There has been more about reported about Rishi Sunak's £90 sliders and the can of Sprite on his desk (do remember the seven fillings in March's 'coke-gate') than the actual content of the Treasury's big autumnal announcements.

Increasingly, the challenge for updating clients is that most of the Budget is already public knowledge. Sunak incurred the wrath of Lindsay Hoyle, speaker of the House, on Tuesday for releasing much of the Budget to the media before Parliament. This seems a recurring theme – much the same happened in March.

There has been lots of fanfare about spending on big infrastructure, the NHS and notably a rise in the National Living Wage to £9.50 per hour. Sunak has clearly been in a spending mood in what he terms is "an economy fit for the new age of optimism". However, the eye-watering levels of pandemic debt and significant spending will need to be paid for somehow. That somehow did not really find its way into the Autumn Budget although Government departments have been asked to "identify 5% savings and efficiencies from day to day budgets". Given that the anticipated CGT raise did not make it into this budget, we would not be surprised to see it featuring in the Spring Budget.

The Office of Budget Responsibility expects the economy to return to pre-Covid levels at the turn of the year. With that, inflation is back on the agenda. The cost of living is likely to be higher for the foreseeable future, at least into the New Year according to the Chancellor.

Some of the headlines:

  • There are some changes to the tax system and a heavy focus on the business rates. The Residential Property Developers Tax will be levied on those developers with profits over £25m at a rate of 4%. This tax will partly fund the removal of unsafe cladding.
  • Flights between home nations will be subject to lower 'home' air passenger duty from April 2023.
  • Preferential Tonnage Tax in shipping if a ship displays the red ensign of the UK.
  • Fuel duty rise cancelled.
  • Corporation tax remains unchanged.
  • Business rates will remain but with reform. More frequent revaluations every three years starting from April 2023. A new business rate improvement relief - businesses will be able to make property improvements and they will be tax free for a year. A 50% business rate discount will be come into effect for one year for hospitality, entertainment and leisure industries for up to a maximum of £110,000.
  • Alcohol duty is to be simplified. Main duty rates reduced from 15% to 6%. Simply put, the stronger the drink, the higher the duty. Proposals for a new small producer relief for craft beers and cider makers where alcohol level less than 8.5%. Duty premium on sparkling wines will be reduced to that of 'still' wines.
  • A cut to the Universal Credit taper rate to be introduced no later than 1 December 2021.

We can only wait in anticipation for what item of clothing Sunak will be modelling in Spring 2022 and his fizzy drink of choice (or given the reduction in alcohol duty, perhaps a glass of English sparkling wine). Oh, and not forgetting the overhaul of the tax system and whether that may or may not come to pass!

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