Autumn Budget 2021: Key Points

Budget

 

 

 

 

 

 

 

 

 

Chancellor Rishi Sunak has announced his Autumn Budget in the House of Commons. We have summarised the key points below.

 

 National Living Wage

  • The national living wage will increase from £8.91 to £9.50 an hour from April 2022

 

Universal Credit

  • Universal Credit taper rate will be cut by 8% before 1 December, decreasing it from 63% to 55%
  •  The work allowance will be increased by £500

 

Fuel Duty

  • The planned rise to fuel duty will be cancelled amid high prices 

 

Education

  • Funding for each pupil will be returned to 2010 levels, in an increase worth £1,500 a pupil
  • The government will launch a UK-wide numeracy service called Multiply to help 500,000 adults improve their numeracy skills

 

Business taxes

  • The bank surcharge will be cut from 8% to 3%
  • Business rates will be reformed to support companies. Next year’s planned increase in the business rates multiplier will be cancelled
  • 50% business rates discount for companies in retail, hospitality and leisure sectors, up to a maximum of £110,000
  • £1m Annual Investment Allowance will be extended to March 2023

 

Pubs and alcohol duty

  • The UK’s main duty rates on alcohol will be cut from 15 to six in a simplified system
  • Higher strength alcoholic drinks will attract higher duties, including stronger red wines, fortified wines and high-strength ciders. Lower strength drinks – such as rose, fruit ciders and liqueurs – will attract a lower tax rate than currently
  • Pubs and bars will benefit from a new “draught relief”
  • The cost of a pint will be permanently cut by 3p
  • There will be a small brewers’ relief, including for cider makers