Our Chancellor, Rishi Sunak has recently announced the contents of his Autumn Budget 2021.
Mr Sunak said his plans were focused on the “post-Covid” era and would pave the way for an “economy of higher wages, higher skills, and rising productivity”.
With the largest increase in public spending in over a century, the headline policies include a rise in the national living wage and a pledge to spend billions on the NHS.
Read on to discover how the Autumn Budget 2021 will affect me.
How will changes in the Autumn Budget 2021 affect me?
- Universal Credit is raised for 1,700,000 people with 8p boost to pay packet
This is a £2bn-a-year change and means many working benefit claimants will keep 45p of every extra pound they earn, previously 37p.
However, this will not help support those out of work or make up for the £20-a-week cut the government made recently (amounting to £6 billion).
- Developers will pay £5,000,000,000 in tax to fix homes with dangerous cladding
Large construction companies will pay additional levy charges to create a £5 billion fund.
Any developers with a profit of over £25 million will pay a 4% rate.
There will also be an investment for 180,000 affordable homes to be built.
- Fuel duty will not increase as prices at the pumps hit a record high
Many of us were impacted by the fuel prices and shortages over the last few months, with some completely unable to travel.
To help with this, prices will now be frozen at 57.95p and the planned fuel duty rise has been cancelled.
- Millions of key workers set to be paid more as Mr Sunak confirms end to pay freeze
The year-long public sector freeze has ended but Mr Sunak has not yet clarified whether the pay rises will be above the current 3.1% inflation rate.
- The national living wage rises to £9.50 an hour
This is a 59p rise per hour for those 23 and over and will support those on minimum wage.
- Pints of beer cut by 3p and sparkling wine is about to become cheaper
The planned increase in duty on spirits, wine and beer has been cancelled. For the recovering hospitality industry, this will be a much needed £3 billion tax cut.
- Christmas could be more pricey this year as inflation ‘likely to rise’
Inflation is predicted to spike at 4% next year as our economy takes on the dual effects of Covid and Brexit.