2021 Budget Overview

Earlier this afternoon, the Chancellor of the Exchequer, Rishi Sunak delivered his 2021 budget and I felt it would be useful to provide you with a brief outline of this, particularly in light of the ongoing Coronavirus pandemic and its effect on our economy.

Earlier this afternoon, the Chancellor of the Exchequer, Rishi Sunak delivered his 2021 budget and I felt it would be useful to provide you with a brief outline of this, particularly in light of the ongoing Coronavirus pandemic and its effect on our economy.

The OBR (Office for Budget Responsibility) predicts that our economy will return to ‘pre-covid’ levels by the middle of 2022, six months earlier than previously projected.

Economic growth is forecast at 4% for 2021, 7.3% by 2022 and then 1.7% up to 2025 which is pleasing to see.

I have briefly summarised the key areas and announcements made:

Whilst all of the above support is encouraging to see from both an economic and welfare perspective, it has come at a cost with the UK’s borrowing at it’s highest level outside of war time.

The Chancellor has announced measures to reduce the level of borrowing over the next 5 years:

The Chancellor also confirmed that there will be no rises in Income Tax, National Insurance or VAT rates for the current tax year.

With today’s announcements, the governments cautious road map to ‘normal life’ and the successful vaccine rollout, we remain optimistic for 2021, however we are aware that we continue to live in worrying times.

Please do not hesitate to contact us if you have any questions or concerns around any of today’s announcements or any other matters.

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