Budget 2021 LIVE – Rishi Sunak speech reaction and what cigarette, alcohol, minimum wage & pension changes mean for YOU

CHANCELLOR Rishi Sunak has finished announcing his second Budget of 2021, with economic plans that will take Brits through the winter.

Mr Sunak has made major announcements on the minimum wage, Alcohol Duty, the Universal Credit programme, a £435m crime blitz, the unfreezing of public sector pay, a major homebuilding plan and plans to ease the fuel and supply crisis in a Budget he says will help millions of families up and down the country.

The Chancellor also ditched a 2.84p budget hike in fuel duty – a win for The Sun's Keep It Down campaign.

Mr Sunak is now taking questions on his Budget in the House of Commons.

Follow live reaction and find out what the Budget means for your family in our live blog below…

  • Milica Cosic

    'Today’s Budget sends a clear message'

    Health Secretary Sajid Javid tweeted: "Today's Budget sends a clear message – recovery and reform of health & care an absolute priority.

    He also thanked Rishi Sunak for backing plans including to "tackle the backlog, fix social care and keep the UK at the forefront of research and development".

  • Milica Cosic

    The budget at glance

    In case you missed it, here are the most important facts pulled from the budget today.

  • Milica Cosic

    Rachel Reeves accuses Chancellor of failing to tackle the 'huge issues'

    Rachel Reeves has accused Chancellor, Rishi Sunak, of failing to tackle the "huge issue" that is "adapting to climate change".

    She told MPs: "Adapting to climate change presents opportunities, more jobs, lower bills and cleaner air. But only if we act now and if we act at scale. According to the Office for Budget Responsibility (OBR), failure to act will mean public sector debt to explode later: it is nearly 300% of GDP.

    "The only way to be a prudent and responsible Chancellor is to be a green Chancellor, to invest in a transition to a zero carbon economy and give British businesses a head start in the industry of the future."

    Instead, Ms Reeves insisted home owners are left to face the cost of insulation on their own, and industries like steel and hydrogen are "in a global race but without the support they need".

  • Milica Cosic

    Gov needed to go "further and faster" on minimum wage

    Shadow chancellor Rachel Reeves, has welcomed the increase in the minimum wage, however has said the Government needed to go "further and faster" and should have moved to a rise of at least £10 an hour.

    She welcomed the end of the "punitive" public sector pay freeze, but said: "We know how much this Chancellor likes his smoke and mirrors so we'll be checking the books to make sure the money is there for a real terms pay rise."

    Ms Reeves welcomed the reduction of the Universal Credit taper rate from 63p to 55p but warned working people receiving the benefit "still face a higher marginal tax rate than the Prime Minister".

    She added: "Those unable to work through no fault of their own still face losing £1,000 a year."

  • Milica Cosic

    Labour say struggling families will believe Rishi's "living in a parallel universe"

    Struggling families will believe Rishi Sunak is "living in a parallel universe" following his Budget, Labour has said.

    Shadow chancellor Rachel Reeves told the Commons: "Families struggling with a cost-of-living crisis, businesses hit by a supply chain crisis, those who rely on our schools and hospitals and our police… they won't recognise the world the Chancellor is describing.

    "They will think he is living in a parallel universe."

    Rachel Reeves also told MPs: "The Chancellor in this Budget has decided to cut taxes for banks.

    "So at least the bankers on short-haul flights sipping champagne will be cheering this Budget today."

  • Milica Cosic

    Public slam Rishi for cutting air passenger duty before COP26

    Brits have expressed their anger at the fact that Rishi Sunak has cut air passenger duty, before COP26 is set to take place.

    One user wrote: "Chancellor confirms he’s freezing fuel duty. That followed the cutting of air passenger duty. These are two of the UK’s biggest green taxes and they’re being cut; just before COP. Unless there’s something to offset this the Budget will feel oddly inconsistent with net zero."

    Another wrote: "Bizarre priorities. Lowering airport passenger duty just before COP26."

