Budget and Spending Review October 2021 - What you need to know
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Published 27 October 2021
1. Strong and innovative
The new Health and Social Care Levy, along with an increase to the
rates of dividend tax, will raise around £13 billion per year for
spending on health and social care across the UK. This enables
significant further funding for the NHS, for the government’s
reforms to social care, public health and prevention programmes, and
investment in training the workforce of the future.
£2.3 billion over the next three years will transform
diagnostic services with at least 100 community diagnostic centres
across England – helping millions of patients access earlier
diagnostic tests closer to home.
£2.1 billion over the next three years to support innovative
use of digital technology so hospitals and other care organisations are
as connected and efficient as possible, freeing up valuable NHS staff
time and ensuring the best care for patients wherever they are.
£1.5 billion over the next three years for new surgical hubs,
increased bed capacity and equipment to help elective services recover,
including surgeries and other medical procedures.
Confirms an additional £4.7 billion by 2024-25 for the core
schools budget in England, over and above the SR19 settlement for
schools in 2022-23, as well as £2.6 billion of capital funding
for new school places for children with special educational needs and
disabilities, and £1.8 billion of additional money for education
recovery – in addition to the £1.4 billion announced in
Confirms investment of £11.5 billion in the Affordable Homes
Programme in England from 2021-26 to help build up to 180,000 new
affordable homes – with 65% of funding for homes outside London.
An additional £1.9 billion resource funding for
England’s criminal justice system to manage the increased number
of offenders being brought to justice and start to reduce backlogs in
criminal courts caused by COVID-19 and improve waiting times.
Increasing annual funding for Ministry of Justice’s victims
support services to over £185 million a year by 2024/25.
£355 million to keep people safe, cut crime and help victims of
sexual abuse in England and Wales, including £50 million towards
the Safer Streets Fund helping it continue its vital role in working
with police forces in local crime-prevention.
2. Supporting people:
Permanently cutting the Universal Credit taper rate by 8% from 63p
to 55p, ensuring more money in people’s pockets.
From 1st April 2022 the National Living Wage will increase by 6.6%
to £9.50 an hour. Young people and apprentices will also see pay
increases as the National Minimum Wage rates will also increase next
April. Alcohol duties will be frozen across the board for the third
year running saving consumers £3 billion.
Additional investment of £170 million in 2024-25 to increase
the hourly rate to be paid to early years providers to deliver the
government’s free childcare hours.
New investment of £302 million to fund new programmes to
support parents, provide bespoke breast feeding services and
parent-infant mental support, and funding to rollout Family Hubs across
£639 million resource funding per annum by 2024-25 as part of
the government’s commitment to end rough sleeping in England, an
85% cash increase compared to 2019-20. This brings total funding to
£1.9 billion resource and £109 million capital investment
over the SR21 period, and builds on the government’s achievement
of having reduced rough sleeping numbers by a third between 2019 and
Fuel duty rates will be frozen UK-wide for the 12th consecutive year.
An increase in adult skills funding by 29% in real terms compared to
2019-20 – this funding will go towards a range of policies in
England such as continuing the Prime Minister’s Lifetime Skills
Guarantee to offer free Level 3 courses for adults, and quadruple the
current scale of Skills Bootcamps
£560 million of new funding through the UK Shared Prosperity
Fund for the new UK-wide Multiply programme which will support up to
half a million adults to improve their numeracy.
New investment of £1.6 billion for 16–19-year
olds’ education in England. This will maintain funding in the
face of demographic growth and provide additional hours for learners
who take T Levels.
Increases apprenticeship funding in England to £2.7 billion in
2024-25 and continue to invest over £900 million for each year of
this Spending Review across Great Britain on work coaches to ensure
Universal Credit claimants receive the best support to find employment.
Confirms funding for the Restart scheme in England and Wales, to
continue providing intensive and tailored support to long-term
unemployed people to help them find work
£90 million to extend the Job Entry Targeted Support Scheme to
the end of September 2022 - helping those unemployed for between three
and twelve months across Great Britain find work.
3. Levelling Up:
Over £2.6 billion for the UK Shared Prosperity Fund over the
Spending Review, focused on helping people into jobs and get on in life
across the UK.
£560 million new funding for youth services in England over
the next three years, enough to fund 300 youth clubs.
