Economic growth
- Forecasts from the Office for Budget Responsibility (OBR) suggest economy will grow by 6.5% this year
- Inflation was 3.1% in September and is likely to rise to 4% over the coming months
- It will take until early 2022 for the economy to return to its pre-pandemic size
Business rates, taxes and reliefs
- Next year’s planned increase in the business rates multiplier has been cancelled
- 50% discount on business rates for businesses in the retail, hospitality and leisure sectors, including pubs, music venues, cinemas, restaurants, hotels, theatres, and gyms up to a maximum of £110,000
- Revaluations will be held every three years from 2023
- New investment relief for businesses going green (e.g. installing solar panels)
- Business rates improvement relief - from 2023 every business will be able to make property improvements and, for 12 months, pay no extra business rates.
- The £1m annual investment allowance (AIA) which was due to end in December has been extended to March 2023
- Tax relief on museums and galleries extended to March 2024
Corporation Tax
- The bank surcharge within Corporation Tax will be retained at 3%
- Overall Corporation Tax on banks will increase to 28% (from 27% currently)
Research and Development (R&D) tax relief
- Tax relief for business R&D spending will be limited so that it only applies to activity within the UK
- The definition of R&D has been extended to include cloud computing
Travel
- Planned increase in fuel duty has been cancelled
- New lower rate of Air Passenger Duty from April 2023 for UK domestic flights
- Financial support for English airports will be extended for a further six months
- A new ‘ultra long haul’ Air Passenger Duty for flights over 5,500 miles from April 2023
Alcohol
- Planned rise in duty on spirits, wine, beer and cider cancelled
- The Chancellor also announced a ‘radical simplification of alcohol duties’ based on the premise that stronger drinks (e.g. fortified wines) will pay a higher rate of duty than lower strength drinks (e.g. fruit ciders)
- Sparkling wines will pay the same duty as still wines of equal strength
- A lower rate of duty on draught beer and cider to support pubs
- The cost of a pint will be cut by 3p
- Small brewers relief to include cider makers
Universal Credit
- The taper rate in universal credit will be cut in the next few weeks (but no later than 1 December 2021) from 63p to 55p
- The work allowance will be increased by £500
For further advice on any of the announcments made in the Budget, please contact
your usual Moore adviser.