Canada Markets close in 3 hrs 38 mins
  • S&P/TSX

    20,823.30
    +358.70 (+1.75%)
     
  • S&P 500

    4,587.30
    +74.26 (+1.65%)
     
  • DOW

    34,686.12
    +664.08 (+1.95%)
     
  • CAD/USD

    0.7809
    +0.0003 (+0.0336%)
     
  • CRUDE OIL

    66.79
    +1.22 (+1.86%)
     
  • BTC-CAD

    72,441.17
    -3,010.16 (-3.99%)
     
  • CMC Crypto 200

    1,438.90
    +0.02 (+0.00%)
     
  • GOLD FUTURES

    1,766.00
    -18.30 (-1.03%)
     
  • RUSSELL 2000

    2,190.98
    +43.56 (+2.03%)
     
  • 10-Yr Bond

    1.4630
    +0.0290 (+2.02%)
     
  • NASDAQ

    15,409.07
    +155.02 (+1.02%)
     
  • VOLATILITY

    28.11
    -3.01 (-9.67%)
     
  • FTSE

    7,129.21
    -39.47 (-0.55%)
     
  • NIKKEI 225

    27,753.37
    -182.25 (-0.65%)
     
  • CAD/EUR

    0.6907
    +0.0014 (+0.20%)
     

At a glance: Key points from Budget 2021

·3 min read

Here are the main points from Chancellor Rishi Sunak’s Budget:

– The Budget is focused on the “post-Covid” era, according to the Chancellor, and will pave the way for the “Prime Minister’s economy of higher wages, higher skills, and rising productivity”.

– Independent forecaster the Office for Budget Responsibility (OBR) has scaled down its assumption of the scarring effect of Covid-19 on the economy from 3% to 2%, Mr Sunak told the Commons.

– The OBR has downgraded its unemployment forecast due to the coronavirus pandemic from 12% down to 5.2%, the Chancellor told MPs.

– The minimum wage will increase to to £9.50 an hour next year, up from the current £8.91.

– The Universal Credit taper rate will be cut by 8% from no later than December 1, bringing it down from 63% to 55%.

– Alcohol duty is being “radically” simplified by introducing a system designed around the principle of “the stronger the drink, the higher the rate”.

(PA Graphics)
(PA Graphics)

– A “draught relief” will apply a lower rate of duty on draught beer and cider, cutting the tax by 5% on drinks served from draught containers over 40 litres and bringing the price of a pint down by 3p.

– A planned rise in fuel duty will be cancelled because of pump prices being at their highest level in eight years.

– Flights between airports in England, Scotland, Wales and Northern Ireland will be subject to a new lower rate of Air Passenger Duty from April 2023.

– Every Whitehall department will receive a “real terms rise in overall spending” as part of the Spending Review, the Chancellor said, amounting to £150 billion over this Parliament.

– Mr Sunak confirmed a levy will be placed on property developers with profits over £25 million at a rate of 4% to help create a £5 billion fund to remove unsafe cladding.

Budget 2021
Rishi Sunak said every Whitehall department will receive a “real terms rise in overall spending” (Jacob King/PA)

– Devolved administrations will be given the “largest block grants” since 1998, with an increase to Scottish Government funding in each year by an average of £4.6 billion, £2.5 billion for the Welsh Government, and £1.6 billion for the Northern Ireland Executive.

– An extra £2.2 billion has been announced for courts, prisons and probation services, including £500 million to reduce the courts backlogs.

– £300 million will go towards “A Start for Life” parenting programmes, with an extra £170 million by 2024/25 going into paying for childcare.

– The Chancellor said core science funding will rise to £5.9 billion a year by 2024-25, a cash increase of 37%.

– A new 50% business rates discount will apply in the retail, hospitality, and leisure sectors, with eligible businesses able to claim a discount on their bills of up to a maximum of £110,000.

– Ahead of the Budget statement, £7 billion transport funding was announced for areas including Greater Manchester, the West Midlands and South Yorkshire for projects ranging from tram improvements to introducing London-style improvements in infrastructure, but only £1.5 billion of this was believed to be “new” funding.

– A £6 billion package of funding will help tackle NHS backlogs and invest in technology was also trailed ahead of the statement.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting