October 2021 the Chancellor of the Exchequer, Rishi Sunak, announced the Autumn 2021 Budget
in the House of Commons.
Since the last financial review in March 2021, most of coronavirus restrictions have lifted, as well as most of the pandemic-related economic support. And so it was expected that announced plans would be seen to move the economy beyond the pandemic.
Below are some highlights from The Chancellor’s announcement:
It was announced there would be an investment of over £850 Million to the Department of Digital Culture Media and Sport
(DCMS) spread across the next few years for cultural and heritage infrastructure
, designed to protect national treasures and boost culture in local communities and on high streets.
There would also be an additional £14 Million each year for the next few years to support the UK’s creative industries
. This would include Small and Medium Enterprises (SMEs) allowing them to grow in size and providing personalised support for the nation’s independent film and video game industries
The £800 million Events Reinsurance Scheme
was also confirmed, as well as an extension to the £½ Billion Film & TV Production Restart Scheme
to allow UK events and productions to thrive and plan with certainty.
In the lead up to the Autumn Budget, there had been a lot of announcements relating to the Levelling Up Agenda
, part of which was designed to encourage local authorities to update and improve the delivery of skills and employment support in their areas, and so offer the opportunity to boost local social and economic recoveries.
The Chancellor announced over £2½ Billion
would be given to the UK Shared Prosperity Fund
over the next few years, aimed at helping people into jobs.
The Chancellor also confirmed that the UK Shared Prosperity Fund will aim to match the size of European Union (EU) funding previously received by the UK, and that over £10 Billion would be made available in Overseas Development Assistance, as well as over £450 Million for asylum and refugee support (to be delivered by 2025).
It was announced that over 20 projects around the UK were to benefit from the £150 Million Community Ownership Fund
, designed to help communities protect and manage their local assets and landmarks, such as pubs or Post Offices.
Business and Tax
Even though there was no mention about the Community Renewal Fund
(created to support people and communities in most need across the UK) The Chancellor did confirm the Recovery Loan Scheme will be extended until the end of June 2022
The Chancellor also announced that Business rates are to be reduced by 50%
, and that there would be further tax reliefs for cultural venues, museums and galleries
Health and Social Care
The Chancellor announced that spending for the Department of Health and Social Care
(DHSC) and the core NHS will rise over the next three years, with NHS funding increasing to £162.6 Billion
, said to be a growth of 3.8%.
It was also announced that there will be over £9½ Billion for COVID-19 funding over the next few years
, for the health service to be able to respond to the pandemic, as well as an average of £8.7 Billion each year is to be provided through the Barnett formula
to devolved nations (although it was not made clear as to how much of this will go to health services).
It was announced over £½ Billion will be provided to youth services in England
. This included funding for the Government’s commitment to a Youth Investment Fund
, aimed at delivering up to 300 youth facilities in areas most in need
From the beginning of April 2022, the National Living Wage will be increased from £8.91 to £9.50 an hour
The Chancellor also announced by December 2021
, the amount of Universal Credit (UC) withdrawn for every pound someone earns (also known as the Taper Rate
) will be cut from 63p to 55p
Although this budget and spending review looked forward, aiming to hail a “new age of optimism” and set the path for the Government’s economic policies over the rest of the parliament, it felt overshadowed by concerns about labour demands and supply shortages
, the rise in prices and the cost of living. This again was lightly touched on within the sentiment from the Charity sector.
, the Chair for the Charity Tax Group
(CTG) advised the Government needed to do more to recognise the role of Charity Sector
within community, and that the tax system needs positive change to support the work of charities
, Policy Manager at the National Council for Voluntary Organisations
(NCVO), commented that although they welcomed the commitments made in the budget, the announcements made would not be enough to support charities and communities to recover
from the pandemic and build a stronger society.
, Director of Policy & Campaigns for national charity Action for Children
, reflected that the Government must also choose to prioritise children if they plan to “Build Back Better”
Caron Bradshaw OBE
, Chief Executive of Charity Finance Group
(CFG), suggested the Budget could be seen as “Good, Bad and Ugly” as while there were some welcome statements, other announcements would do little to reduce the fears of the most vulnerable, and those who face the rising costs of living
To view The Chancellor’s official 2021 Budget speech in full
, or for more information
, Visit the Government website
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