When is the Autumn Budget 2021 and what will Rishi Sunak announce? Explained

Asia's Tech News Daily

In the past month, a £20 a week Universal Credit lifeline has been revoked, furlough has been terminated and an energy crisis has unravelled – with household bills set to rise by hundreds over the next year.

At the same time, the Chancellor has pushed through the biggest rise in personal taxes in two decades – a 1.25% National Insurance hike that will flip into a social care levy next April to raise £12billion more for care and the NHS.

Sunak says the economy is thriving – with 1.2million job vacancies and the number of people in work now back to pre-Covid levels – but households are facing a cost of living crisis and the Bank of England has warned inflation could top 5% by Christmas.

The Tories have already broken their promise to raise taxes – meaning there is no telling how far the Chancellor will go this month when he delivers his latest Autumn Budget to the nation.

The income tax personal allowance has already been frozen at £12,570 and the higher rate threshold at £50,270 from next April until 2026.

With the national debt now at its highest since 1963, we take a look at what could be announced on Wednesday, October 27.

What are you hoping the Chancellor will announce? Let us know in the comments below

When is the Autumn Budget 2021 and what will Rishi Sunak announce? Explained
© Alex Lentati/LNP Vacancies might be rising but the economy is still behind what it was before Covid

Universal Credit

The Chancellor is being pressed to increase benefits by more than £700million a year to cushion the blow of withdrawing the £20-a-week Universal Credit uplift. Any possibility of this will be revealed in the Budget.

It comes as charities and campaigners have warned this month’s cut will trigger a record high in families using food banks this winter.

The Chancellor ended the £5billion a year Covid support on October 6 but introduced a council fund to help those struggling the most instead.

Richard Lane, StepChange director of external affairs, told The Mirror: “The recent creation of a £500m Household Support Fund will help people to deal with one-off emergencies. But when faced with today’s cut, along with the end of furlough, rocketing energy prices and rising inflation, millions will face a daily battle just to get by.

“We agree with the Chancellor when he says that everyone should be able to makes ends meet, but this will be immeasurably more difficult for households with £1,040 less to live on. The Government has the opportunity to set this right by assessing the impact of the cut in the coming weeks and reversing it before the damage becomes too deep.”

VAT, alcohol and cigarettes taxes

When is the Autumn Budget 2021 and what will Rishi Sunak announce? Explained
© Getty Images A tax on sparking wine is expected to be axed for Christmas

Budget day is typically the day when cigarette prices go up – usually at around 6pm. This is one tax that tends to rise every year. It serves a dual purpose – to encourage people to quit and to raise cash.

The last rise in November 2020 put 22p on a pack of 20 cigarettes and 65p on a 30g pack of hand-rolling tobacco. This year, we’re expecting a bigger rise than usual as it rises with inflation – which is at a record 3.1%.

The Chancellor is also understood to be planning an overhaul of alcohol duty – a move which could slash the prices of products, such as beer and wine, in a small win for the public.

Under current rules, there are 15 different bands of taxation across four product types: beer, cider, wine and spirits.

However the system has been described as complicated and outdated and there are now plans to sharpen it up.

For example, beer carrying more than 7.5% alcohol by volume (ABV) is currently taxed at just under 25p per litre.

However, non-fizzy cider that contains the exact same amount of alcohol is taxed at 61p, while sparkling cider is taxed at £2.88 if it contains more than 5.5% ABV but less than 8.5% ABV.

Premiums on sparkling wine, which are currently between £2.88 and £3.81 could be completely scrapped and brought in line with wine.

Should this happen, consumers could expect to save 83p per bottle of fizz as the tax would drop to just under £2.98 per litre.

Elsewhere, a cut in VAT for hospitality and tourism businesses ended last month. It saw the tax temporarily reduced from 20% to 5%.

With much of the hospitality industry now operating at full capacity, it is unlikely that this Covid cut will be extended, meaning pubs and restaurants will now continue on the normal tax rate.

