How To Live On A Budget Blog
Chancellor Rishi Sunak has delivered his crucial Autumn Budget later today - his first since the Government lifted coronavirus restrictions during the summer.
Mr Sunak had already said public finances "must be put back on a sustainable footing" - as the Government grapples with the deficit and highest figure of government borrowing since the end of the Second World War. A flurry of pledges had already been announced by the Treasury.
In the House of Commons today, the Chancellor made many more announcements - including reforms to business rates, "radically" simplifying alcohol duties, and imposing a levy on property developers to help pay for the costs of the cladding crisis.
READ MORE: The full list of Budget announcements that were made before Budget day
The planned rise in fuel duty will be cancelled because of pump prices being at their highest level in eight years, Mr Sunak said.
Meanwhile 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.
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And the Chancellor announced that the Universal Credit taper rate will be cut by 8% from no later than December 1, bringing it down from 63% to 55%.
Follow below for our live coverage of Autumn Budget day - with all of the business reaction from across the UK:
Andrew Arthur
Catch up on all of the highlights from today's Autumn Budget
Chancellor Rishi Sunak has revealed a host of pledges in his Autumn Budget and Spending Review in the House of Commons today.
You can catch up on all of the headline announcements Mr Sunak made in his speech in our BusinessLive recap here.
You can also read business reaction and analysis from across the UK from Yorkshire and the Humber, right down to the South West of England.
There is also a look at what the Chancellor has announced for the UK's devolved administrations, including Wales.
Andrew Arthur
Business West says West Country broadly 'loses out' in Budget
Phil Smith, chief executive of Bristol-based chamber of commerce Business West, said the Autumn Budget did not provide the West of England with the support the region needs from central Government.
Mr Smith said:
"Avoiding a spending squeeze was important given the fragility of the overall economy and individual firms.
"However, businesses will have watched the budget with a less resolved question over whether the government will be doing enough to sustain the economy and tackle the significant challenges that businesses still face.
"Many businesses are in a tough period, with Covid recovery needing to be nurtured and companies looking to 'make up for lost time' in recouping lost income in the months and years ahead.
"They also face strong headwinds in the face of skills shortages and rising costs, from supply chain and labour market inflation and additional business tax burdens from National Insurance and corporation tax.
"The West Country also continued to broadly lose out from the Chancellor's largesse. With a very long list of individual projects and schemes announced, dominated by northern constituencies and the devolved nations of Scotland, Northern Ireland and Wales.
"We are still not getting cut through in central government for the support our region needs."
Andrew Arthur
London chamber says levelling-up can't be done by 'levelling down' capital
Richard Burge, chief executive of the London Chamber of Commerce and Industry, said:
"Measures enabling foreign companies to relocate to the UK with much greater ease and investment to attract skilled workers to the UK will be a boost for the economy.
"However, it is disappointing to see costs increasing for long-haul travel, which is at odds with the Government's 'Global Britain' ambitions and could inhibit London's role as a leading global city.
"Whilst the Chancellor's announcements relating to business rates are welcome, particularly for those in the retail, hospitality and leisure sectors, businesses will be disappointed that the Budget did not include more extensive reforms to address the outdated system of rates based on the value of property.
"The Budget's overwhelming focus on supporting 'cities outside of London' is also concerning, with the capital set to receive less than 2% of the first round of national funding for levelling-up projects despite having received the lion's share of economic pain from the COVID-19 pandemic.
"There is of course a need to level-up the rest of the UK but this cannot be done by simply levelling down London, an outcome that would injure the whole of the national economy."
Andrew Arthur
Night Time Industry Association welcomes hospitality business rates and alcohol duty measures
Responding to the Chancellor's speech, Michael Kill, chief executive of the Night Time Industries Association, said:
"Today's Budget had some important announcements that will enable the hospitality sector to continue to drive the economic recovery.
