Economy expected to grow by 6.5% this year and a return to its pre-pandemic size in early 2022. Unemployment is forecast to peak at 5.2%, down from a forecast of about 12% last year. Inflation expected to average 4% next year.
Up to 400,000 retail, hospitality and leisure properties will be eligible for a new, temporary 50% business rates discount up to a maximum of £110,000 in 2022-23. This will provide support until the next revaluation, helping the businesses that make UK high streets and town centres successful evolve and adapt to changing consumer demands.
The business rates multiplier will be frozen in 2022-23, a tax cut worth £4.6 billion over the next five years. Bills for ratepayers will be 3% lower than without the freeze.
From 2023, a new business rates tax relief will support investment in property improvements so that no business will face higher business rates bills for 12 months after making qualifying improvements to a property they occupy.
The UK’s main duty rates on alcohol will be cut from 15 to six in a simplified system.
Higher-strength alcoholic drinks will attract higher duties, including stronger red wines, fortified wines and high-strength ciders. Lower-strength drinks – such as rosé, fruit ciders and liqueurs – will attract a lower tax rate than currently.
Pubs and bars will benefit from a new “draught relief” cutting duty on beer and cider sold in pubs.
A reduction in the taper rate in Universal Credit from 63% to 55%, meaning Universal Credit claimants will be able to keep an additional 8p for every £1 of net income they earn.
An increase in the amount that households with children or a household member with limited capability for work can earn before their Universal Credit award begins to be reduced – the Work Allowances – by £500 a year
- The national living wage will increase from £8.91 to £9.50 an hour from April 2022
- The Annual Investment Allowance for businesses investing between £200,000 and £1 million is extended to 31 March 2023
- Recovery Loan Scheme will be extended until 30 June 2022 with a maximum of £2 million finance available per business supporting their recovery and growth following the pandemic. The government guarantee will be reduced from 80% to 70%.
- Fuel duty to be kept frozen for 2022-23
- Vehicle Excise Duty (VED) rates for heavy goods vehicles (HGVs) will remain frozen in 2022-23, and the HGV Levy will be suspended for another 12 months from August 2022, in order to support the haulage sector
- Educational funding for each pupil will be returned to 2010 levels, in an increase worth £1,500 a pupil.
- Tax relief for museums and galleries will be extended for two years, to March 2024
- Flights between airports in the UK nations will be subject to a new lower rate of Air Passenger Duty from April 2023.
- From 27 October 2021 the deadline for residents to report and pay CGT after selling UK residential property will increase from 30 days after the completion date to 60 days