Autumn Budget 2021: What does it mean for the property market?
October 27th 2021 was an important day for the UK economy, with Rishi Sunak delivering his third Budget since becoming Chancellor.
During his speech, Mr Sunak announced spending increases of £150 billion over three years. The spending includes £7bn for transport projects, plus £6bn to tackle NHS backlogs and almost £2bn to help schools in England catch up following the Covid-19 pandemic.
While much of the Chancellor’s speech in the House of Commons focused on the country’s road to recovery from the coronavirus situation and unfolding challenges following Brexit, Mr Sunak also unveiled broader measures that will impact the workforce, businesses, and the property market.
Summary of Budget headlines
Overall, the 2021 Autumn Budget ran for around an hour. So to save you time, here are some of the headline announcements from the Budget:
£150bn rise in overall spending across three years
£24bn set aside for housing, including £11.5bn for 180,000 affordable homes
The cladding crisis is set to be addressed with a new 4% levy on property developers with profits over £25m
£1.7bn Levelling Up Fund – an influx of investment in local areas that include projects in Aberdeen, Bury, Burnley, Lewes, Clwyd South, Stoke-on-Trent, Ashton under Lyne, Doncaster, South Leicester, Sunderland, and West Leeds
Universal Credit taper rate will be cut by 8% (no later than December 1st 2021)
Business rates retained and reformed
Public sector pay freeze lifted plus National Living Wage to rise to £9.50 an hour
Retail, hospitality, and leisure sectors set to benefit from 50% business rates discount (up to £110,000)
Fuel duty increases cancelled due to rising pump prices
Scottish Government £4.6bn rise in funding
Welsh Government £2.5bn rise in funding
Northern Ireland Executive £1.6bn rise in funding
£2.2bn of additional support for courts, prisons, and probation services
2-year extension of tax relief for museums and galleries
£5.9bn rise in core science funding