On Wednesday, 27 October 2021 Rishi Sunak, The Chancellor of the Exchequer, presented the UK Government’s budget for 2021. Below we review some of the key points relating to businesses, including
- The Chancellor announced an increase in the Nation Living and National Minimum Wage for those employed, for those over 23 – the National Living wage, the rate will increase 6.6% from £8.91 today, to £9.50 per hour in April 2022, this increase will be around £1000 per annum for someone working full time around 35 hour per week.
|Age Range||Current Rate per Hour||New Rate as of April 2022||Percentage Increase|
|23 and over||£8.91||£9.50||6.6%|
- 50% discount for business rates for Hospitality, retail and leisure industry, capped at £110,000. This will also include high street personal care businesses such as hairdressers.
- Additional support for the hospitality sector specifically pubs which will see alcohol duty that will cut tax for lower alcoholic strength drinks including beers, fruit ciders, and weaker wines. The planned increase in duty for Whisky, beer wine and cider will also be cancelled. Smaller producers of alcoholic drinks will be supported with the introduction of a new small producer relief, which builds on the success of the Small Brewers Relief. The premium rate tax on sparking wine will be end, along with a reduction in the tax on Rose.
- Nationwide scheme called multiply will be introduced to help adults with their numeracy skills
- £3billion worth of investment into skills and education, this is being aimed at tackling the skills shortage currently seen following the pandemic.
- The Recovery Loan scheme will be extended by 6 months
- New and Growing Businesses will be able to receive finance, to be delivered via the government British Business Bank over the next 2 years.
- Businesses will be able to make improvements to their business buildings by taking advantage of a business rate exemption for green property improvements to help make the buildings more energy-efficient, such items will include solar panels and heat pumps.