"The announcements on business rates relief for hospitality, the simplification of Alcohol Duties, and the cut in duty for draught beverages will be welcomed by thousands of businesses in the night time economy.
"This sector was devastated by the pandemic, with many businesses sadly not making it through, but the resilience we have shown to this point has been incredible.
"Despite this, businesses are still suffering from increased operating costs and with the potential for interest rates to go up being very problematic, as so many having taken on debt during the pandemic.
"To these businesses, the announcement's today will be important in allowing them to continue to support the wider recovery and ensuring a limit to the extent of increased prices being felt by consumers.
"Of course the improved forecasts for growth announced by the Chancellor today are good news, and the reopening of the night time economy has been a key part of this better-than-expected bounce back.
"We were disappointed that the Chancellor chose not to extend the 12.5% rate of VAT on hospitality – this is a missed opportunity, and it will prevent those forecasts from improving further still."
Andrew Arthur
British Property Federation: business rates measures give high streets 'temporary relief'
The British Property Federation, a not-for-profit membership organisation representing companies involved in property ownership and investment, has given its reaction to Mr Sunak's plans for business rates relief.
Melanie Leech, British Property Federation chief executive, commented:
"The package of measures the Chancellor has announced on business rates relief will bring some welcome temporary relief to our high streets but demonstrate how badly further, fundamental reform is needed.
"While a move to three-year revaluations is welcome, we continue to urgently call for annual revaluations. Businesses need to see long-term reductions in the rates they pay rather than short term fixes. The current practice of downwards transitions needs to end and would give high streets an £8.5bn boost and enable them to forward plan and protect jobs.
"We are pleased that the Chancellor has also responded directly to the BPF's call for business rates relief to encourage building improvement and to support the transition to net zero. This will give a significant boost to investment in revitalised, more sustainable town centres."
Andrew Arthur
Banking sector welcomes Chancellor's 'compelling vision' for a stronger economy
UK Finance, the trade association for the UK banking and financial services sector, described the Budget as a "compelling vision to deliver a stronger economy."
David Postings, chief executive of UK Finance, said:
"The Chancellor has set out a compelling vision to deliver a stronger economy. As the UK recovers from the impact of coronavirus, the banking and finance industry will continue to support people and businesses to rebuild.
"We will continue to work closely with the government to maintain a strong banking and finance sector that delivers jobs and investment, and drives growth across the nations and regions."
Andrew Arthur
Recap on all the main announcements
With national and regional business reaction to Chancellor Rishi Sunak's Autumn Budget and Spending Review continuing to come in, click here for our recap of all the main announcements from his speech.
Tamlyn Jones
'Slashing of business rates will be cheered'
Henrietta Brealey, chief executive of Greater Birmingham Chambers of Commerce, said that a stronger-than-expected economic recovery from the pandemic meant the Chancellor was able to introduce a number of favourable tax cuts.
"For a number of years, the chamber has called for reform of the outdated business rates system and it was pleasing to see the Chancellor announce more frequent valuations, incentives to encourage green investment and a freezing of the multiplier.
"While we will need to study the finer details of the scheme, it was also good to see that business rates would be slashed for those operating in the hospitality, retail and leisure sectors - a development that will no doubt be cheered by those businesses that suffered huge losses as a result on enforced closures during the crisis.
"The extension of the Airport and Ground Operations Support Scheme is also a sensible step and will offer a timely boost to anchor institutions such as Birmingham Airport that have been rocked to their core over the last 18 months.
"The freezing of alcohol duty will also help those in the hospitality sector, however, we would urge the Government to go further and maintain an open mind on keeping lower levels of VAT in place for the long term given the positive effect it's had on driving consumer demand.
"Much of the Chancellor's strategy has been predicated on a sustained economic recovery and, as Mr Sunak admitted himself, the spectre of higher covid case rates and a sharp rise in inflation could still cause huge problems for businesses during the winter."
