Budget 2021

[Patch]

A lot of the budget has already been trailed through the media (naughty Rishi!) but thought it might be worth discussing the budget and anything announced - but perhaps also wider chat about maximising income in relation to tax or available benefits. Though not promoting avoidance!

Budget 2021 live: ‘many to face living standards squeeze’ despite Sunak spending pledges – as it happened

IFS warns take-home pay will fall due to rising prices and taxes; Sunak announces universal credit taper reduction and fuel and alcohol duty cuts

www.theguardian.com

https://www.bbc.co.uk/news/live/uk-59035120

 

[Jon]

No doubt the self employed will just get run over like they have done previously

We certainly can't keep borrowing like we have been the last year and a half due to Covid and I wonder if today is going to be the start of trying to crawl back that money in some shape or form

HOWEVER


and


So it looks like this budget is all about helping people more in terms of letting them keep more of their income

However that can be offshot by upping the price on thing they CAN control like booze, fags, road tax etc.

 

[Patch]

No doubt the self employed will just get run over like they have done previously

We certainly can't keep borrowing like we have been the last year and a half due to Covid and I wonder if today is going to be the start of trying to crawl back that money in some shape or form

HOWEVER
.....

So it looks like this budget is all about helping people more in terms of letting them keep more of their income

However that can be offshot by upping the price on thing they CAN control like booze, fags, road tax etc.

Indeed - it looks to be way of rewarding and cushioning the blow of inflation to those on UC who are working, whilst not 'rewarding' those who are on UC but not working .

The minimum wage is a concern for me, and good for raising it and rightly so for those on it - whilst I earn above that , the gap will be significantly reduced between min wage and my work - and I doubt my employer will increase wages to match the % increase in minimum wage - so a bit a squeeze in the middle will occur in terms of living costs.

 

[Jon]

I sat on a public sector pay freeze for YEARS during the last recession and it's brutal while all your other costs in life are going up!

 

[Jon]

This seems to be the main takeaways

• Planned rise in the duty on spirits, wine, cider and beer will be cancelled
• Simplification of alcohol duties will see the number of rates drop from 15 to six
• Stronger red wines, fortified wines, and high-strength ciders will see a small increase in their rates
• Rates on many lower alcohol drinks including rose wine, fruit ciders, liqueurs, lower strength beers and wines to fall
• All sparkling wines to pay same duty as still wines of equivalent strength
• New, lower rate of duty on draught beer and cider will cut the rates by 5%
• Flights between airports in the UK nations will be subject to a new lower rate of Air Passenger Duty from April 2023
• Financial support for English airports to be extended for a further six months
• A new ultra long haul band in Air Passenger Duty for flights of over 5,500 miles will be introduced from April 2023
• Schools to get an extra £4.7bn by 2024-25
• There will be nearly £2bn of new funding to help schools and colleges to recover from the pandemic
• Schools funding to return to 2010 levels in real terms - an equivalent per pupil cash increase of more than £1,500
• £300m will be spent on a "Start for Life" parenting programmes, with an additional £170m by 2024-25 promised for childcare
• A UK-wide numeracy programme will be set-up to help improve basic maths skills among adults
• Whitehall departments to receive rise in overall spending, totalling £150bn over the course of this Parliament
• Universal Credit taper rate will be cut by 8% no later than 1 December, bringing it down from 63% to 55%
• Business rates retained and reformed
• New 50% business rates discount will apply in the retail, hospitality, and leisure sectors, up to a maximum of £110,000
• Planned rise in fuel duty to be cancelled amid the highest pump prices in eight years
• £24bn earmarked for housing: £11.5bn for up to 180,000 affordable homes, with brownfield sites targeted for development
• A 4% levy will be placed on property developers with profits over £25m rate to help create a £5bn fund to remove unsafe cladding
• Funding will rise by an average of £4.6bn for the the Scottish Government, £2.5bn for the Welsh Government, and £1.6bn for the Northern Ireland Executive
• Levelling Up Fund will mean £1.7bn will be invested in local areas across the UK
• Government backing projects in Aberdeen, Bury, Burnley, Lewes, Clwyd South, Stoke-on-Trent, Ashton under Lyne, Doncaster, South Leicester, Sunderland and West Leeds
• Extra £2.2bn for courts, prisons and probation services
• Tax relief for museums and galleries will be extended for two years, to March 2024
• Core science funding to rise to £5.9bn a year by 2024-25

 

[homie]

The only thing of note for me is the increase in minimum wage which I will benefit from. Although after inflation and the national insurance increase it will hardly make any difference.

I'm surprised how many tax cuts and how much spending the govt are planning to do, with no significant tax rises to pay for it. How many bazillions of pounds is the country in debt by now?

 

[Jon]

The only thing of note for me is the increase in minimum wage which I will benefit from. Although after inflation and the national insurance increase it will hardly make any difference.

I'm surprised how many cuts and how much spending the govt are planning to do, with no significant tax rises to pay for it. How many bazillions of pounds is the country in debt by now?

to the bank of England? LOTS!

 

[homie]

I'm surprised how many tax cuts and how much spending the govt are planning to do, with no significant tax rises to pay for it. How many bazillions of pounds is the country in debt by now?

Found it. https://www.nationaldebtclock.co.uk/

Ouch.

Those two figures below per person are thousands by the way. Should be a comma not a decimal point.

 

[Jon]

Tax burden to rise by £3,000 per family, warns think tank

The Budget and other government measures will make households worse off, says the Resolution Foundation.

www.bbc.co.uk

It looks like it's going to be the rise in costs for families that are going to hit them the most!