As it happened: Rishi unveils £150bn spending but warns of ‘challenging months ahead’
27 October 2021, 08:33 | Updated: 28 October 2021, 05:12
The Chancellor is announcing his Autumn 2021 Budget in a statement to MPs where he warned of "challenging months ahead," focusing on economic recovery post Covid-19.
Ahead of his speech, Chancellor Rishi Sunak warned "we have challenging months ahead."
Sir Keir Starmer is not present in the chamber today as he has tested positive for Covid-19.
The Chancellor announced:
- The ‘post-Covid’ Budget will pave the way for the "Prime Minister's economy of higher wages, higher skills, and rising productivity".
- OBR scales down its assumption of the scarring effect of Covid-19 on the economy from 3% to 2%
- OBR downgrades unemployment forecast from 12% down to 5.2%
- The minimum wage will increase to to £9.50 an hour next year, up from the current £8.91.
- The Universal Credit taper rate will be cut by 8% from no later than December 1, bringing it down from 63% to 55%.
- Alcohol duty is being "radically" simplified by introducing a system designed around the principle of "the stronger the drink, the higher the rate".
- A "draught relief" will apply a lower rate of duty on draught beer and cider, bringing the price of a pint down by 3p.
- A planned rise in fuel duty will be cancelled because of pump prices being at their highest level in eight years.
Follow build-up and the announcements live in our blog below
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