Autumn Budget 2021 Summary

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

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