What we have learnt so far ahead of tomorrow’s Budget announcement

After experiencing the worst recession in over 300 years, this Autumn budget may well be the most highly anticipated one in a generation and my colleagues and I, like many others, are eagerly awaiting tomorrow’s budget announcements from the Chancellor.

Here are a few of the things we know so far…

Government confirms their pay freeze has been lifted
A temporary pause in salary progression was introduced last November as a response to the pandemic. The pay freeze lifts for those in the public sector as tax and price rises mean families face a cost-of-living crisis, so this is a positive announcement for millions across the country, with the aim to help people on low incomes.

VAT on household energy bills will not be cut
Despite rising energy bills, which has seen around 15 million households face a 12 per cent rise in energy bills the Treasury has argued that lower-income households could be better helped through other schemes.

No change to fuel duty
Campaigners for a freeze in fuel duty have been told to expect the levy to be frozen for the twelfth year in a row.

Almost £2bn will be invested by the Government into building new homes on derelict or unused land
As part of the Government’s Net Zero Strategy to ‘Build Back Greener’, the aim is to build 160,000 more affordable and greener homes. The Government will invest money to ensure that people on lower incomes can get on the green housing ladder.

An extra £9m of “pocket change” will be allocated to create “pocket parks”.

Lots more spending commitments including…

  • £6.9bn to England’s city regions to spend on train, tram, bus and cycle projects.
  • £5.9bn to NHS England to tackle the backlog of people waiting for tests and scans.
  • £5bn over the next three years to the health department for research and development.
  • £2.6bn will be spent on creating 30,000 new school places for children with special educational needs and disabilities and towards improving school buildings’ accessibility.
  • £1.6bn over three years to roll out new T-levels for 16 to 19-year-olds
  • £550m for adult skills in England.
  • £500m to support parents and children in England
  • £850m to restore museums and art galleries
  • £700m to protect UK borders including £74m for a new fleet of patrol boats
  • £700m for football pitches, tennis courts and youth facilities
  • £435m to prevent crime, protect communities and help victims in England and Wales
  • £150m for the British Business Bank

 Regarding businesses…

Rise in the National Living Wage announced on Monday
As well as the pay freeze being lifted, Mr Sunak is set to announce a rise in the National Living Wage from £8.91 per hour to £9.50, to come into effect from 1 April next year.

The rise in wages will directly impact businesses to pay their employees appropriately.

Grants worth £1.4bn will be given to ‘internationally mobile’ companies to invest in UK infrastructure
The Government is aiming to increase resilience for any future pandemics, and to the production of electric vehicles in the North-East of England and the Midlands.

They hope to attract high-skilled workers to the UK from San Francisco and Boston in the US as well as Bengaluru in India.

£150m for the British Business Bank
It has been announced that the Government will set aside £150m to encourage the development of regional investors outside of London and the South-East.

Tax changes
A tax increase of 1.25 percentage points on National Insurance and dividend was announced in September and applies from 6 April 2022.

The increase in Corporation tax from 19% to 25% was announced in the last Budget and will be live from April 2023

These are things we already know, and we hope to have a greater understanding of them tomorrow.

If you have any questions regarding your business, or your concerned about how these changes may affect you, our dedicated team at BHP can help provide advice and assistance for you.

To find out more, or to get in touch, contact us here.