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{{Short description|United Kingdom budget statement delivered in October 2021}}
{{Use dmy dates|date=November 2022}}
{{Infobox government budget|year=October 2021|title=United Kingdom budget|bill_link=|bill=|image=Royal Coat of Arms of the United Kingdom (HM Government).svg|imagesize=200px|caption=|date_submitted=|submitter=|submitted_to=|presented=Wednesday 27 October 2021|passed=|parliament=[[List of MPs elected in the 2019 United Kingdom general election|58th]]|party=[[Second Johnson ministry|Conservative Party]]|minister=|treasurer=|chancellor=[[Rishi Sunak]]|Total_Revenue=|Total_Expenditures=|spending=|tax_cut=|debt_payment=|surplus=|deficit=|debt=|gdp=|url=|previous_budget=March 2021 United Kingdom budget|previous_year=March 2021|next_budget=September 2022 United Kingdom mini-budget|next_year=September 2022 mini-budget|country=United Kingdom}}
[[File:Autumn Budget and Spending Review 2021 Speech.png|thumb|[[Rishi Sunak]] making the announcement of the autumn budget]]

The '''October 2021 United Kingdom budget''', officially known as the '''Autumn Budget and Spending Review 2021. A Stronger Economy for the British People''', was a [[Budget of the United Kingdom|budget statement]] made by [[Chancellor of the Exchequer]] [[Rishi Sunak]] on 27 October 2021.<ref>{{Cite news|date=2021-10-21|title=Budget 2021: What is it and when will it happen?|language=en-GB|work=BBC News|url=https://www.bbc.com/news/business-55765868|access-date=2021-10-24}}</ref> It was the third and final consecutive budget delivered by Sunak before his resignation in July 2022.<ref name=":0">{{Cite web|title=Budget 2021: Rishi Sunak fails to commit to eastern HS2 leg days before autumn Budget is revealed in Commons|url=https://news.sky.com/story/budget-2021-rishi-sunak-fails-to-commit-to-eastern-hs2-leg-days-before-autumn-budget-is-revealed-in-commons-12443091|access-date=2021-10-24|website=Sky News|language=en}}</ref>

Many of the announcements to be made in the budget were previewed before budget day, drawing criticism and anger from the House of Commons. In response to the criticism, Sunak said the budget "begins the work of preparing for a new economy".<ref>{{Cite news|url=https://www.bbc.com/news/uk-politics-59052997|title=Budget 2021: Sunak promises new post-Covid economy|work=BBC News |date=Oct 27, 2021|accessdate=Oct 27, 2021}}</ref>

== Key issues ==
[[BBC News]] reported six key issues expected to be addressed in the budget:<ref>{{Cite news|date=2021-10-22|title=Budget 2021: Six things that could affect you|language=en-GB|work=BBC News|url=https://www.bbc.com/news/business-58955264|access-date=2021-10-24}}</ref>

* [[Value-added tax]] on energy bills for the crises in [[2021 United Kingdom fuel supply crisis|fuel supply]] and [[2021 United Kingdom natural gas supplier crisis|natural gas suppliers]]
* [[Alcohol law|Alcohol tax]]
* [[Capital gains tax in the United Kingdom|Capital gains tax]]
* [[Student loans and grants in the United Kingdom|Student loans]]
* [[Minimum wage in the UK|Minimum wage rise]]
* [[Pensions in the United Kingdom|Pension rate allowance]]

Other issues included regional transport,<ref>{{Cite news|date=2021-10-23|title=Budget 2021: English city regions to get £6.9bn for public transport|language=en-GB|work=BBC News|url=https://www.bbc.com/news/business-59017503|access-date=2021-10-24}}</ref> [[High Speed 2]] and the [[Northern Powerhouse]].<ref name=":0" />

==Changes announced==
{{Update section|date=October 2021}}

The budget increased in-work support through the [[Universal Credit]] system by increasing the work allowances by £500 a year, and reducing the post-tax deduction taper rate from 63% to 55%.<ref name=politics-20211027>{{cite news |url=https://www.politics.co.uk/opinion-former/press-release/2021/10/27/low-incomes-tax-reform-group-good-news-for-some-uc-claimants-but-the-detail-is-key/ |title=Low Incomes Tax Reform Group: Good news for some UC claimants - but the detail is key |last1=Verma |first1=Hamant |last2=Crozier |first2=George |website=politics.co.uk |date=27 October 2021 |access-date=28 October 2021}}</ref> It also simplified alcohol duties in a way which benefited lower-strength drinks<ref>{{cite news |last1=Davies |first1=Rob |title=Sunak unveils overhaul of alcohol duty and tax cuts on some drinks |url=https://www.theguardian.com/uk-news/2021/oct/27/sunak-unveils-overhaul-of-alcohol-duty-and-tax-cuts-on-alcoholic-drinks-budget |work=The Guardian |date=27 October 2021}}</ref> and cut the surcharge on UK bank profits to 3% and raised the surcharge threshold to £100m.<ref>{{cite news |last1=Morris |first1=Stephen |title=Tax surcharge on UK bank profits cut to 3% in Budget |url=https://www.ft.com/content/00edc75d-f45d-4f33-a042-79cdfd586026 |work=Financial Times |date=27 October 2021}}</ref>