Andrew Arthur
West of England Metro Mayor: 'Optimism won't pay the bills'
West of England Metro Mayor Dan Norris welcome the Chanellor's formal announcement of half a billion pounds in investment for local transport in the region, which he said was "the biggest per head" of any city region in the country.
Mr Norris was less complimentary on other parts of the Autumn Budget, saying:
"The Chancellor declared an 'Age of optimism' but I was hoping for a good plan. Sadly optimism won't pay the sky high fuel bills, fill up the gaps on the supermarket shelves, or sort out the chronic shortages of HGV drivers.
"We need a plan to fix the cost of living crisis, rebuild the public services the Tories cut to the bone, and answers on how, as a nation, we tackle the huge challenges of the day like climate change.
"I also worry this will all be for naught if Covid is not controlled."
Andrew Arthur
Aerospace and defence sectors welcome R&D spending commitments
ADS Group, the trade organisation that represents the aerospace, defence, security and space industries in the UK, welcomed the Chancellor's spending pledges for research and development.
ADS chief executive Kevin Cravensaid:
"Today's welcome commitment to extend Aerospace Technology Institute funding to 2031 recognises the need for long-term partnership to achieve our net zero goals and make the UK a global leader in green aerospace technology.
"Support for cutting edge aerospace innovation will sustain jobs, level up opportunities in every part of the country, and help to secure billions of pounds in industry investment.
"Our members will be looking for early clarity on an ATI funding level that matches industry ambitions here in the UK to deliver net zero aviation."
Andrew Arthur
British Business Bank reacts to Chancellor's speech
The Chanellor announced a raft of measures in his speech to support small businesses which will be delivered by the state-owned British Business Bank.
Responding to the announcements, Catherine Lewis La Torre, chief executive of the British Business Bank, said:
"The package the Chancellor has announced today enables us to build on our range of programmes to support sustainable economic growth by increasing the supply, diversity and demand for finance for UK smaller businesses.
"We welcome the provision of this funding to deliver our expanded programme of activity, enabling us to make over £4.9bn of financial commitments and loans.
"This includes £1.6bn to provide investment funds for the Devolved Nations, and the North, Midlands, and South West of England, £150m to invest alongside business angels across the UK, and resources to provide 33,000 Start-Up Loans over the next three years."
"A six-month extension to the Recovery Loan Scheme will also provide valuable support for smaller businesses as they look beyond the pandemic towards the opportunities available to them in the recovery."
Tamlyn Jones
'Seems a positive Budget' - Birmingham chamber chief
Tamlyn Jones
Thumbs up from Tax Payers' Alliance
John O'Connell, chief executive of the TaxPayers' Alliance, said there were some "concrete wins" but warned these could not hide the massive spending pledges eating up fiscal headroom.
"Cuts to business rates, alcohol duties and a cancellation of planned fuel duty hikes will all be welcome news for families and entrepreneurs struggling under a historic high tax burden, which overall will continue to grow," he said.
"But, as the chancellor reeled off one huge spending pledge after another, many taxpayers will be left wondering why there was no mention of saving money and eradicating waste elsewhere to pay for it all. Targeted tax cuts with more responsible spending would have delivered a much stronger boost to growth while giving much-needed respite to taxpayers and businesses under the cosh."
Referring to the changes in alcohol duty, he added: "After being battered by the pandemic, punters, publicans and producers will be raising a glass to these reforms and rate cuts.
"Shaking up alcohol duties has been a long time coming and big moves to simplify the system are a welcome signal of support for the Great British pub and the hospitality industry more broadly."
And on business rates reforms, he added: "These are a big win as rates are one of the most damaging taxes for small firms, especially those on our high streets. Revaluations every three years instead of five...will ensure that rates better reflect economic reality. It's vital the Government continues to work on how it can help the high street with lower taxes."