Combined with supply shortages and pay rises, that means struggling businesses who have passed this relief onto consumers will also most likely put their prices back up.

Minimum wage

The Treasury has confirmed a rise in the National Living Wage from next April – with hourly pay for those over 23 to rise from £8.91 to £9.50 an hour. The 59p boost which means a full-time worker on the National Living Wage will see a pay rise averaging at £1,000 a year.

The National Living Wage was introduced in 2016 and sets the minimum hourly pay a person over the age of 23 can earn when working.

Rishi Sunak is also set to announce a wage rise for young people under the age of 23. For those aged 21-22 the National Minimum Wage rate increases to £9.18 an hour, up from £8.36 – a 82p increase.

The minimum hourly wage for an apprentice will also see a boost next year, with an 18 year old apprentice in an industry like construction seeing their minimum hourly pay increase by nearly 12%, going from £4.30 to £4.81 an hour.

Is the increase enough? Let us know your thoughts in the comments section below

A £500million fund for childcare

The Chancellor has already confirmed a £500million fund for children and families will open up this year.

This will include £82million to set up family hubs in 75 new council areas as well as a ‘one-stop-shop’ to deliver parenting programmes (£50m), breastfeeding advice (£50m) and mental health support (£100m) to families in need.

Dozens of childcare providers have gone bankrupt since the government introduced a free childcare scheme in 2016. The hourly pay per child has been frozen ever since, meaning nurseries have had to make up the shortfall – despite having no income.

Holiday taxes

Plane tickets to Australia, South Africa and Japan will become more expensive if an Air Passenger Duty rise goes ahead. This is the tax that passengers pay on flights – it is usually included in the ticket price.

The Chancellor is expected to confirm previously-mooted plans to reform the tax, levying a higher rate on long-haul flights.

Currently APD is charged in two bands – journeys under and over 2,000 miles. A new third band could cover distances over 6,000 miles.

State pension

The government has already confirmed that the state pension ‘triple lock’ will be suspended for a year due to a skewed increase in average earnings during Covid.

The triple lock guarantees that the state pension will increase every year by inflation, average wage earnings growth, or 2.5% (whichever is highest).

Next year it will rise by around 3.1% – equating to £290 a year for those on the full, new state pension.

See how your state pension will rise next year, here.

Cladding tax

Earlier this year the government introduced a £3.5billion fund to pay for cladding removal or remediation in buildings over 18 metres, or six storeys, high in England.

There are now rumours that Rishi Sunak has plans for a residential property developer tax to pay for this removal of flammable cladding from high-rise buildings.

The tax will be paid by housebuilders with profits of more than £25million. It is expected to raise at least £2billion over the next decade.

What about climate change?

The Budget will take place shortly before the international climate summit COP26.

In the March 2021 Budget, the Chancellor announced NS&I green savings bonds. These have now launched, but the interest rates are poor at just 0.65% over three years. The accounts are aimed at those who are willing to sacrifice interest to go green – a choice savers should not have to make.

This week the Prime Minister also unveiled a replacement of the Green Homes Grant to make homes more eco-friendly.

New £5,000 boiler grants will pay households who switch to heat pumps, effectively reducing the price to make them more appealing to homeowners.

Right now, a heat pump can set you back up to £14,000. However, while 22million homes will need to switch, just 90,000 will get the grant initially.

Energy price reform

Soaring energy prices are the biggest concern facing most households this winter – and are rapidly becoming one of the biggest problems the government needs to tackle too.

With many families facing the choice between affording food or heating after wholesale gas prices rose 250%, the government may offer a lifeline to those households.

Rishi Sunak could slash VAT on household energy bills to help struggling families through the winter cost of living crisis.

Or he could extend the Warm Home Discount scheme, to allow more people to benefit, or increase it from its current £140.

