“Employment is up. Investment is growing. Public services are improving. The public finances are stabilising. And wages are rising.”’ – Chancellor Rishi Sunak, Autumn Budget 2021

Delivering his third Budget to the House of Commons, the Chancellor pledged to create “an economy fit for a new age of optimism” in a positive yet uneventful Budget.

Over the last 18 months, the focus of Budget announcements has been to address the damage caused by the COVID pandemic. But, as we emerge from the various lockdowns, this Budget saw a departure from crisis management to a renewed emphasis on longer-term goals.

Early reference was made to the forces stimulating inflation, but this was quickly tempered with estimates that the UK’s economic recovery will be shorter than previously expected, with the UK economy now forecast to return to pre-COVID levels by early 2022. The Chancellor then went further, highlighting increased economic growth, falling national debt and a “stronger economy for the British People”.

The impact of the Budget on personal finance was limited, with the Chancellor resisting the urge to tinker with inheritance or pension taxation. There were no significant changes to the structure or limits of pensions, but the Government will look to simplify tax relief for low earners in future years.

Staying abreast of personal taxation changes remains essential and it is important to consistently utilise tax-efficient investment wrappers such as ISAs, pensions and investment bonds to maximise net investment returns whatever the economic landscape.

Please click here for a full summary of the Budget covering all announcements and the allowances for the year ahead.

Naturally, all Budget changes that affect you personally will be picked up at our regular reviews, but should you have any questions in the meantime, then please do not hesitate to contact your adviser.

 

The contents of the article have been prepared solely for information purposes. The article contains information on financial products and services and such information is designed for and addressed solely to individuals seeking generic industry information.