Andrew Arthur
FSB: 'clouds gathering' concerning inflation and tax hikes
Responding to the Chancellor's speech, the Federation of Small Businesses (FSB) national chair Mike Cherry said :
"This Budget has delivered some measures that should help to arrest the current decline in small business confidence.
"But, against a backdrop of spiralling costs, supply chain disruption and labour shortages, is there enough here to deliver the Government's vision for a low-tax, high-productivity economy? Unfortunately not. Where inflation and forthcoming tax hikes are concerned, the clouds are gathering."
Andrew Arthur
North West business leaders react to the Chancellor's speech
Since lunchtime, business leaders from across the North West have been giving their reaction to the measures announced by Mr Sunak.
Sacha Lord, night time economy adviser for Greater Manchester, said that with the "much-needed business rate discount and the introduction of tax reforms on alcohol", the Chancellor has recognised the strength and importance of the hospitality sector.
For more, read our North West buisness reaction round-up on Business Live here.
Tamlyn Jones
Jo Gideon MP celebrates
Andrew Arthur
North East chamber: wait for long-term levelling-up plan 'goes on'
Responsing to the Autumn Budget and Spending Review Jonathan Walker, policy director, North East England Chamber of Commerce said:
"The Budget had some welcome announcements for North East businesses but our wait for a long-term levelling up strategy goes on.
"In the near term we were pleased to see Government had listened to our campaigning on the need for support for the hospitality, arts and culture sectors as well as our regional airports which were so badly hit by the pandemic.
"We welcome the confirmation of funding for a number of regeneration and transport projects across the region.
"Similarly, many of our members will benefit from the measures announced today on business rates although they fall short on the substantial reform that is needed.
"However, substantial longer-term strategies like the Levelling Up White Paper, the integrated rail plan and details on how the Shared Prosperity Fund will work, have yet to see the light of day.
"Without these plans it is difficult to judge how much of a long term impact the levelling up agenda will have on our economy.
"We would like to have seen further support for exporters as international trade is so crucial to our economy."
Tamlyn Jones
West Midlands Mayor thanks Chancellor
Andrew Arthur
IoD: 'piecemeal' measures will not give businesses confidence
Responding to the Chancellor's speech the Institute of Director's chief economist, Kitty Ussher, said:
"The crucial test for this Budget was whether it gave business the confidence to invest. The Chancellor's business rates and R&D tax credit reforms are welcome but with hefty hikes in other taxation on the horizon, that may not be enough to convince business leaders to press go on their plans for growth.
"He had an opportunity to partially reverse his previous decisions on employment and profit taxes, made in tougher times, but he chose not to do so.
"While promising a 'skills revolution', the actual measures that were announced, while welcome, felt piecemeal, and will not give business confidence that we have a coherent plan to prevent future labour shortages for our post-pandemic era outside the EU."
Tamlyn Jones
'Much to welcome' says British Chambers of Commerce chief
Shevaun Haviland, director general of the British Chambers of Commerce, said there was "much to welcome" in the Budget for the business community.
"The Chancellor has listened to chambers' long-standing calls for changes to the business rates system and this will be good news for many firms. It will provide much-needed relief for businesses across the country, giving many firms renewed confidence to invest and grow.
"Additional investment in skills, infrastructure and better access to finance will be key drivers for our economic recovery and will provide longer-term benefits and opportunities for businesses across the country.
"Businesses have been battered by 18 months of the pandemic and problems around supply chain costs and disruption, labour shortages, price rises, soaring energy bills and taxes, and there may still be difficult months ahead.
"If firms face unexpected bumps in the road, the Chancellor must be prepared to take further action to enable the economy to fire on all cylinders again."
Andrew Arthur
BCC: 'much to welcome' in this Budget
Giving her reaction to the Chancellor's budget, Shevaun Haviland, director general of the British Chambers of Commerce, said:
"There is much to welcome in this Budget for business communities across the UK.
"The Chancellor has listened to Chambers' long-standing calls for changes to the business rates system and this will be good news for many firms. It will provide much needed relief for businesses across the country, giving many firms renewed confidence to invest and grow.
"Additional investment in skills, infrastructure and better access to finance will be key drivers for our economic recovery and will provide longer-term benefits and opportunities for businesses across the country.
"Businesses have been battered by 18 months of the pandemic and problems around supply chain costs and disruption, labour shortages, price rises, soaring energy bills and taxes, and there may still be difficult months ahead.
"If firms face unexpected bumps in the road, the Chancellor must be prepared to take further action to enable the economy to fire on all cylinders again."
Andrew Arthur
South West business leaders express Budget 'relief'
Tim Jones, chairman of the South West Business Council, said his main feeling was one of "relief" and that the Budget contained nothing that would cause undue worry for businesses.
He said of the Chancellor's overall statement: "This was a business-friendly Budget, with nothing that would cause concern in terms of tax increases."
Mr Jones said announcements on Business Rates reform, with a new 12-month relief for firms that are investing and discounts for retail, hospitality and leisure, were "encouraging" and said: "That package will be valuable to retail and hospitality businesses."
But he was disappointed there was no extension of VAT relief, and said SMEs may be worried about the affordability of the increase in the national living wage from £8.91 to £9.50 an hour from April. However he added: "Most businesses accept that this is part of the justice of employing people."
Mr Jones also highlighted the Government's pledge to invest £20bn in R&D by 2024/25 and said: "That is something we have been calling for and will bring us into world markets and for me is the stand-out item and something a lot of businesses will be responding to in a positive way."
Tamlyn Jones
Chancellor takes carrot rather than stick approach - Weightmans
Haydn Rogan is a tax partner in the Manchester office of law firm Weightmans.
"With two major tax changes around national insurance and corporation tax already made public earlier in the year, it's no surprise that there weren't any headline announcements made. That said, with COP26 just around the corner, the net zero agenda was always going to be a priority for government.
"However, the Chancellor has taken a 'carrot' rather than 'stick' approach when it comes to environmental tax changes, introducing tax incentives to encourage investment in green technology, including a 12-month business rate relief on any new business property improvements, to support net zero targets and a new 100 per cent relief for eligible heat networks to support the decarbonisation of buildings.
"We welcome this approach as well as the decision not to remove the freeze on fuel duty and agree it's not the time to be increasing or levying new taxes to deter less sustainable behaviour.
"It's also reassuring to see the 50 per cent business rate reduction for the hospitality, leisure and retail sectors. This will provide much-needed relief to businesses and will encourage further recovery in sectors which need it most."
Andrew Arthur
CBI welcomes skills investment but says Budget won't transform economy for 'post covid world'
The director-general of the Confederation of British Industry Tony Danker has said the Chancellor has shown he wants to get "firms innovating and the economy growing."
Mr Danker said measures announced today won't do enough to the economy for a "post covid world", but welcomed the announced invesments in skills.
Tamlyn Jones
'Good news for hospitality'
Russell Luckock is chairman of Birmingham pressings firm AE Harris and a regular columnist in our sister newspaper Birmingham Post.
"Rishi Sunak's budget will be good news for the hospitality industry with a range of measures designed to slow down and reverse the closures of pubs and restaurants. It is in line with the Government's decision to tackle the country's debt mountain by supporting investment in business.
"It remains to be seen whether these measures will be fruitful but it is interesting to note that the Government now accepts that four per cent inflation will last right through next year. I believe this is not in line with costs now being demanded for raw materials right across the board. I expect it to be much higher by next spring. As a broad generalisation, a welcome Budget."
Andrew Arthur
Business Secretary: 'solid plan' for stronger economy
Business and Energy Secretary Kwasi Kwarteng has tweeted his support for the Autumn Budget, calling it a "solid plan to deliver a stronger economy for the British people."
