Autumn Budget 2021 Round Up
Today, Chancellor Rishi Sunak put forward the budget for the next three years. Here are the main points following the announcement:
- Due to the HGV driver shortages, the Government is introducing temporary Visas, extending the HGV levy suspension until 2021 and freezing the vehicle excise duty for HGV vehicles
- Government funding is increasing for Scotland (£4.6bn), Wales (£2.5bn) and Northern Ireland (£1.6bn)
- National Living Wage will increase to £9.50ph from April 2022
- Corporation tax will increase as planned, rising to 25% from April 2023
- Planned rise in fuel duty has been cancelled
- Super-deduction remains in place until March 2023 allowing businesses to claim a super-deduction in the form of a first-year relief of 130% on new plant and machinery fixed assets
- Domestic flights from April 2023 will be lower in duty, and long haul flights over 5,500 miles will be higher in duty
- Support for foreign aid will return to 0.7% of GDP by 2024/2025
- 1% of GDP towards scientific funding.
- Business rates will be re-evaluated every three years from 2023
- From 2023, there will be a new ‘business rates improvement relief’ allowing businesses to make property improvements, and for 12 months, pay no extra business rates
- Retail, hospitality and leisure businesses will receive a discount of 50% on their business rates for one year, capped at a maximum discount of £110k.
Pubs & Alcohol Duty:
- The previous alcohol duty has had a complete overhaul to make it less complex…
- From now on, the stronger the drink (ABV) the higher the rate of duty applicable
- Lower strength drinks such as rose, fruit ciders and liqueurs will attract a lower tax rate
- A ‘small producer relief' will be introduced to support independent brewers creating products that sit at less than 8.5% ABV
- The duty premium of 28% on sparkling wine will be removed and these will be taxed in line with other alcohol based on its alcoholic content
- ‘Draught Relief’ will be introduced for pubs cutting duty on beer and cider sold in pubs. They will be 5% lower than previously and applicable to kegs over 40L. This will permanently reduce the cost of a pint by 3p from Feb 2023
- The previous planned increase in spirits duty will be cancelled from midnight tonight.
“Growth up, jobs up, debt down”Rishi Sunak.