introduced.
Another key point announced in the most recent budget summary is that the national living wage will rise following recommendations from the Independent Low Pay Commission. The rise will be applicable from next April and is seeing rates cross the board increase but most notably a 6.6% for over 23y/olds. Chancellor of the Exchequer, Rishi Sunak has said that the rise “ensures we’re making work pay and keeps us on track to meet our target to end low pay by the end of this Parliament”.
This Autumns budget had the aim of ‘building back better’ and so focused on investing in strong public services, driving economic growth, leading the transition to net-zero, and supporting people and businesses. To find out further specifics on the budget, have a look at Animo Associates Budget Summary.
How can Animo Help?
At Animo Associates, we are fortunate to have a team of specialist consultants who are able to offer expert insights and so, if you have any further queries on how this Autumn’s budget could affect you or your business, please do not hesitate to get in contact with one of our team today. Get in contact with one of our consultants today by calling +44 (0)207 060 0835, emailing firstname.lastname@example.org, or by filling in a contact form below.