The Chancellor Rishi Sunak promised a stronger post Covid economy for the British people as he outlined spending for the next year in the Autumn Budget.
There was good news as the Chancellor announced that the Covid recovery has been faster than predicted – with the Office of Budget Responsibility revising up its growth prediction from 4% to 6.5%. In addition to this, at the height of the pandemic, unemployment was expected to peak at 12%. Today, the OBR expect unemployment to peak at 5.2% - meaning over 2 million fewer people out of work than previously feared.
The Budget focused on helping working families and vulnerable households with the cost of living, including through a significant tax cut for low-income families by reducing the Universal Credit taper rate from 63 per cent to 55 per cent, a 6.6 per cent increase in the National Living Wage to £9.50 an hour – giving a £1,000 pay rise to 2 million of the lowest paid – lifting pay restraints for public sector workers, a freeze in fuel duty for the twelfth consecutive year, and a freeze in alcohol duty – alongside radical reform to make the system simpler, fairer and healthier.
Businesses will also benefit from new measures, including a 50 per cent cut in business rates next year for 90 per cent of retail, hospitality and leisure – alongside a freeze of all rates – the creation of new business rates relief to encourage green technologies and improvements to properties, and a doubling of creative industries tax reliefs for the UK’s world-leading theatres, orchestras, museums and galleries.
Other measures to drive economic growth include record investment in our roads, railways and broadband; supporting innovation through a record £20 billion spending on R&D; and a huge uplift in skills training through T-levels, Institutes of Technology, and apprenticeships.
As part of the three year Spending Review delivered alongside the Budget, total government departmental spending will increase by £150 billion by 2024 – a 3.8 per cent annual real terms increase – the largest real terms increase this century, and record levels of capital investment not seen in 50 years.
This funding increase will help to deliver on the Conservative Government’s key manifesto promises, including building 40 new hospitals, recruiting 20,000 police officers, and raising per pupil spending in schools to record levels.
Underpinning these measures, the Budget strengthens the country’s public finances and will get debt falling again, following the £400 billion package of support put in place during the pandemic. The new fiscal rules set out today by the Chancellor will require the government to only borrow to invest and get debt falling by 2024, in line with the Conservative Government’s 2019 manifesto commitment.
Justin Tomlinson said:
“Despite the unprecedented challenges caused by the pandemic, this Conservative Government is getting on with the job and delivering on the priorities of the British people.
“This Budget will make a real difference to people in Swindon, helping working families with the cost of living, supporting businesses with their recovery, and investing in our public services so that everyone gets the world-class hospitals, schools, and police services they deserve.”
Key announcements from the Budget:
⬆️6.6% increase to the National Living Wage to £9.50/hour – For a full time worker, that’s a pay rise worth over £1,000
⬇️Cutting the Universal Credit Taper Rate by 8% - meaning nearly 2million families an extra £1,000 a year
🚑Biggest Capital investment in the NHS
👧👦£500m in extended support for children and families, including £300m to establish local Family Hubs
✏️Biggest schools funding boost in a decade, totally an extra £4.7bn by 2024-2025
🛹£560million for youth services over the next three years
⚽️£11m to support World Cup bid, and £200m to build or transform 8,500 state-of-the-art community football pitches
🌳Funding to turn 100+ areas of derelict land into ‘pocket parks’
🚂£1.7billion to invest in the infrastructure of everyday life in over 100 local areas
🏦£850 to protect museums, galleries, libraries and local culture
🎭Tax relief for theatres, orchestras, museums, and galleries doubled – worth £1/4Billion
🚗£5.7billion investment in transport settlements – 50 local roads upgrades, £5billion for local road maintenance, £5billion for buses, cycling and walking
🔬Spending £20billion a year on R&D
🧮£560million a year to support Multiply – a three year plan to improve basic maths skills
🤽♀️50% business rates discount for retail, hospitality, and leisure sectors
🍺Cutting duty on draught beer and cider, cancelling increased in duty on spirits
🚙Fuel duty frozen