    A third chimed in saying: "So cutting domestic air passenger duty tax is in line with the UK net zero plan? It sounds counterproductive…"

  • Milica Cosic

    An economic bounce back

    In a landmark budget today the Chancellor swiped the nation's credit card with a cash-splashing Budget of cheaper booze, Universal Credit boosts and minimum wage hikes.

    He seized upon a roaring economic bounce back to announce "historically" high spending with more money for public services.

    In a major win for Brits he announced measures to fix the delivery crisis, pour money into our World Cup bid and end the pay freeze for teachers and cops.

    Mr Sunak gave a rosy picture of the nation's economy by hailing rising employment, investment and wages.

    He revealed the economy is now expected to recover fully from Covid by the end of the year, earlier than thought last March.

    Seizing on the positive outlook, he vowed to throw an arm around vulnerable families struggling with the cost of living with "historically high levels of public spending".

    But the Chancellor insisted we need to fix the roof while the sun is shining by getting the finances back on to a more even keel.

    He unveiled strict new rules forcing him to cut borrowing and making it harder to splash the cash – "because this isn’t the government's money, this is taxpayer's money."

  • Natasha Clark

    Labour hit back

    Struggling families will believe Rishi Sunak is "living in a parallel universe" following his Budget, Labour has said.

    Shadow chancellor Rachel Reeves told the Commons: "Families struggling with a cost-of-living crisis, businesses hit by a supply chain crisis, those who rely on our schools and hospitals and our police… they won't recognise the world the Chancellor is describing.

    "They will think he is living in a parallel universe."

    Rachel Reeves also told MPs: "The Chancellor in this Budget has decided to cut taxes for banks.

    "So at least the bankers on short-haul flights sipping champagne will be cheering this Budget today."

  • Milica Cosic

    'Mission’ to cut taxes by the next General Election

    Rishi Sunak today declared he'll make it his “mission” to cut taxes again before the next General Election, by 2024.

    Announcing his landmark Budget to the Commons this afternoon he pledged to build a "society that rewards ingenuity".

    He said that he wants to see workers keep more cash in their pockets as the economy rebounds from the pandemic.

    Rishi said: "As we look towards the future I want to say this simple thing to the House and the British people.

    "My goal is to reduce taxes by the end of this parliament. I want taxes to be going down, not up.

    "I want this to be society that rewards energy, ingenuity and inventiveness, a society that rewards work.

    "That is what we believe on this side of the House, that is my mission over the remainder of this parliament."

  • Natasha Clark

    That's your lot!

    Well, that was exciting, wasn't it?

    Let's round up the best bits of the splashed cash…

    • Universal Credit taper rate cut by 8 per cent – saving Brits thousands
    • A pay hike for everyone on the living and minimum wage
    • Rishi Sunak vows to cut taxes before the next election
    • A huge booze shake up which will see loads of drinks cut in price – and some from tonight
    • Air passenger duty cut for UK flights, but going up for very long ones
    • Fuel duty rise scrapped
    • A huge cut to business rates for firms struggling to bounce back from the pandemic
    • More cash for traineeships and adult learning education
    • More tax relief for theatres and museums
    • Millions for a crime blitz
    • Extra cash to go into the cladding fund to fund ripping dangerous materials off buildings
    • More homes on brownfield sites to boost house building
    • Rishi introduced new fiscal rules to make sure the debt would fall in the coming years

    Universal win

    And finally… here's the rabbit Rishi Sunak tried to hide.

    And The Sun have been arguing for for years.

    A huge cut to the Universal Credit taper rate, and a rise in the work allowance.

    It means 2million Brits on benefits but are in work will see a huge hike to their pay packets.

    A big change, and a big win for our Make Universal Credit Work campaign.

    Cheers, Rishi!

    Wage hike

    And here's what the Chancellor revealed yesterday – a pay hike for everyone on the minimum wage.

    Keep it RIGHT down

    And as The Sun reported this week – fuel duty frozen for the 12th year a row.

    That's an average saving of £1,900 for a car driver over the last decade.

    Big win for our Keep it Down campaign.