Development funding of £5m was allocated for the reopening of [[Wellington, Somerset|Wellington]] and [[Disused railway stations on the Bristol to Exeter Line#Cullompton|Cullompton]] railway stations.<ref name="BBC2021-10-28">{{cite web|date=2021-10-28|title=Budget 2021: Funding backs reopening of Cullompton Railway Station|url=https://www.bbc.co.uk/news/uk-england-devon-59082444|access-date=2021-10-29|website=[[BBC News Online]]}}</ref> [[Devon County Council]] was given £50,000 toward the cost of creating of a new [[Tavistock railway station]] and the reconstruction of the line to serve it.<ref>{{cite news|last1=Clark|first1=Daniel|date=2 November 2021|title=Tavistock railway return gathers steam after extra funding|publisher=Local World / Plymouth Herald|url=https://www.plymouthherald.co.uk/news/plymouth-news/tavistock-railway-return-gathers-steam-6142262|access-date=2 January 2022}}</ref>

£560m of investment was announced for the [[Levelling Up White Paper]].<ref>{{Cite news|date=2022-02-01|title=Areas with weak education targeted for levelling up|language=en-GB|work=BBC News|url=https://www.bbc.com/news/education-60213729|access-date=2022-02-02}}</ref>

== Response ==
Labour leader [[Keir Starmer]] tested positive for [[COVID-19]] and so was replaced by [[Ed Miliband]] at [[Prime Minister's Questions]].<ref>{{Cite news|date=2021-10-27|title=Budget 2021: Labour leader Sir Keir Starmer misses debate after positive Covid test|language=en-GB|work=BBC News|url=https://www.bbc.com/news/uk-politics-59065696|access-date=2021-10-28}}</ref> [[Shadow Chancellor of the Exchequer]] [[Rachel Reeves]] responded to the budget in the [[House of Commons of the United Kingdom|House of Commons]].<ref>{{Cite web|last=Fisher|first=Andrew|date=2021-10-27|title=Rachel Reeves' Budget response was admirable, but Labour must be bolder to take down the Tories|url=https://inews.co.uk/opinion/rachel-reeves-budget-response-admirable-labour-bolder-take-down-tories-1270698|access-date=2021-10-28|website=inews.co.uk|language=en}}</ref> [[Leader of the Liberal Democrats]] [[Ed Davey]] said the budget made Sunak appear "out of touch".<ref>{{Citation|title=Sir Ed Davey MP says 2021 Budget shows Chancellor Rishi Sunak is 'out of touch'|url=https://www.youtube.com/watch?v=9jgpAy5DT-s|language=en|access-date=2021-10-28}}</ref> [[Tom Harris (British politician)|Tom Harris]] in ''[[The Daily Telegraph]]'' described the budget as [[Brownism|Brownite]].<ref>{{Cite news|last=Harris|first=Tom|date=2021-10-27|title=This Brownite Budget left Labour with little to complain about|language=en-GB|work=The Daily Telegraph|url=https://www.telegraph.co.uk/news/2021/10/27/brownite-budget-left-labour-little-complain/|url-access=limited|access-date=2021-10-28|issn=0307-1235}}</ref>

The [[Institute for Fiscal Studies]] (IFS) said the budget would leave millions of people worse off in 2022, predicting that inflation and higher taxes on incomes would offset small wage increases for middle earners, while poorer households would feel "real pain".<ref>{{Cite news|url=https://www.bbc.com/news/business-59076532|title=Budget 2021: Millions will be worse off in 2022, says IFS|work=BBC News |date=October 28, 2021}}</ref><ref>{{cite news |last1=Wright |first1=Oliver |last2=Smyth |first2=Chris |last3=Zeffman |first3=Henry |title=Budget 2021: Middle earners will be 'worse off' next year after Sunak's spending spree |url=https://www.thetimes.co.uk/article/budget-2021-rishi-sunak-spending-spree-covid-nhs-explained-xb0sv50j3 |work=The Times |date=28 October 2021}}</ref> The [[Resolution Foundation]] calculated that the budget would increase incomes of the poorest fifth of households by 2.8% but reduce middle incomes by about 2%.<ref name=bbc-20211028>{{cite news |url=https://www.bbc.co.uk/news/business-59074026 |title=Tax burden to rise by £3,000 per family, warns think tank |work=BBC News |date=28 October 2021 |access-date=28 October 2021}}</ref> The budget increased public spending to levels not seen since the 1970s, according to ''[[The Daily Telegraph]]''.<ref>{{cite news |last1=Riley-Smith |first1=Ben |title=The drinks are on me, declares Rishi Sunak in Budget spending spree |url=https://www.telegraph.co.uk/politics/2021/10/27/drinks-declares-rishi-sunak-budget-spending-spree/ |work=The Telegraph |date=27 October 2021}}</ref>

The IFS also noted that changes to alcohol duty may not apply to Northern Ireland because of the [[Northern Ireland protocol]] agreed between the UK and the European Union following [[Brexit]].<ref>{{Cite news|url=https://www.bbc.com/news/uk-northern-ireland-59081522|title=Budget 2021: UK alcohol tax reforms might not apply in NI|work=BBC News |date=Oct 28, 2021|accessdate=Oct 28, 2021}}</ref>

== References ==
{{Reflist}}{{United Kingdom budget}}{{Rishi Sunak}}
[[Category:COVID-19 pandemic in the United Kingdom]]
[[Category:October 2021 events in the United Kingdom|Budget]]
[[Category:2021 in British politics|Budget, 10]]
[[Category:2021 government budgets|United Kingdom, 2021 10]]
[[Category:United Kingdom budgets|2021 10]]
[[Category:Rishi Sunak]]

October 2021 United Kingdom budget - Revision history

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