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Komal Kaur

BUDGET 2021: The Plan

Yesterday, 27th October, the Chancellor of the Exchequer, Rishi Sunak, announced the UK's second budget plan for 2021, including changes that will directly affect the businesses.

Read below to see what was said.

Employers: the minimum wage is increasing from 1 April 2022

The National Living Wage for age 23 and over will increase from £8.91 to £9.50 an hour. The National Minimum Wage for workers under the age of 22 is also increasing.


Retail, hospitality & leisure: 50% business rates discount

A new 50% business rates discount will be available for organisations in the retail, hospitality and leisure sectors. Eligible firms will be able to claim a discount on their business rates bills up to £110,000.


Business premises: “fairer” business rates

From 2023, reevaluations will be carried out every 3 years to make the business rates system "fairer and timelier". Businesses looking to implement green infrastructure will also benefit.


Fuel duty rate rise is cancelled

The Chancellor confirmed that fuel duty will be frozen at 57.95p per litre for the 12th year in a row.

Hospitality & beverages: changes to alcohol duty

The Chancellor announced plans to introduce a system based around the concept of “the stronger the drink, the higher the rate” from February 2023. This means a new "draught relief" on draught beer and cider, reducing duty by 5%, and planned duty increases on spirits, wine, cider and beer will be cancelled.


Theatres & galleries: tax relief

Tax relief worth £250m will be made available to theatres, galleries and other cultural organisations from April 2023 to help them recover from the pandemic.


Any questions, let us know.

The Accountancy Franchise & Pro Tax Plus Accountants

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