£205 million new funding to build or transform up to 8,000
state-of-the-art community football pitches across the UK.
Allocation of the first round of the UK-wide Levelling Up Fund with
£1.7 billion of local investment in local areas, ranging from
redeveloping Inverness Castle to upgrading the ferry to the Isles of
Scilly, and from a bowling green in Portrush to a science lab in
Allocation of the first 21 projects to benefit from the £150
million Community Ownership Fund, which will help communities across
the UK protect and manage their most treasured assets, from building
the John Jenkins Stadium in Portsmouth to acquiring the Old Town Hall
as part of a new museum development in Whithorn in Scotland, supporting
the Ty’n Llan pub in Llandwrog in Wales, and developing a new
community digital hub in Cushendall in Northern Ireland.
£2.6bn between 2020-2025 for a new, long-term pipeline of over
50 local road upgrades in England and over £5 billion for local
roads maintenance, enough to fill millions of potholes a year.
£5.7 billion to eight English city regions over five years to
transform local transport networks through London-style integrated
£3 billion investment over this Parliament to level up bus
services in England, including a new dedicated £1.2 billion new
funding for London-style bus transformation deals to improve
infrastructure, fares and services. #
It also confirms £355 new funding for zero emission buses, and
an allocation of £70 million Zero Emission Bus funding to deliver
buses and related infrastructure in Warrington, Leicester, Milton
Keynes, Kent, and Cambridgeshire & Peterborough.
£850m to protect museums, galleries, libraries, and local
culture in England.
4. Investing in
growth and supporting businesses:
Increasing public investment in UK R&D to £20 billion by
2024-25, representing an increase of around a quarter in real terms.
Plans to reform R&D tax reliefs to support modern research
Doubling the available scholarships for AI and Data Science
Master’s conversion courses with a £23 million investment
for under-represented groups.
Supporting private R&D investment by increasing funding for core
Innovate UK programmes, reaching circa £1 billion per year by
2024-25, over £300 million more per annum than in 2021-22.
Funding for the UK to become the first country to launch a rocket
into orbit from Europe in 2022, with the aim of becoming a leader in
commercial small-satellite launch, as set out in the National Space
An extension of the temporary £1 million level of the Annual
Investment Allowance to March 2023, providing more upfront support to
help businesses across the UK to invest and grow.
To reduce the burden of business rates and support investment in
England, the government is freezing the business rates multiplier for a
further year, a tax cut worth £4.6 billion over five years.
New investment incentives in England totalling almost £750
million, including tax relief for eligible green investments and a new
‘business rates improvement relief’.
A new 50% business rates discount for businesses in the retail,
hospitality, and leisure sectors in England.
Overall reducing the burden of business rates in England by £7
billion over the next five years, alongside a commitment to modernise
the business rates system with more frequent revaluations every three
Temporarily increasing the headline rates of tax relief for
theatres, museums, orchestras and galleries across the UK from 27
October 2021 to 31 March 2024, increasing the relief organisations can
claim as they invest in new productions and exhibitions.
£11 million funding to back the UK and Ireland bid to host the
2030 men’s Football World Cup.
5. Building back greener:
£6.1 billion to back the Transport Decarbonisation Plan,
boosting the number of zero emission vehicles, helping to develop
greener planes and ships, and encouraging more trips by bus, bicycle
Up to £1.7 billion of direct government funding to enable a
large-scale nuclear project to reach a final investment decision this
parliament, subject to value for money and approvals. The government is
in active negotiations with EDF over the Sizewell C project.
£380 million for our world-leading offshore wind sector,
boosting jobs and investment across the UK including offshore wind
ports in Teesside and the Humber
Confirms funding for the £1 billion Net Zero Innovation
Portfolio, as announced in the Ten Point Plan, which is accelerating
near-to-market low-carbon technology innovations and the aligned
£385 million Advanced Nuclear Fund which is developing the next
generation of small and advanced modular reactor technologies.
£3.9 billion to decarbonise buildings, including £1.8
billion to support tens of thousands of low-income households to make
the transition to net zero while reducing their energy bills.
A further £625 million for the Nature for Climate Fund,
ensuring total spend of more than £750 million by 2024-25 will
help meet our commitment to plant at least 7,500 hectares of trees
every year in England by 2025 and restore 35,000 hectares of peatland
during this Parliament.
