UK and International Tax news

2021 Budget And Spending Review

Tuesday 14th September 2021

The Chancellor has recently launched the Spending Review 2021 which will conclude on 27 October 2021 alongside an Autumn Budget and set out the government’s spending priorities for the Parliament.

The three-year review will set UK government departments’ resource and capital budgets for 2022-23 to 2024-25 and the devolved administrations’ block grants for the same period.

Taken with the additional funding for health and social care announced last week, core departmental spending will grow in real terms at nearly 4% per year on average over this Parliament. By 2024-25 core departmental spending will be £140bn more per year in cash terms than at the start of the Parliament.

At the Spending Review, the government will set out its proposals to ‘Build Back Better’, to deliver the priorities of the British people and to continue to support businesses and jobs through:

  • ensuring strong and innovative public services, by investing in the NHS, education, the criminal justice system and housing;
  • levelling up across the UK to increase and spread opportunity, unleash the potential of places by improving outcomes UK-wide where they lag and working closely with local leaders; and strengthen the private sector where it is weak;
  • leading the transition to Net Zero across the country and more globally;
  • advancing ‘Global Britain’ and seizing the opportunities of EU Exit;
  • delivering the ‘Plan for Growth’ including ambitious plans for an infrastructure and innovation revolution and cementing the UK as a scientific superpower, working in close partnership with the private sector.

The Government expects total day-to-day spending to increase to £440 bn by 2024-25, an increase of nearly £100 bn a year in cash terms over the Parliament.

Capital investment is to increase to over £600 bn over five years, representing the highest sustained level of public sector net investment as a proportion of GDP since the late 1970s.

The Firm will be issuing a summary of any further tax proposals announced after the Budget and Spending Review.

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