Andrew Arthur
PwC: 'generous funding' for public services
PricewaterhouseCoopers has reacted to the Autumn Statment and Spending Review by saying the Chancellor has "seemingly committed a generous funding allocation to public services", compared to previous reviews. in 2010 and 2015.
Rachel Taylor, economic and business affairs leader at PwC, said though that there would be some departments that would argue that the commitments "may be insufficient" to deliver world class public services.
Ms Taylor said: "Government funding is welcome but financial investment alone is not enough.
"To deliver a sustainable economy and to ensure that investment decisions bring the desired results in terms of levelling up, net zero and skills for the future, close collaboration between employers across industries and sectors and the government is critical."
Andrew Arthur
Forum of Private Business: Chancellor's rates reforms ignore small businesses
Business support organisation, the Forum of Private Business, has failed to address the issue of business rates and create a level playing field for small, big and online businsesses.
While it welcomed the extended relief for the hospitality sector, it said other small buisneses had been ignored.
Ian Cass, managing director of the Forum of Private Business said:
"The relief provided to businesses during the pandemic by postponing Business Rates saved many businesses from closing.
"To save our high streets those same businesses need that relief to continue. The 50% allowance for hospitality sector businesses is clearly welcomed, and providing reliefs for green investment is fine, but many of the retail shops that our communities rely on still face what they see as unfair business rates, and deferring the reviews until 2023 risks kicking the can down empty high streets."
Alistair Houghton
Race Equality Foundation CEO says money a 'drop in the ocean' for many communities
Responding to today's Spending Review, CEO of the Race Equality Foundation, Jabeer Butt OBE said: "We wanted to see today's Budget investing in people over places and building back fairer for those communities that have been so badly hit by the many effects of the pandemic.
"Covid has had a disproportionately damaging impact on Black, Asian and minority ethnic families and children, so cash for family hubs and parenting programmes in today's Budget is welcome.
"But the scale of support is too small. It reveals a lack of ambition on the Government's part when it comes to making a meaningful positive impact on these families' lives.
"At a time when many poor UK families are worse off than ever - particularly now that the Universal Credit uplift has been cut, removing £1,040 from their pockets - the money announced is a drop in the ocean."
Andrew Arthur
'Worrying' lack of funding for major rail projects
Chris Oglesby is chief executive of commercial property group Bruntwood which owns and operates offices in cities such as Birmingham, Manchester, Leeds and Liverpool.
He welcomed the certainty that the funding for transport across the regions would provide over the next five years but called it "worrying" that the Budget had passed with no mention of funding to support Northern Powerhouse Rail nor the Eastern leg of HS2.
"These two transformational projects would turbo-charge economic growth in the North and Midlands," he said.
"Alongside our local transport networks, we need to see investment in intercity links - connecting Liverpool, Manchester, Leeds, Bradford, Sheffield and Newcastle - the original agglomeration thesis that drove the whole Northern Powerhouse project.
"This combination is what will unlock the next generation of growth in the North and rebalance the economy.
"Not investing in an underground station at Manchester Piccadilly is a mistake we will come to regret and see as a major strategic error.
"Without this piece of the rail-jigsaw, the opportunity to properly connect Manchester, Leeds and Liverpool - attracting investment and creating jobs - will never be fully realised."
Referring to investment, he said: "Initiatives like the £150 million for regional angel investors are a good start.
"But the government will also need to make sure that programmes like the new £1.4 billion 'Global Britain Investment Fund' is focussed on helping plug the gaps in regional investment too."
He added: "With the publication of its long-awaited Levelling Up white paper still pending, today's Budget and Comprehensive Spending Review have been done without a strategy.
"This is not a good omen for, in this government's own words, its 'defining mission'.
"It's hard to escape the feeling that, a few welcome initiatives aside, Levelling Up continues to amount to little more than a slogan."
How To Live On A Budget Blog
Source: https://www.business-live.co.uk/economic-development/autumn-budget-2021-live-updates-21975986
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