Rishi Sunak outlined government spending plans when he revealed the 2021 Budget today.
The Budget focused on the “post-Covid” era, according to the Chancellor, and will pave the way for the “Prime Minister’s economy of higher wages, higher skills, and rising productivity”.
Here are the main points affecting people living in London:
– The minimum wage will increase to to £9.50 an hour next year, up from the current £8.91.
– The Universal Credit taper rate will be cut by 8% from no later than December 1, bringing it down from 63% to 55%.
– Alcohol duty is being “radically” simplified by introducing a system designed around the principle of “the stronger the drink, the higher the rate”.
– A “draught relief” will apply a lower rate of duty on draught beer and cider, cutting the tax by 5% on drinks served from draught containers over 40 litres and bringing the price of a pint down by 3p.
– A planned rise in fuel duty will be cancelled because of pump prices being at their highest level in eight years.
– Flights between airports in England, Scotland, Wales and Northern Ireland will be subject to a new lower rate of Air Passenger Duty from April 2023.
– Mr Sunak confirmed a levy will be placed on property developers with profits over £25 million at a rate of 4% to help create a £5 billion fund to remove unsafe cladding.
– An extra £2.2 billion has been announced for courts, prisons and probation services, including £500 million to reduce the courts backlogs.
– £300 million will go towards “A Start for Life” parenting programmes, with an extra £170 million by 2024/25 going into paying for childcare.
– The Chancellor said core science funding will rise to £5.9 billion a year by 2024-25, a cash increase of 37%.
– A new 50% business rates discount will apply in the retail, hospitality, and leisure sectors, with eligible businesses able to claim a discount on their bills of up to a maximum of £110,000.
Have you got a story for us? You can contact us here.
Sign up to our newsletters to get updates sent straight to your inbox.