The winter fuel payment could also be increased for pensioners who will be among the hardest hit this winter. The amount has been frozen for years, but there is precedent as the government previously introduced a temporary uplift of £50 in 2009-11, although this was under Labour.

Of course, any such payouts would come at a cost – estimated at £2billion for the Treasury.

Council tax

All eyes are on how much funding the government will give local councils in the next 12 months.

Local councils are struggling to foot the bill for some of the new social care plans announced by the government earlier this year.

Put simply, if councils don’t get the funding from the government, they’ll have to go to the public and hike council tax.

The IFS has already predicted a potential increase of around £240 to average bills in the next few years if more central government funding isn’t given, and even its best-case scenario sees an extra £160 added to bills in the next few years.

Personal allowance

The chancellor has already frozen the income tax personal allowance at £12,570 and the higher rate threshold at £50,270 from next April until 2026.

Inheritance tax

The Chancellor dodged calls to increase inheritance tax in the March budget but tax experts say it could make the cut this time around.

Changing inheritance rules would boost the Treasury’s coffers without changing working tax rates.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Vaccine Stocks: Omicron Partially Eludes Pfizer-BioNTech In New Study

Vaccine Stocks: Omicron Partially Eludes Pfizer–BioNTech In New Study Vaccine stocks were muted Tuesday after test results indicated omicron might elude some of the protection provided by Pfizer’s Covid shot. Read more »

WATCH LIVE: Body found in New Port Richey ID'd as Kathleen Moore, Pasco sheriff says

A New Port Richey man was arrested in the death of a missing Pinellas woman Monday. Court documents follow the investigation into their relationship and what ultimately led to the ... Read more »

Bay Area remembers Pearl Harbor 80 years ago

The Bay Area remembers Pearl Harbor 80 years ago. James Torrez attacks Read more »

Soccer-Perfect Liverpool eliminate Milan as Origi and Salah seal comeback win

1 / 3Soccer-Perfect Liverpool eliminate Milan as Origi and Salah seal comeback winChampions League – Group B – AC Milan v Liverpool MILAN, Italy (Reuters) – Liverpool came from behind ... Read more »

Bank predicts $3.6 million windfall from Manafort loans

A bank that loaned former Trump campaign manager Paul Manafort $16 million expects a $3.6 million surplus from foreclosure on Manafort’s properties, even though the loans played a role in ... Read more »

Brazil's Unipar to receive $80 million deal settlement from Belgium's Solvay

FILE PHOTO: Sculpture depicting the logo of Belgian chemical group Solvay is seen at its headquarters in Brussels SAO PAULO (Reuters) – Brazilian petrochemical company Unipar Carbocloro will receive $80 ... Read more »

Omo, Kim Da Mi And Choi Woo Shik Have Worked Together Before And It's For A *Thriller* Movie

© Provided by Cosmopolitan Philippines Thanks to Itaewon Class, Kim Da Mi became one of my favorite Korean actresses of all time. Her character in the drama is fierce, determined, and although she’s a ... Read more »

Muntinlupa vaccinates over 8,000 in a day

© The Manila Times MUNTINLUPA City exceeded its daily target on Day Two of the “Bakunahan Bayanihan” campaign with more than 8,000 individuals inoculated. The Muntinlupa City Health Office (CHO) ... Read more »

Campaign launched to drum up business for pandemic-battered Manitoba retailers

© Lyzaville Sale/CBC Shoppers line up outside a Winnipeg Walmart location in late November 2020. The Manitoba Chambers of Commerce launched a “BuyLocalMB” campaign Tuesday to encourage shoppers to make ... Read more »

Aftonbladet: Man arrested for the murder of a 12-year-old girl in Sweden

According to the newspaper Aftonbladet, a man has been arrested in Stockholm under suspicion for the murder of a 12-year-old girl. She was killed in Botkyrka last year. The newspaper ... Read more »

