28th October 2021 - Alicia Buckingham

Budget and Spending Review – Autumn 2021

With a focus on alcohol duty cuts and a lower rate of Air Passenger Duty from April 2023, which are included in the budget, you might think the Conservative government are planning more parties and more holidays under the guise of reducing the damage to these sectors following the COVID 19 pandemic.

Perhaps you’d be right, although some of their policies do seem to the hit the mark. However, when they give, they also take away.

What they’re giving:

What they’re taking away:

Herbert Scott says:

There have been no shocks in this budget, although the government’s major tax change designed to tackle the NHS backlog and social care had already been announced: a 1.25 percentage point rise in National Insurance and dividend tax rates from April 2022, paid by both employers and workers.

The main take up from a financial planning point of view is that the Office for Budget Responsibility predicts that inflation will rise to an average of 4% over the next year – further bad news for anyone still holding large sums in cash – and that annual growth is set to rebound by 6.5% this year, followed by 6% in 2022.

Do you want to know more?

For those who want the full details, please click here to see the government’s summary.

If you wish to discuss any of the budget changes that are mentioned in this article or are wondering how to introduce some inflation protection into your financial plan, please feel free to contact us here.

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