Budget 2021 announcement: What did Rishi Sunak say in his speech today, Wednesday, October 27?
CHANCELLOR Rishi Sunak has begun to unveil his second Budget of the year today, with economic plans that will take us through the winter.
But what has he announced so far? Here’s all you need to know….
What did Rishi Sunak announce in Autumn Budget speech?
‘Stronger economy’
The Chancellor opened by telling the nation: “Employment is up. Investment is growing. Public services are improving. The public finances are stabilising.
“And wages are rising. Today’s Budget delivers a stronger economy for the British people: Stronger growth, with the UK recovering faster than our major competitors.
“Stronger public finances, with our debt under control.
“Stronger employment, with fewer people out of work and more people in work. Growth up, jobs up, and debt down: Let there be no doubt – our plan is working.”
Speeding up supply
Rishi revealed that the HGV levy on goods vehicles will be suspended for another year – and vehicle excise duty for them will also be frozen.
He hopes that will go some way to helping ease the supply chain issues that have left some empty shelves and left shoppers worrying about Christmas.
MORE ON THE AUTUMN BUDGET 2021
Job training
Sunak today unveiled a £3billion skills revolution to train thousands of British workers for better-paid jobs.
He announced plans to turbo-charge post-16 education to give everyone the chance find jobs and earn more.
There will be £200m a year to support school holiday camps and the school food programme.
His slew of new policies includes free, personal maths coaching for 500,000 adults who failed to make the grade at school.
Extra funds will also be pumped into modern apprenticeships, skills bootcamps and new T-level technical courses for teenagers.
Foreign Aid
The Chancellor has confirmed that the government is scheduled to return to aim of spending 0.7% of GDP on foreign aid by the end of this Parliament – in 2024.
Housing
Sunak today revealed plans for 160,000 new homes to be built on brownfield land in England thanks to an almost £2billion pot.
The £1.8billion fund forms part of the settlement for Michael Gove’s Department for Levelling Up, Housing and Communities.
It will see tens of thousands of homes built on previously developed land not in use – equivalent to 2,000 football pitches – as well as improved transport links, schools and other public areas.
The project will likely help the government reach its target of building 300,000 homes a year by the mid-2020s.
Crime blitz
The Chancellor confirmed an extra £435million was being pumped into a pot to tackle crime and support victims.
It includes £50million for neighbourhoods to install more CCTV and street lighting following the horrific kidnap and murder of Sarah Everard.
The current money to help victims such as domestic abuse survivors will rise by 85 per cent to £185million.
Another £80million has also been earmarked for the CPS to push through more rape and sexual assault cases.
Cash for schools
The Chancellor has announced an extra £4.7billion will be alocated to schools by 2024/5.
He is also tripling the investment into kids with special educational needs and disabilities – creating 30,000 new school places.
NHS push
Sunak has announced more cash for the NHS to tackle growing waiting lists and whittle down the backlog.
He said: “At the start of this Parliament, resource spending on healthcare was £133bn. Today’s Spending Review confirms that by the end of the Parliament, it will increase by £44bn to over £177bn.
“And the extra revenue we’re now forecast to raise from the Health and Social Care Levy is going direct to the NHS and social care as promised.”
He promises more hospitals, more nurses, more appointments, and more diagnostic centres.
Air passenger duty
Sunak went on to announce reforms to air passenger duty.
He said: “Right now, people pay more for return flights within and between the four nations of the United Kingdom than they do when flying home from abroad.
“We used to have a return-leg exemption for domestic flights but were required to remove it in 2001. But today I can announce that flights between airports in England, Scotland, Wales and Northern Ireland will from April 2023 be subject to a new lower rate of Air Passenger Duty.”
Mr Sunak added: “We’re also making changes to reduce carbon emissions from aviation. Most emissions come from international rather than domestic aviation.
“So I’m introducing, from April 2023, a new ultra long haul band in air passenger duty – covering flights of over 5,500 miles, with an economy rate of £91.
“Less than 5% of passengers will pay more, but those who fly furthest will pay the most.”
Fuel duty
The Chancellor has abandoned plans to clobber drivers with an extra £1.27 every time they filled up an average 45-litre tank.
The hated fuel duty was due to go up from 57.95p per litre to 60.79p — potentially costing drivers £66 extra a year per car.
Pubs’ business rates
The Chancellor has announced that hospitality businesses – like restaurants and pubs – will be given “at least” a 50 per cent discount in business rates
Public sector pay
The Chancellor put the squeeze last year on 2.6 million teachers, civil servants and police officers’ wages because of Covid.
But today’s budget has ended this pain.
Cheaper drinks
Sunak today announced beer, fruit cider and rose wine will be cheaper for consumers as he revealed a shake-up of booze tax rules.
After a year-long review, the Chancellor has confirmed a major overhaul of tax on alcohol in today’s Autumn Budget.
Mr Sunak said the new system will make taxation “simpler, fairer and healthier” today’s Budget speech.
Lower strength alcohol, such as some beers, rose wine and fruit cider, will be taxed less – making it cheaper for customers.
Meanwhile, high strength booze will cost more.
What else could be announced in the Budget?
Minimum wage
Mr Sunak is expected to boost millions of workers’ pay packets in the Budget tomorrow.
He is set to increase the minimum wage from the current £8.91 to £9.50 an hour.
Read our Budget 2021 live blog for live updates
It will come into force from April 1 next year, and works out at an extra £1,073.80 per year.
This is roughly the same amount of money that Brits claiming Universal Credit were receiving under the £20 a week uplift which was axed earlier this month.
Heating bills
It is thought Sunak will not axe VAT on household energy bills in today’s Budget – despite families being clobbered with eye-watering rises.
The chancellor is under pressure to scrap the 5% VAT charge on heating bills for six months from November 1 to help bills be more affordable during the winter.
It would save the average household £38 a year at a time when energy bills are reaching record-breaking highs.
Customers are being battered with a £139 increase to their bills after the price cap rose earlier this month.
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Taper rate
The government has been under pressure from charities and organisations to cut the punishing taper rate and allow claimants to keep more of their cash.
It is rumoured that Rishi Sunak will potentially slash the taper rate in his Budget today.
It’s understood that the DWP’s main spending review ask – to cut the taper rate down to 60p – will be backed by Rishi’s team.
This will help to soften the blow for the lowest paid ahead of a tough winter while families are being battered by soaring energy, food and fuel costs.
When was the Autumn Budget 2021 announced?
Rishi Sunak’s Budget speech is currently taking place in the House of Commons now.
Budget talks usually last about an hour.
How can I watch Rishi Sunak’s Budget speech?
You can watch Mr Sunak’s Budget speech live at the top of this article.
You can also watch on The Sun’s YouTube channel.
Afterwards we will have highlights of the speech for you to watch again.
The speech is also being aired on major news channels like BBC News and Sky News.
And it is available on BBC iPlayer and Sky News’ YouTube channel.