Autumn Budget and Spending Review 2021 Speech

The October 2021 United Kingdom budget, officially known as the Autumn Budget and Spending Review 2021. A Stronger Economy for the British People, was a budget statement made by

Chancellor of the Exchequer The chancellor of the Exchequer, often abbreviated to chancellor, is a senior minister of the Crown within the Government of the United Kingdom, and head of His Majesty's Treasury. As one of the four Great Offices of State, the Chancellor is ...

Rishi Sunak Rishi Sunak (; born 12 May 1980) is a British politician who has served as Prime Minister of the United Kingdom and Leader of the Conservative Party (UK), Leader of the Conservative Party since October 2022. He previously held two Cabinet of ...

on 27 October 2021. It was the third and final consecutive budget delivered by Chancellor Rishi Sunak, before his resignation in July 2022. 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".

Key issues

BBC News BBC News is an operational business division of the British Broadcasting Corporation (BBC) responsible for the gathering and broadcasting of news and current affairs in the UK and around the world. The department is the world's largest broadca ...

reported six key issues expected to be addressed in the budget: *

Value-added tax A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end ...

on energy bills for the crises in fuel supply and natural gas suppliers *

Alcohol tax Alcohol laws are laws in relation to the manufacture, use, being under the influence of and sale of alcohol (also known formally as ethanol) or alcoholic beverages that contains ethanol. Common alcoholic beverages include beer, wine, (hard) c ...

Capital gains tax A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, Bond (finance), bonds, precious metals, real estate, and property. Not all count ...

Student loans A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest r ...

* Minimum wage rise * Pension rate allowance Other issues include regional transport,

High Speed 2 High Speed 2 (HS2) is a planned high-speed railway line in England, the first phase of which is under construction in stages and due for completion between 2029 and 2033, depending on approval for later stages. The new line will run from its m ...

and the

Northern Powerhouse The Northern Powerhouse is a proposal to boost economic growth in the North of England by the 2010–15 coalition government and 2015–2016 Conservative government in the United Kingdom, particularly in the " Core Cities" of Hull, Manchester ...

Changes announced

The budget increased in-work support through the

Universal Credit Universal Credit is a United Kingdom social security payment. It is means-tested and is replacing and combining six benefits for working-age households with a low income: income-related Employment and Support Allowance, income-based Jobseeker's ...

system by increasing the work allowances by £500 a year, and reducing the post-tax deduction taper rate from 63% to 55%. It also simplified alcohol duties in a way which benefited lower-strength drinks and cut the surcharge on UK bank profits to 3% and raised the surcharge threshold to £100m. Development funding of £5m was allocated for the reopening of

Wellington Wellington ( mi, Te Whanganui-a-Tara or ) is the capital city of New Zealand. It is located at the south-western tip of the North Island, between Cook Strait and the Remutaka Range. Wellington is the second-largest city in New Zealand by me ...

and

Cullompton Cullompton () is a town and civil parish in the district of Mid Devon and the county of Devon, England. It is north-east of Exeter and lies on the River Culm. In 2011 the parish as a whole had a population of 8,499 while the built-up area of ...

railway stations.

Devon County Council Devon County Council is the county council administering the English county of Devon. Based in the city of Exeter, the council covers the non-metropolitan county area of Devon. Members of the council (councillors) are elected every four years to ...

was given £50,000 toward the cost of creating of a new

Tavistock railway station Tavistock railway station is a proposed new station to serve Tavistock in Devon, England, in order to reinstate a rail connection between the town and Plymouth, about to the south. History Tavistock used to have two railway stations, both now cl ...

and the reconstruction of the line to serve it. £560m of investment was announced for the

Levelling Up White Paper "Levelling up" is a political policy first articulated in the 2019 Conservative Party manifesto that aims to reduce the imbalances, primarily economic, between areas and social groups across the United Kingdom. It seeks to do so without acting t ...