GOP senator says Biden's 'radical' Treasury pick could 'turn banking into... the DMV'

Bill Hagery explains how much Saule Omarova would control if chosen as Comptroller of the Currency Read more »

DICT successfully launched six Emerging Technologies Workshops in partnership with Huawei Philippines

The Department of Information and Communications Technology (DICT), in partnership with Huawei Philippines, successfully hosted six Emerging Technologies Workshops for government employees this year. © Provided by LionhearTV More than ... Read more »

Indigenous papal postponed to 2022 amid concerns around Omicron COVID-19 variant

OTTAWA — Indigenous leaders and residential school survivors will not travel to the Vatican as planned this month to meet with Pope Francis because of the latest threat posed by ... Read more »

ITV's Christmas TV for 2021 – including The Masked Singalong and the return of Bradley and Barney Walsh and their iconic RV…

Photo credit: ITV Get ready for Christmas classics and festive fun this Yuletide, as ITV have confirmed what will be on air this holiday season. Here is a list of ... Read more »

‘Absolutely farcical', ‘Shambles' – These Ipswich Town fans are furious following defeat to Charlton Athletic

© Provided by Football League World General view of fog before the match Ipswich Town were comfortably beaten by Charlton Athletic this evening as they failed to close the gap ... Read more »

Porto vs Atletico Madrid descends into madness after two red cards, huge touchline brawl and Pepe antics

Porto’s do-or-die Champions League clash with Atletico Madrid descended into madness in the second half with tempers fraying in Estadio do Dragao. Both sides needed a result to keep their ... Read more »

F1 news RECAP: Lewis Hamilton crash fears answered, Verstappen rapped for Saudi GP antics

The 2021 F1 season has by far and away exceeded all expectations with Lewis Hamilton and Max Verstappen incredibly on the same amount of points heading into the final race ... Read more »

Dad of ‘Rust' armorer ‘not worried' about possibility of daughter going to prison

Thell Reed spoke to ABC News about the tragic accident. Courtesy of ABC News The father of Hannah Gutierrez-Reed, the 24-year-old armorer of “Rust,” said he doesn’t believe his daughter ... Read more »

I'm A Celeb shock as Snoochie Shy brutally kicked out of camp – and fans are fuming

SNOOCHIE Shy was kicked out of I'm A Celebrity tonight – leaving fans fuming. But the 29-year-old DJ, model and presenter didn't seem too down about it, telling her campmates: ... Read more »

UK security outlook more dangerous now than at any time in past 30 years, warns new head of armed forces Admiral Sir Tony Radakin

In an annual chief of the defence staff speech to the Royal United Services think tank, Admiral Radakin described a sense of "back to the future", with autocracies confronting democracies. Read more »

Opinion: Cool, calm and collected — Merkel leaves but her political style remains

© Provided by dw.com Angela Merkel wisely chose when to leave office People initially underestimated the German chancellor — but she has led four governments and mastered a series of ... Read more »

The joke's on us, South Africa. The cruel logic of Omicron travel bans — debunked

Wealthy nations were quick to ban southern African nations from entering their borders when the Omicron variant of Covid-19 was identified — but not against each other. Unfortunately, this type ... Read more »

Rangers discover four Europa League foes as Erling Haaland and Borussia Dortmund is the early nightmare draw

Rangers and Gio van Bronckhorst have discovered half of the teams they could be drawn with in the Europa League knockout stage. The Ibrox side can’t overturn Lyon’s top spot ... Read more »

Alternate attack offers Liverpool optimism heading into tricky winter run

(Liverpool FC via Getty Images) The Champions League group stage has been effectively over for three weeks for Liverpool, but in typical fashion for this Jurgen Klopp side they went ... Read more »

Viliame Mata: Edinburgh No 8 to miss Saracens match and 1872 Cup as club await medical report

Edinburgh Rugby have suffered a setback ahead of a busy festive programme with the news that Viliame Mata has been ruled out for the foreseeable future. © Viliame Mata, right, ... Read more »

