Autumn Budget and Spending Review 2021

On Wednesday 27 October 2021 the Chancellor came to the Chamber to set out Autumn Budget and Spending Review.  This Budget was a missed opportunity. Whilst I welcome the cut to the Universal Credit taper, this not a tax cut but a benefit change. The Chancellor based the budget on out of date forecasts according to the IFS who said the outlook for living standards was “actually awful”. Less than a third (1.9million households) will benefit from the announcement. 

There were glaring omissions. It is alarming that three days ahead of COP26, there was nothing in the Budget on climate change or green jobs and homeowners are left to face the costs of insulation on their own. There was nothing for the  police and no mention of HS2. 

The catch-up package offered to pupils was far off the amount needed to ensure the learning and wellbeing of our children do not continue to suffer as a result of the pandemic. 

The Budget confirms that taxes will reach their highest level in over seventy years, rising to 36.2% in 2026/27. This is the highest tax burden in peacetime. According to some experts, taxes will be £3,000 more per household than when Boris Johnson first became Prime Minister. This is staggering and hurts working families.