Budget and Spending Review – October 2021

Highlights from the Chancellor of the Exchequer’s speech include…

  • To reduce the burden of business rates and support investment in England, the government is freezing the business rates multiplier for a further year, a tax cut worth £4.6 billion over five years.
  • A new 50% business rates discount for businesses in the retail, hospitality, and leisure sectors in England has been announced. Overall reducing the burden of business rates in England by £7 billion over the next five years, alongside a commitment to modernise the business rates system with more frequent revaluations every three years.
  • Temporarily increasing the headline rates of tax relief for theatres, museums, orchestras and galleries across the UK from 27 October 2021 to 31 March 2024, increasing the relief organisations can claim as they invest in new productions and exhibitions.
  • New investment incentives in England totalling almost £750 million, including tax relief for eligible green investments and a new ‘business rates improvement relief’.
  • An extension of the temporary £1 million level of the Annual Investment Allowance to March 2023, providing more upfront support to help businesses across the UK to invest and grow.
  • Increasing public investment in UK R&D to £20 billion by 2024-25, representing an increase of around a quarter in real terms.
  • From 1st April 2022 the National Living Wage will increase by 6.6% to £9.50 an hour. Young people and apprentices will also see pay increases as the National Minimum Wage rates will also increase next April. Alcohol duties will be frozen across the board for the third year running saving consumers £3 billion.
  • Apprenticeship funding in England will increase to £2.7 billion in 2024-25 and continue to invest over £900 million for each year of this Spending Review across Great Britain on work coaches to ensure Universal Credit claimants receive the best support to find employment.
  • £90 million to extend the Job Entry Targeted Support Scheme to the end of September 2022 – helping those unemployed for between three and twelve months across Great Britain find work.
  • An increase in adult skills funding by 29% in real terms compared to 2019-20 – this funding will go towards a range of policies in England such as continuing the Prime Minister’s Lifetime Skills Guarantee to offer free Level 3 courses for adults, and quadruple the current scale of Skills Bootcamps.
  • £560 million of new funding through the UK Shared Prosperity Fund for the new UK-wide Multiply programme which will support up to half a million adults to improve their numeracy.
  • Funding for the Restart scheme in England and Wales will continue, providing intensive and tailored support to long-term unemployed people to help them find work

To read all the measures announced in today’s Budget and Spending Review, visit gov.uk.