Prime Minister Rishi Sunak is preparing to present an autumn budget. It outlines the UK’s economic plans for a continuous recovery from the Covid-19 pandemic.
He said the focus would be on “keeping finances on a sustainable path.”
The budget shows the amount that each government sector can expect to receive over the next three years.
Prior to the announcement, the Treasury required departments to identify “at least 5% savings and efficiency from their daily budget.” Here’s everything you need to know.
When is your autumn budget?
The prime minister announced in September that he would present the budget on Wednesday, October 27.
It usually takes place early in the afternoon and is shown live on major news channels such as BBC News and Sky News, as well as in the live stream on this page.
What should we expect?
When announcing the budget, Snack said: “Despite the worst recession of 300 years, we not only brought people back to work through a’work plan’, but also continued to realize the priorities of the British people.
“The Spending Review later this year will show you how to continue investing in public services and drive growth while keeping your finances on a sustainable path.”
He also said core sector spending covering welfare and services will increase from 3 percent to 4 percent from April next year.
“From 2024 to 25, spending in the core sector means more £ 140 billion a year in cash than at the start of Congress,” he added.
The prime minister hopes to cut taxes at the Conservative Party convention on Monday, October 4, but said the tax cuts could take some time.
“Anyone who tells you that you can borrow more today and tomorrow will simply organize yourself. Just don’t care about the future.
“Yes, I want a tax cut, but to do that, we need to put our finances back on a sustainable foundation.”
According to reports, the prime minister could lower the threshold at which people start paying off student loans. This is currently starting at £ 27,295 per year.
He may also announce an alternative to a £ 20 weekly Universal Credit hike, which was brought in in response to a pandemic but has been abolished since October 6.
The focus may be on green measures, such as the COP26 Climate Summit in the UK a few days after the budget.
And there may be further changes in capital gains taxes. This is because the prime minister has already frozen in his final budget until 2026, and the tax rate talk is more closely aligned with the income tax rate.
The budget comes after the government announces a 1.25% increase in national insurance to fund health and social care levies, and the Tory manifesto breaks its promise not to increase taxes.