More than £250 million to protect and restore nature in
England in support of the UK’s world-leading target to halt
biodiversity decline by 2030.
Advancing Global Britain & seizing the opportunities of Brexit:
Modernising the UK’s Tonnage Tax regime to ensure that our
shipping industry remains highly competitive in the global market.
The first Freeport tax sites will be in Humber, Teesside and Thames,
and those Freeports will be able to begin initial operations from
A new UK Global Talent Network, to work with businesses and research
institutes to identify and attract the best global talent in key
science and tech sectors.
The new £1.4 billion Global Britain Investment Fund will
ensure that economic opportunities are spread more evenly across the UK
by supporting investment in the UK’s life sciences, offshore wind
and automotive manufacturing sectors.
£11 billion of Overseas Development Assistance (ODA) including
doubling our international climate finance to £11.6bn between
2021-22 and 2025-26 and £430 million to the Global Partnership
for Education to help to educate young people, particularly for girls
(our largest ever contribution).
Funding for the UK’s commitment to welcome up to 20,000 Afghan
citizens over the coming years, including £20,520 per person for
Local Authorities who settle Afghan families, with an additional
£17 million available to top-up housing costs and an extra
£20 million pot of flexible funding.
An additional £458 million by 2024-25 for asylum and refugee
support, helping protect vulnerable people in our asylum system.
£703 million over the next three years to improve the safety,
security and efficiency of the UK border.
Confirming eligibility criteria for the new Scale-Up Visa, to help
make it quicker and easier for fast-growing businesses to bring in
A 50% cut in Air Passenger Duty for flights between airports in
England, Scotland, Wales and Northern Ireland – which is set to
benefit around nine million passengers in 2023-24 and will be delivered
via a new domestic band.
A new rate of Air Passenger Duty of £91 on flights of 5,500
miles or more. These reforms apply across the UK except for the direct
long-haul rates for Northern Ireland which are devolved.
The alcohol duty system will be overhauled to make it fairer and
more straightforward, with drinks taxed in proportion to their alcohol
content and duty rules simplified.
7. Delivering for all parts
of the UK:
Announcing the first 21 places across the UK to benefit from the
£150 million Community Ownership Fund, which will invest at least
£12.3 million in Scotland, £7.1 million in Wales, and
£4.3 million in Northern Ireland over at least eight bidding
rounds. In this round, nine projects worth £1.8 million will
benefit from the Fund in Scotland, Wales and Northern Ireland ,
including supporting the community to save a town hall in New Galloway,
a pub in Llandwrog, and to create a digital hub in Cushendall.
Accelerated funding for the Cardiff City Region Deal to fast-track
support, including for advanced manufacturing capability in the region.
£172 million from the Levelling Up Fund for 8 projects in
Scotland including the redevelopment of Inverness Castle, renovation of
the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen
The UK Shared Prosperity Fund will at a minimum match the size of EU
Funds in all nations, each year. The Government will also match current
EU funding levels in Cornwall.
£120 million for a new Future Nuclear Enabling Fund to support
nuclear projects across the UK, with a number of potential sites
including the Wylfa in Anglesey, North Wales.
£121 million from the Levelling Up Fund for 10 projects in
Wales including to revitalise the Pontcysyllte Aqueduct and Canal World
Heritage Site and redevelopment of the Theatr Brycheiniog Arts Centre
A Veterans Commissioner for Wales, who will work to improve the
lives and opportunities of the Welsh veterans’ community,
recognising their contribution to UK Armed Forces.
The establishment of new trade and investment hubs in Cardiff and
Belfast and the expansion of the existing trade and investment hub in
Edinburgh, ensuring the benefits of the UK’s global trade policy
are channelled across the UK.
A further £8 million from Project Gigabit to deliver full
fibre broadband to 3,600 premises in Scotland including Aberdeenshire,
Angus, Highland, Moray and Perth and Kinross.
£49 million from the Levelling Up Fund for 11 projects across
Northern Ireland including an Electric Vehicle charging network across
the country, the redevelopment of a derelict Ministry of Defence site
in Derry/Londonderry into an urban community farm, and improved sports
facilities in Portrush.
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Article Published/Sorted/Amended on Scopulus 2021-10-27 16:08:58 in Tax Articles