Response

Keir Starmer Sir Keir Rodney Starmer (; born 2 September 1962) is a British politician and barrister who has served as Leader of the Opposition and Leader of the Labour Party since 2020. He has been Member of Parliament (MP) for Holborn and St Pancras ...

tested positive for

COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was COVID-19 pandemic in Hubei, identified in Wuhan, China, in December ...

and so was replaced by

Ed Miliband Edward Samuel "Ed" Miliband (born 24 December 1969) is a British politician serving as Shadow Secretary of State for Climate Change and Net Zero since 2021. He has been the Member of Parliament (MP) for Doncaster North since 2005. Miliband ...

Prime Minister's Questions Prime Minister's Questions (PMQs, officially known as Questions to the Prime Minister, while colloquially known as Prime Minister's Question Time) is a constitutional convention in the United Kingdom, currently held as a single session every W ...

Shadow Chancellor of the Exchequer The Shadow Chancellor of the Exchequer in the British Parliamentary system is the member of the Shadow Cabinet who is responsible for shadowing the Chancellor of the Exchequer. The title is given at the gift of the Leader of the Opposition and ...

Rachel Reeves Rachel Jane Reeves (born 13 February 1979) is a British politician and economist serving as Shadow Chancellor of the Exchequer since 2021. A member of the Labour Party, she has been Member of Parliament for Leeds West since 2010. Born in Lewis ...

responded to the budget in the

House of Commons The House of Commons is the name for the elected lower house of the bicameral parliaments of the United Kingdom and Canada. In both of these countries, the Commons holds much more legislative power than the nominally upper house of parliament. ...

Leader of the Liberal Democrats The Liberal Democrats are a political party in the United Kingdom. Party members elect the leader of the Liberal Democrats, the head and highest-ranking member of the party. Liberal Democrat members of Parliament also elect a deputy leader of ...

Ed Davey Sir Edward Jonathan Davey (born 25 December 1965) is a British politician who has served as Leader of the Liberal Democrats since 2020. He served in the Cameron–Clegg coalition as Secretary of State for Energy and Climate Change from 2012 t ...

said the budget made Sunak appear "out of touch". Tom Harris in ''

The Daily Telegraph ''The Daily Telegraph'', known online and elsewhere as ''The Telegraph'', is a national British daily broadsheet newspaper published in London by Telegraph Media Group and distributed across the United Kingdom and internationally. It was fo ...

'' described the budget as

Brownist The Brownists were a group of English Dissenters or early Separatists from the Church of England. They were named after Robert Browne, who was born at Tolethorpe Hall in Rutland, England, in the 1550s. A majority of the Separatists aboard the ' ...

. The

Institute for Fiscal Studies The Institute for Fiscal Studies (IFS) is an economic research institute based in London, United Kingdom, which specialises in UK taxation and public policy. It produces both academic and policy-related findings. The institute's aim is to "a ...

(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". The

Resolution Foundation The Resolution Foundation is an independent British think tank established in 2005. Its stated aim is to improve the standard of living of low- and middle-income families. Appointments In June 2015, the former Conservative MP David Willetts to ...

calculated that the budget would increase incomes of the poorest fifth of households by 2.8% but reduce middle incomes by about 2%. The budget increased public spending to levels not seen since the 1970s, according to ''

''. The IFS also noted that changes to alcohol duty may not apply to Northern Ireland because of the

Northern Ireland protocol The Protocol on Ireland/Northern Ireland, commonly abbreviated to the Northern Ireland Protocol, is a protocol to the Brexit withdrawal agreement that governs the unique customs and immigration issues at the border on the island of Ireland betwe ...

agreed between the UK and the European Union following

Brexit Brexit (; a portmanteau of "British exit") was the withdrawal of the United Kingdom (UK) from the European Union (EU) at 23:00 GMT on 31 January 2020 (00:00 1 February 2020 CET).The UK also left the European Atomic Energy Community (EAEC or ...

References

{{Rishi Sunak COVID-19 pandemic in the United Kingdom

Budget A budget is a calculation play, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environmenta ...

Budget, 10 United Kingdom, 2021 10 2021 10 Rishi Sunak