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  • Budget 2021

Image source, Reuters

Chancellor Rishi Sunak has unveiled the contents of his Budget in the House of Commons.

He is setting out the government's tax and spending plans for the year ahead.

Here is a summary of the main points.

  • LIVE: Sunak unveils spending plans in Budget
  • A simple guide to Budget 2021
  • Economy set to hit pre-Covid level at end of year

State of the economy and public financesImage source, Getty Images

  • Inflation in September was 3.1% and is likely to rise further – to average 4% over next year, according to estimates
  • UK economy forecast to return to pre-Covid levels by 2022
  • Annual growth set to rebound by 6.5% this year, followed by 6% in 2022
  • Unemployment expected to peak at 5.2% next year, lower than 11.9% previously predicted
  • Wages have grown in real terms by 3.4% since February 2020
  • Borrowing as a percentage of GDP is forecast to fall from 7.9% this year to 3.3% next year
  • Borrowing as a percentage of GDP will then fall in the following four years to 1.5%
  • The government is scheduled to reinstate its commitment to spend 0.7% of GDP on foreign aid by 2024-25

Taxation and spendingImage source, EPA

  • Universal Credit taper rate will be cut by 8% no later than 1 December, bringing it down from 63% to 55%
  • Business rates will be retained and reformed
  • Planned rise in fuel duty will be cancelled amid the highest pump prices in eight years
  • £24bn is being earmarked for housing: £11.5bn for up to 180,000 affordable homes, with brownfield sites targeted for development
  • Every Whitehall department will receive a real terms rise in overall spending, totalling £150bn over the course of this Parliament
  • A 4% levy will be placed on property developers with profits over £25m rate to help create a £5bn fund to remove unsafe cladding
  • Funding will rise by an average of £4.6bn for the the Scottish Government, £2.5bn for the Welsh Government, and £1.6bn for the Northern Ireland Executive
  • There will be an extra £2.2bn for courts, prisons and probation services
  • Tax relief for museums and galleries will be extended for two years, to March 2024
  • Core science funding will rise to £5.9bn a year by 2024-25

Children and educationImage source, PA Media

  • Schools to get an extra £4.7bn by 2024-25
  • There will be nearly £2bn of new funding to help schools and colleges to recover from the pandemic
  • Schools funding to return to 2010 levels in real terms – an equivalent per pupil cash increase of more than £1,500
  • £300m will be spent on a "Start for Life" parenting programmes, with an additional £170m by 2024-25 promised for childcare
  • A UK-wide numeracy programme will be set-up to help improve basic maths skills among adults

Air travelImage source, PA Media

  • Flights between airports in the UK nations will be subject to a new lower rate of Air Passenger Duty from April 2023
  • Financial support for English airports to be extended for a further six months
  • A new ultra long haul band in Air Passenger Duty for flights of over 5,500 miles will be introduced from April 2023

AlcoholImage source, Getty Images

  • A planned rise in the duty on spirits, wine, cider and beer will be cancelled
  • Simplification of alcohol duties in more than over 140 years will see the number of rates drop from 15 to six
  • Stronger red wines, fortified wines, and high-strength ciders will see a small increase in their rates
  • The rates on many lower alcohol drinks including rose wine, fruit ciders, liqueurs, lower strength beers and wines will fall
  • All sparkling wines will now pay the same duty as still wines of equivalent strength
  • A new, lower rate of duty on draught beer and cider will cut the rates by 5%