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Autumn Budget 2021

On 27 October 2021, alongside the publication of the government's comprehensive spending review, the Chancellor will announce the details of his second budget of 2021. Read ICAEW's analysis and reaction.

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Initial ICAEW analysis

Analysis from ICAEW's experts on the Autumn Budget 2021 and the comprehensive spending review published on 27 October 2021.
Analysis from ICAEW's experts on the Autumn Budget 2021 and the comprehensive spending review published on 27 October 2021.
A person's hand typing into a calculator
Analysis from ICAEW's experts on the Autumn Budget 2021 and the comprehensive spending review published on 27 October 2021.
ICAEW reaction

A Budget full of fizz but many questions to answer

ICAEW experts have welcomed an Autumn Budget containing measures to tackle some of the UK’s immediate challenges, but with inflation and living costs rising the fizz could go flat very quickly.
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Public sector

Tough choices facing public finance

More tax, more investment, more spending, less borrowing. ICAEW’s Public Sector experts examine the Spending Review and Autumn Budget 2021 announcements.
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Tax

An awesome performance, but few tax measures

ICAEW’s Head of Tax on the Budget, which despite announcements on business rates, R&D tax relief and a promise of future tax cuts, provided more political spectacle than detailed tax policy.
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Business

Autumn Budget 2021: small wins for business, but a lack of ‘wow’

The measures outlined in the Budget’s speech are welcome, but do little to address immediate cost and supply chain pressures.
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Latest...

Are there reasons for charity accountants to feel positive about tax?
  • Article
  • 08 Jun 2022
Are you a glass half full or a glass half empty person? I imagine that many of us who are chartered accountants would have to say that our training encourages us to be more ‘half glass empty’ than ‘half glass full’! The Chancellors’ Spring Statement may have given us a perfect opportunity to test that out for ourselves.
Exclusive When science and the tax system don’t mix
  • Article
  • 06 Jun 2022
The government is keen to encourage business investment and innovation, but the application of the tax rules can be less than clear. Technical Editor Lindsey Wicks explains.
Funding concerns over new Public Sector Fraud Authority
  • Article
  • 13 Apr 2022
A new Public Sector Fraud Authority was announced in the Spring Statement, but will the £24.7m funding increase over three years be enough to tackle the billions of pounds lost each year to fraud?
NIC for the self-employed: a clarification and reminder following the Spring Statement
  • Article
  • 04 Apr 2022
Voluntary class 2 national insurance contributions are unaffected by the Spring Statement changes, but don’t forget that class 4 losses might need recording separately.
ICAEW technical round-up: March 2022
  • Article
  • 29 Mar 2022
This month’s top technical stories include an overview of the tax measures announced in the Spring Statement, HMRC mandating the format of employment expenses claims and a podcast discussing death and digital assets.
Chart of the week: Spring Statement 2022
  • Article
  • 24 Mar 2022
This week we look at the Spring Statement, where the story is all about inflation as the Chancellor responded to the pressures that have contributed to the cost of living crisis.
Spring Statement: NIC measures welcome but not as simple as the Chancellor’s speech made it sound
  • Article
  • 23 Mar 2022
National insurance contributions thresholds will rise for employees and the self-employed, together with the employment allowance for small employers. Class 2 NIC will include a zero-rate band.
Spring Statement: An overview of tax measures from ICAEW’s Tax Faculty
  • Article
  • 23 Mar 2022
Chancellor Rishi Sunak delivered his Spring Statement 2022 against a backdrop of war in Ukraine. Aside from the terrible human cost, the war is now also exacerbating a cost of living crisis. Frank Haskew, ICAEW’s Head of Taxation Strategy, summarises the Spring Statement announcements and their potential impact

Insights special: Public sector finances

The coronavirus pandemic has taken its toll on the health of the general public and on public sector finances. ICAEW Insights investigates the shape of government finances, in the UK and internationally.