University of Pretoria study finds that some hand sanitisers are substandard

© https://www.123rf.com/stock-photo/coronavirus.html?oriSearch=black+business&sti=nwa579di4v817os8iw|&… © chai89/123rf.com CAPE TOWN – Some commercial off-the-shelf hand sanitisers in Tshwane are substandard and do not contain the recommended alcohol content. A University of Pretoria study has ... Read more »

Max Verstappen's dad insists Mercedes 'edge' unfair in furious rant at F1 and Toto Wolff

Max Verstappen‘s father Jos has unleashed a tirade of criticism in the direction of Mercedes team principal Toto Wolff and the sport of Formula One in general ahead of this ... Read more »

Surge in piracy costing W. Africa nations: UN

© PIUS UTOMI EKPEI Special forces of the Nigerian navy during the five-day joint military exercise on fighting piracy between Nigeria and French navy. The surge of maritime piracy in ... Read more »

Ordinary South Africans reflect on the Constitution

Friday, 10 December 2021 marks 25 years of our country’s Constitution. Maverick Citizen will publish articles throughout the week commemorating the occasion with various reflections from ordinary South Africans and ... Read more »

Global calls grow for the lifting of the southern African travel ban

Omicron is now spreading inside Britain. Doesn’t this mean London should lift the controversial travel ban on South Africa and other southern African countries, as the horse has already bolted? ... Read more »

Vaccine mandates in the retail industry pick up, but many companies remain reluctant to enforce the jab

Barring two large retailers in South Africa, the broader retail industry has mostly tiptoed around the issue of mandating its workers to be vaccinated against Covid-19 while the country is ... Read more »

Video: 'It's practically criminal': Brooke Shields SLAMS 1981 Barbara Walters interview after being grilled over her 'measurements', being sexualized and THAT Calvin Klein campaign at just 15

Read more »

Video: Hawaii is pounded by slow-moving 'Kona' storm that has dumped TWO FEET of rain on the island state and left more than 5,000 without power: Locals prepare for mass evacuation 

Read more »

Video: Marjory Taylor Greene says Jan. 6th defendants are being 'abused' and treated 'worse than we treat terrorists at Gitmo' and with some being 'force-fed gluten food' 

Read more »

Video: Trump considered WITHDRAWING Supreme Court Justice Kavanaugh's nomination after Senate hearing where he said 'I like beer' and ex-president thought judge sounded too 'apologetic', Mark Meadows claims in book

Read more »

Cloudy skies, scattered rains over Visayas, Caraga, Bicol due to the shear line

© Arun Sankar/AFP rain thumbnail umbrella thumbnail weather thumbnail Shaun Curry/AFP The shear line will be affecting the eastern section of Visayas while the northeast monsoon will be affecting Luzon ... Read more »

Pagcor finances evacuation center project in Eastern Samar

© The Manila Times Eastern Samar Vice Gov. Maria Caridad Sison-Goteesan (7th from right) and Philippine Amusement and Gaming Corp. (Pagcor) acting Vice President for Corporate Social Responsibility Ramon Stephen ... Read more »

U.S. CEO fires 900 employees over three-minute Zoom call

© Provided by Global News Vishal Garg, the CEO of Better.com, appears in a screengrab of video shared of the Zoom call. The CEO of Better.com might want to consider ... Read more »

Normalcy by June if Omicron stays less virulent, says expert

© Provided by The Times of India MUMBAI: Life could get back to normal by June 2022 if Covid’s latest avatar, Omicron, turns out to be less virulent than other ... Read more »

'Brazen' N.S. prison assault calls for sentences that deter prison violence: Crown

HALIFAX — A prosecutor presented evidence of rising violence in Nova Scotia’s jails Tuesday as he called for tough sentences against inmates who took part in a “brazen” and orchestrated ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic