The Budget 2021 – All You Need to Know

After a year of Covid-19 restrictions, the 2021 Budget had a lot of ground to cover. There has been considerable speculation over how the extra expense of the furlough scheme, funding the NHS and supporting those out of work would be paid for.

22nd April 2021

It was also questionable whether the current package of support for individuals and businesses could be sustained.
So what are the plans for recovering from the pandemic and rebuilding the economy?

These are the main points to note from this year’s Budget announcement.

The Economy


Personal Tax

The standard lifetime allowance will be frozen at £1,073,100 up to and including tax year 2025/26. This would have otherwise been expected to increase by CPI each year, and so was expected to increase to £1,078,900 in the next tax year.

No other changes have been announced regarding pensions.


Work and Benefits

Health and Social Care

Shopping and Leisure





What Was Not Covered?
There have been discussions of a wealth tax, with many advocates suggesting this as a viable way to cover some of the costs of the pandemic, and to address inequality. This has not been taken forward by the government, either due to practical concerns or fears it would be unpopular.

Critics have suggested that the Budget does not go far enough towards rebuilding the economy, supporting social care, addressing child poverty, or funding the NHS.

While many struggling industries have been offered a lifeline by the latest support announcements, the aviation industry was noticeably absent from the list.

For the second year running, the Budget has been more about spending than saving, which is unusual for a Conservative government. While the Corporation Tax rise will be an unwelcome change for many businesses, it is partly offset by the package of support and incentives designed to help firms recover from the pandemic.

With most areas of personal taxation relatively untouched, it’s unlikely that you will need to make any urgent changes to your financial plans or investment strategy.

Please don’t hesitate to contact a member of the team if you would like to find out more about this year’s Budget and how it affects you.

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