Autumn Budget 2021 Summary

By Debbie Franklin, Director of Tax and property tax specialist

Chancellor Rishi Sunak presented the Autumn Budget 2021 today as the UK continues to deal with financial fallout of the coronavirus (COVID-19) pandemic.

See our short video summary for some of the key business and tax measures and a reminder of important previous announcements presented by Director of Tax, Debbie Franklin.

Key measures/announcements at a glance:

• OBR expects inflation to average 4% over the next year
• Annual UK growth revised up from 4% to 6.5% this year
• Unemployment to peak at 5.2%
• New Charter for Budget Responsibility
• 3% GDP to be spent on capital investment
• Debt to peak at 85.7% GDP in 2023/24
• Spending 0.7% GDP on aid to return by 2025
• £4.8bn grant funding for local councils
• £300m 'Start for Life' fund for families
• Extra £4.7bn for schools budget by 2024-25
• Tax relief for museums extended to 2024
• Tax relief for arts sector doubled to 2023
• £5.7bn for transport schemes in England
• £22bn R&D investment by 2026-27
• R&D investment target pushed back to 2027
• Consultation on charge cap for pensions
• Criteria for new high skill visas outlined
• R&D tax relief to be focused on UK activity
• New £560m UK-wide numeracy programme
• Passenger duty cut for domestic flights
• Extra passenger duty on long-haul flights
• £1m/year investment allowance extended
• Business rates revaluation every 3 years
• New 'business rates improvements relief'
• 50% rates discount for retail and leisure
• Alcohol duty rates streamlined
• New lower 'draught relief' for pubs
• Duty on pub pints cut by three pence
• Increase in alcohol duty cancelled
• Planned rise in fuel duty cancelled
• National living wage to increase to £9.50 per hour from April 2022
• Universal credit reform 'to make work pay'
• Universal Credit Taper Rate from 63p to 55p