The Autumn budget, alongside a spending review, will take place on 27 October 2021. This will be the Chancellor’s third budget and the second for this year. It comes during a time of extraordinary economic disruption and increasing doubts over interest rates and inflation.
There will be some key questions that the Chancellor will have to face, what does the recovery look like? Has inflation come back? What changes will there be in taxes?
Rishi Sunak has summarised his spending plans and has said that he “will set out how we will continue to invest in public services and drive growth while keeping the public finances on a sustainable path”.
Core day-to-day departmental spending will follow the path set out at spring Budget 2021, with the addition of the net revenue raised by the new Health and Social Care Levy and the increase to dividend tax rates announced today. The Government will make available around an additional £12 billion per year for health and social care on average over the next three years.
This additional funding for health and social care allows the Government to announce an SR21 RDEL settlement for NHS England and Improvement rising to £160 billion by 2024-25
In total, day-to-day spending will increase to £440 billion by 2024-25, increasing by nearly £100 billion a year in cash terms over the Parliament.
We will also deliver a step-change in capital investment, as set out at Budget 2021. We will invest over £600 billion over five years, the highest sustained level of public sector net investment as a proportion of GDP since the late 1970s.
Overall, our record and our plans will see total core departmental spending (for day-to-day spending and investment) grow in real terms at nearly 4% per year on average (nearly 6% in cash terms) over this Parliament – a £140 billion cash increase and the largest real-terms increase in overall departmental spending for any Parliament this century.
The Office for Budget Responsibility will prepare an economic and fiscal forecast, this review takes place every three years.
Thompson Jenner will be covering the announcements during an online budget briefing on 28th October 2021 at 2pm.