I am delighted with the Budget and three-year Spending Review announced by the Chancellor yesterday. It will ensure our public finances are secure, whilst also investing in our communities.
The Budget prioritised helping working families and vulnerable households, including through a significant tax cut for low-income families by reducing the Universal Credit taper rate from 63 per cent to 55 per cent, a 6.6 per cent increase in the National Living Wage to £9.50 an hour – giving a £1,000 pay rise to 2 million of the lowest paid.
Businesses will also benefit from new measures, including a 50 per cent cut in business rates next year for 90 per cent of retail, hospitality and leisure – alongside a freeze of all rates – the creation of new business rates relief to encourage green technologies and improvements to properties, and a doubling of creative industries tax reliefs for theatres, orchestras, museums and galleries.
Our hospitality industry has been one of the hardest-hit sectors during the pandemic, and a beer duty cut is exactly what local public publicans have been calling for - pubs will benefit from the largest cut to beer duty in 50 years!
Draught Relief will apply a new, lower rate of duty on draught beer and cider. It will particularly benefit community pubs who do 75% of their trade on draught. It’s not a freeze, it will cut duty by 5%. A long-term investment in British pubs of £100m a year. Also, the planned increase in duty on spirits like Scotch Whisky, wine, cider and beer, are all cancelled.
Other measures to drive economic growth include supporting
innovation through a record £20 billion spending on R&D; and a huge uplift
in skills training through T-levels, Institutes of Technology, and
apprenticeships. Additionally, funding for 30,000 extra school places for children
with special needs and disabilities.
As part of the three-year Spending Review delivered alongside the Budget, total government departmental spending will increase by £150 billion by 2024 – a 3.8 per cent annual real terms increase – the largest real terms increase this century.
I am also very pleased that the Chancellor announced the temporary cut to international aid will return to 0.7% of GNI by the end of the Parliament.
If you would like to read the Budget in more detail please click HERE.