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.

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