    Girls night out

    It means that the price of a pint will be cut by 3p from Feb 2023.

    And right now?

    Well, Rishi announced he will cancel the planned increase in duty on Scotch Whisky, wine, cider and beer… from midnight.

    That's worth £3bn. Nice one, Rishi.

    Big cheers from the Tories today.

    Pub leg up

    The final move is to help Britain's much-loved pubs.

    Draft beer will see some relief, meaning help for big pubs serving huge kegs.

    And it will be cut by 5 per cent. Cheers! Time for a drink, I think…

    • Natasha Clark

      Bottoms up

      And another good result for English sparkling wine drinkers – with a cut to them.

      Rishi says: "I am going to end the irrational duty premium of 28 per cent they currently have."

      It means Brits will pay less for English and Welsh sparkling wines.

      And those fruity-cider lovers will also see a cut.

      All this from a tee-totaller!

    • Natasha Clark

      Cheers!

      Now it's time for the shake up of alcohol duties, which was rumoured a few weeks ago.

      He said it will be the biggest change in 140 years, and will create a new, simpler, fairer and healthier system.

      Slashing the number of bands from 15 down to 6.

      The stronger the drink, the higher the tax.

      Strong wine and high strength ciders will see a small increase… but Rishi says that's the right thing to do.

      It also means many low alcohol drinks will get a huge cut. Rose, fruit ciders, and liquor-drinkers will be pleased.

    • Natasha Clark

      Biz rates slash for a year

      Rishi reveals a whopping 50 per cent business rates cut for pubs, shops and other areas hardest hit by the pandemic for the next year.

      He says it's the biggest cut in over 30 years, and is worth around £1.7bn.

      That will really please some of those firms who were really whacked by Covid, and the Chancellor will hope they can get back on their feet.

    • Natasha Clark

      Let's fly!

      Rishi cuts air passenger duty on internal UK flights.

      But he adds on an extra £91 on long, long flights such as those to Australia.

      Anyone flying more than 5,500 miles will have to pay extra. It's likely to whack only around five per cent of flights, though.

    • Natasha Clark

      Crime blitz cash

      The Chancellor confirmed an extra £435million was being pumped into a pot to tackle crime and support victims.

      It includes £50million for neighbourhoods to install more CCTV and street lighting following the horrific kidnap and murder of Sarah Everard.

      The current money to help victims such as domestic abuse survivors will rise by 85 per cent to £185million.

      Another £80million has also been earmarked for the CPS to push through more rape and sexual assault cases.

    • Natasha Clark

      Invest for success

      More cash for spending on research and development – this investment the Chancellor hopes will continue to see our economic recovery steam ahead.

      As our Kate Ferguson says, it means Britain is spending more as a % than other nations including Germany, France and the US.

    • Natasha Clark

      Splashing the cash

      And the Chancellor appears to have nothing more than a glass of water next to him on the desk… no tipples today for Mr Teetotal.

    • Natasha Clark

      Spenny Rishi…

      So, who is gonna pay for all this? Numbers in the small print coming up…

    • Natasha Clark

      NHS-Yes!

      More cash for the NHS to tackle growing waiting lists and whittle down the backlog.

      Rishi says: "At the start of this Parliament, resource spending on healthcare was £133bn. Today’s Spending Review confirms that by the end of the Parliament, it will increase by £44bn to over £177bn.

      "And the extra revenue we’re now forecast to raise from the Health and Social Care Levy is going direct to the NHS and social care as promised."

      He says the health budget will be largest since 2010, when David Cameron came in and started his austerity programme.

      He promises more hospitals, more nurses, more appointments, and more diagnostic centres.

    • Natasha Clark

      School's back

      More cash for schools, Rishi reveals.

      An extra £4.7billion by 2024/5.

      And tripling the investment into kids with special educational needs and disabilities – creating 30,000 new school places.

      Total education catch up will now be £5bn – still around £10bn short of what the catch up tsar Kevan Collins asked for before he resigned.

      But better than nothing.

      Source: Read Full Article