Seeking an “age of optimism”: Sunak focuses on levelling up in Budget

By Ged Henderson

27 Oct 2021

Chancellor Rishi Sunak this afternoon unveiled his spending plans which he said would prepare the country for a post-Covid “age of optimism”.

In his Budget statement he confirmed a new 50 per cent business rates discount for companies in the retail hospitality and leisure sectors that will last for a year.

Alongside the Small Business Rates Relief, the chancellor said his measures would mean more than 90 per cent of all retail, hospitality and leisure businesses will see a discount of at least 50 per cent.

To make the business rates system fairer, he also announced there will be revaluations every three years.

And he said a new investment relief will encourage business to invest in technologies like solar panels. The planned increase in the business rates multiplier was cancelled.

In his speech he also put the levelling up agenda centre stage, with the first £1.76bn of levelling up fund cash allocated over 100 areas of the UK, including Burnley.

Nearly £7bn is to be given to areas such as Greater Manchester, the West Midlands and South Yorkshire for transport projects.

The chancellor also moved to support the drinks and hospitality sector, with the “most radical simplification of alcohol duty” in more than a century. The reform will mean just six duty rates on alcohol.

And he went on to announce a “draught relief” which will apply a five per cent cut to duty on draught beer and deliver a 3p permanent cut in the cost of a pint.

The planned rise in alcohol duty was also scrapped, along with a rise in fuel duty because, with fuel prices at the highest level in eight years the chancellor said he was “not prepared to add to the squeeze on families and small businesses”.

On housing, the chancellor said £24bn will be earmarked for “a multi-year” housing settlement.

He announced £11.5bn would be set aside to build up to 180,000 new affordable homes, with brownfield land targeted for new homes.

Mr Sunak also had announcements to make on R&D, announcing tax relief rule changes.

Their scope will be expanded to cover cloud computing and date and from April 2023 the relief system will concentrate on investment in the UK.

He told the Commons that a £1.4bn British investment fund is being set up to promote inward investment.

And he announced a new scale-up visa will make it easier for firms to hire talented people from overseas.

On public sector pay, Rishi Sunak says those workers will “see fair, and affordable” pay rises across the next few years, which will return to being made independently.

He confirmed the earlier announcement that around two million workers will get a pay rise next year when the National Living Wage rises from £8.91 an hour to £9.50.

And he also announced a cut in the universal credit taper rate, which he described as a “hidden tax on work” from 63 per cent to 55 per cent. He described it as a tax cut next year worth more than £2bn and helping nearly two million families.

He told MPs: “Taxes are rising to their highest level as a percentage of GDP since the early 1950s. I don’t like it, but I cannot apologise for it – it’s the result of the unprecedented crisis we faced and the extraordinary action we took in response.

“But now, we have a choice. Do we want to live in a country where the response to every question is what is the government going to do about it?”

He says the government "should have limits", and as a result, his goal is to reduce taxes by the end of this Parliament.

And he added: “I want taxes to be going down not up. I want this to be a society that rewards energy, ingenuity and inventiveness. A society that rewards work.”

Enjoyed this? Read more from Ged Henderson

Latest news

1

Your time to shine in the Lancashire Tourism Awards Winners Of The Lancashire Tourism Awards 2024 Held On Tues 11 Feb 2025

Your time to shine in the Lancashire Tourism Awards

19 Jun 2025

2

Employer event to help keep region’s workers healthy Ben Harrison

Employer event to help keep region’s workers healthy

19 Jun 2025

3

Plan to get Lancashire working Lancashire Combined Authority

Plan to get Lancashire working

19 Jun 2025

4

Napthens confirms expansion into Manchester Stephen Faulkner

Napthens confirms expansion into Manchester

18 Jun 2025

5

Counting the cost of work-related illness David Dunwell and Jen Briggs

Counting the cost of work-related illness

17 Jun 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

90 day Business Planning Workshop
LBV Event Header.png.png
LBV Hub Seminars
20 Jun 2025 - 20 Jun 2025

90 day Business Planning Workshop

Bolton Arena, Arena Approach, Horwich, BL6 6LB

09:00 - 16:30

Chamber Business Lunch – June
Chamber Logo1.png.png
LBV Hub Networking
20 Jun 2025 - 20 Jun 2025

Chamber Business Lunch – June

Lancaster House Hotel, Bailrigg, Lancaster, LA1 4GL

11:00 - 13:30

Moonlight and Memories Walk 2025
MMW.jpg.jpg
LBV Hub Fundraisers
21 Jun 2025 - 21 Jun 2025

Moonlight and Memories Walk 2025

St Catherine's Hospice, Preston, PR5 5XU

18:00 - 23:00

Emergency First Aid at Work – June 2025
Chamber Logo1.png.png
LBV Hub Seminars
23 Jun 2025 - 23 Jun 2025

Emergency First Aid at Work – June 2025

FGH Training 3rd Floor, Storey House, White Cross Business Park,, Lancaster, LA1 4XQ

09:00 - 16:00

Business Bike Club – July
Chamber Logo1.png.png
LBV Hub Networking
01 Jul 2025 - 01 Jul 2025

Business Bike Club – July

Various, Lancaster, LA

08:00 - 09:30

Chamber Breakfast Networking – July
Chamber Logo1.png.png
LBV Hub Networking
02 Jul 2025 - 02 Jul 2025

Chamber Breakfast Networking – July

St John's Hospice, Slyne Road, Lancaster, LA2 6ST

08:00 - 10:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin