Autumn Budget 2021 – Andrew Moorby’s Post-Budget comments

Andrew Moorby, our Managing Partner, shares his immediate reaction following the Chancellor’s Budget Announcement today…

At the end of the Chancellor’s speech he highlighted that the role of the state had increased significantly but that he hoped to reverse this in the coming years.

His speech did however reflect the increased role of Government in trying to influence investment, growth and, levelled up, prosperity. There was a huge raft of public spending initiatives targeting transport, health, education, innovation and “building back greener”, although many of these had already been announced.

On the tax front, the bad news had already been announced in terms of rising corporation tax rates and increases to national insurance and dividend tax rates and so these were barely mentioned. Instead, the tax announcements were very specific and targeting concentrating on the low paid and those sectors particularly badly hit by the pandemic.

Brief mention was made about the prospect that inflation is likely to remain for longer and at higher rates than previously expected. The Chancellor noted that this was a considerable risk for our economy and confirmed that it would not be allowed to persist. There were, however, no announcements about what measures will be necessary if inflation does not fall back as hoped.

In general, a very detailed and technical Budget where it will take some time to work through the full impact of the changes. The tax burden is however set to rise and therefore, other than those specifically targeted, the vast majority of tax payers will pay more in the coming months and years as the announced tax increases take effect.