What does it all mean?
Now the dust has settled and everyone has had time to review the hundreds of pages of information and work out what it all really means, here's our take on it.
Rishi Sunak's latest Budget on 27th October has been tagged as a 'vanilla' budget. There is very little about tax - which is usually front and centre and the cause of a great deal of press coverage. However, there is the Finance Bill 2022 on the horizon so watch this space.
There will be a temporary relief in business rates for specific sectors such as retail, hospitality and leisure properties. But only for one year.
What wasn't in the budget, but was announced a month or so previously was a 1.25% increase in National Insurance and dividends tax. This was presented as a new levy, rather than an increase - but … if it looks like a duck …! In theory, this levy is intended to be applied only for one year from April 22-23, but may be extended.
Minimum wage increase
The minimum wage will increase to £9.50 per hour (depending on the age of the employee - less for younger people) from April 2022. This means employers will need to ensure that any staff on the current National Living Wage of £8.91 per hour, receive the appropriate uplift in pay.
While it's an increase, it's not a big one and is more likely to hit the industries that are struggling the most. While the staff deserve to earn a reasonable wage, the business owners in those industries where the minimum wage is frequently paid are the same ones that were hit hardest by the pandemic - such as care, hospitality and retail.
The future
The government's intention is to refocus the research and development tax reliefs with a more modern approach, Perhaps they are hoping that enterprising organisations will find ways to improve business and lifestyles, without the government having to actively do anything!
The Budget included some changes aimed at the personal tax payer - such as investment in housing and schools and freezing fuel duty for a year plus a change in the way alcoholic drinks are taxed.
If they're hoping for us all to toast this Budget with our low alcohol tipples, they might be out of luck as it hasn't made any significant changes.