Summary of the 2021 Government Autumn Budget

Written by Hannah S on 27 October 2021

This year’s Autumn Budget was announced today (27 October 2021), which outlined the next steps of the UK’s Covid-19 economic recovery.

Here’s a summary of the main points mentioned in the Chancellor’s speech:

Taxation and wages

  • National Living Wage is set to increase next year by 6.6%, to £9.50 an hour
  • The Universal Credit taper rate will be cut by 8% no later than 1 December, bringing it down from 63% to 55% – allowing claimants to keep more of the payment
  • Business rates will be retained and reformed
  • A 50% business rates discount rate will be introduced for the retail, hospitality, and leisure sectors in England in 2022-23 (up to a maximum of £110,000)
  • The planned rise in fuel duty is going to be cancelled amid the highest pump prices in eight years

Housing

  • £24bn has been earmarked for housing
  • 4% levy will be placed on property developers with profits over £25m rate to help create a £5bn fund to remove unsafe cladding
  • £640m a year to address rough sleeping and homelessness

Other pledges made during the Budget

  • Contactless payment limit will increase to £100 in a bid to boost retailers
  • £7 billion for areas outside of London to ‘level-up’ transport
  • £5 billion for health-related research and development, including towards genome sequencing and tackling health inequalities
  • £3 billion to drive a ‘skills revolution’
  • £1.4 billion fund to funnel money into key innovative sectors and a new talent network to woo foreign talent into UK industries
  • £850 million to ‘breathe life’ back into cultural hotspots
  • £700 million for a new fleet of patrol boats for Britain’s borders
  • £700 million to improve sports and youth clubs
  • £560 million to provide personalised maths coaching
  • £500 million towards support for families and children, including new family hubs
  • £435 million for crime prevention and the Crown Prosecution Service, part of which aims to improve the response to rape and sexual assault cases
  • £5 million for cutting-edge treatments for veterans

If you’re struggling with your finances, you can contact us now to receive free, confidential, fully-regulated debt advice.


Filed under Industry News

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.