_(St_Edwards_Crown).svg) | |
| Presented | Wednesday 27 October 2021 |
|---|---|
| Country | United Kingdom |
| Parliament | 58th |
| Party | Conservative Party |
| Chancellor | Rishi Sunak |
TheOctober 2021 United Kingdom budget, officially known as theAutumn Budget and Spending Review 2021. A Stronger Economy for the British People, was abudget statement made byChancellor of the ExchequerRishi Sunak on 27 October 2021.[1] It was the third and final consecutive budget delivered by Sunak before his resignation in July 2022.[2]
Many of the announcements to be made in the budget were previewed before budget day, drawing criticism and anger from the House of Commons. In response to the criticism, Sunak said the budget "begins the work of preparing for a new economy".[3]
BBC News reported six key issues expected to be addressed in the budget:[4]
Other issues included regional transport,[5]High Speed 2 and theNorthern Powerhouse.[2]
 | This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(October 2021) |
The budget increased in-work support through theUniversal Credit system by increasing the work allowances by £500 a year, and reducing the post-tax deduction taper rate from 63% to 55%.[6] It also simplified alcohol duties in a way which benefited lower-strength drinks[7] and cut the surcharge on UK bank profits to 3% and raised the surcharge threshold to £100m.[8]
Development funding of £5m was allocated for the reopening ofWellington andCullompton railway stations.[9]Devon County Council was given £50,000 toward the cost of creating of a newTavistock railway station and the reconstruction of the line to serve it.[10]
£560m of investment was announced for theLevelling Up White Paper.[11]
Labour leaderKeir Starmer tested positive forCOVID-19 and so was replaced byEd Miliband atPrime Minister's Questions.[12]Shadow Chancellor of the ExchequerRachel Reeves responded to the budget in theHouse of Commons.[13]Leader of the Liberal DemocratsEd Davey said the budget made Sunak appear "out of touch".[14]Tom Harris inThe Daily Telegraph described the budget asBrownite.[15]
TheInstitute for Fiscal Studies (IFS) said the budget would leave millions of people worse off in 2022, predicting that inflation and higher taxes on incomes would offset small wage increases for middle earners, while poorer households would feel "real pain".[16][17] TheResolution Foundation calculated that the budget would increase incomes of the poorest fifth of households by 2.8% but reduce middle incomes by about 2%.[18] The budget increased public spending to levels not seen since the 1970s, according toThe Daily Telegraph.[19]
The IFS also noted that changes to alcohol duty may not apply to Northern Ireland because of theNorthern Ireland protocol agreed between the UK and the European Union followingBrexit.[20]
.jpg)