27 October 2021

Rishi Sunak has delivered his 3rd Budget speech, which contained a wide range of favourable announcements for both businesses and individuals.  The 50% reduction in business rates for the Retail, Hospitality and Leisure sector was particularly welcome, even if it has a shelf-life of only one year.

The report from the OBR (Office for Budget Responsibility) has painted a positive picture of a rebounding UK economy and the Chancellor has clearly taken full advantage in using the extra revenues to fund a relatively large increase in public spending.

The much-feared tax increases that had been trawled in the media (such as Capital Gains Tax rates being increased from 20% to 45%) did not materialise and furthermore the Chancellor even went on to say that we can expect a reduction in taxes in his future Budgets.

Tax has always been driven by politics, but even more so now.  The latest sleight of hand appears to be to keep the “bad news” outside of a Budget speech, such as the 1.25% increase in NIC and dividends tax that was announced only last month – perhaps this is why Rishi Sunak confidently announced that he will reduce taxes in his future Budgets!

If you would like to read the full summary in PDF format, please click here.

If you have any queries on today’s Budget (although tax changes were very thin on the ground!) please contact our tax team on 01228 530913 or 01768 864466.