Read more
A stethoscope

Public sector

Spending Review leaves inflationary sting in local authorities
  • Article
  • 29 Oct 2021
A relatively large increase in central government funding for local authorities is likely to be offset by a below-inflation council tax rise next year. Further cuts may be needed to balance the books in local authorities facing rising costs on top of low reserves.
A trillion-pound Autumn Budget driven by tax and spending
  • Article
  • 28 Oct 2021
The Chancellor used tax rises to start repairing the public finances but spending pressures could derail his hopes for a pre-election tax giveaway in 2023 or 2024.
Chart of the week: Spending Review 2021
  • Article
  • 28 Oct 2021
Chancellor of the Exchequer Rishi Sunak found some extra money to supplement the Spending Review 2021, turning a very tough settlement for government departments into a moderately tough one.
Tough choices facing public finance
  • Article
  • 27 Oct 2021
More tax, more investment, more spending, less borrowing. ICAEW’s Public Sector experts examine the Spending Review and Autumn Budget 2021 announcements.
What is the Spending Review and Autumn Budget all about?
  • Article
  • 26 Oct 2021
Today’s Spending Review and Autumn Budget is one of the most important occasions for any Chancellor of the Exchequer, but there is a lot to grasp. We attempt to demystify what is going on with this brief explainer.
Chart of the week: Pre-Spending Review departmental spending
  • Article
  • 21 Oct 2021
Our chart this week looks at the core departmental resource budgets that are central to next Wednesday’s long-awaited Spending Review.
Use Spending Review to establish a "financial platform for delivery"
  • Article
  • 12 Oct 2021
Alison Ring, Director for Public Sector at ICAEW, has written to the Chief Secretary to the Treasury ahead of Spending Review 2021 expressing ICAEW’s view that it should be centred on the three key themes of stable funding, fiscal resilience and financial capability.
Chart of the week: capital investment before the Spending Review
  • Article
  • 30 Sep 2021
Given that capital budgets are often the first to be cut when money is tight, will the planned growth in capital investment survive the Spending Review later this month?

Tax

Tax Faculty analysis of Autumn Budget 2021 ICAEW's Tax Faculty provides a comprehensive summary of the announcements on tax and related matters in the Budget on 27 October.
Limited additional funding for HMRC in Spending Review
  • Article
  • 28 Oct 2021
HMRC’s Spending Review 2021 settlement will see its spending, excluding that ringfenced for COVID-19, increase to £5.2bn per year by 2024/25. ICAEW’s Tax Faculty explains how HMRC might prioritise the £0.9bn funding increase on its 2019/20 settlement.
An awesome performance, but few tax measures
  • Article
  • 27 Oct 2021
ICAEW’s Head of Tax on the Budget, which despite announcements on business rates, R&D tax relief and a promise of future tax cuts, provided more political spectacle than detailed tax policy.
Budget confirms one-year delay to basis period reform
  • Article
  • 27 Oct 2021
The government has announced that reforms to the taxation of unincorporated businesses (known as ‘basis period reform’) will go ahead as planned, although implementation has been pushed back to 2024.
Budget aims to boost UK’s attractiveness to business
  • Article
  • 27 Oct 2021
A number of measures announced in the Autumn Budget are designed to make the UK a more attractive place to do business. ICAEW’s Tax Faculty outlines the key tax-related measures, including changes to R&D reliefs and enabling companies to move their place of incorporation to the UK.
Chancellor cuts universal credit taper rate
  • Article
  • 27 Oct 2021
Following criticism after the COVID-related uplift to universal credit was removed at the start of the month, Rishi Sunak used the Autumn Budget to announce changes to the taper rate and working allowance to increase support for recipients.
CGT reporting deadline for property sales extended
  • Article
  • 27 Oct 2021
Following calls from ICAEW the government has confirmed that many taxpayers will now have twice as much time to report and pay capital gains tax after selling property in the UK.
Use Budget to speed up tax modernisation, says ICAEW
  • Article
  • 05 Oct 2021
Writing to the Financial Secretary to the Treasury, ICAEW’s Tax Faculty has called for the Autumn Budget to accelerate work to build a modern tax system. While urging a “manageable pace” of transition, it cautions against implementing tax changes without consultation, such as the new Health and Social Care Levy.

Letters to the government

Ahead of each Budget ICAEW writes to the Chancellor of the Exchequer and the Financial Secretary to the Treasury. Read the letters in full.
ICAEW letter to the Chancellor ahead of Autumn Budget 2021
  • Representation
  • 18 Oct 2021
  • PDF (113kb)
ICAEW's CEO Michael Izza has written to the Chancellor arguing that the Autumn Budget 2021 is an opportunity to set the UK on the path to the fullest possible economic and environmental recovery – one which levels up all parts of the country, tackling entrenched regional inequalities to build strong and sustainable local economies.
ICAEW REP 97/21 Spending review 2021 - A financial platform for delivery
  • Representation
  • 05 Oct 2021
  • PDF (110kb)
A submission in advance of the Autumn 2021 Spending Review dated 30 September 2021 by the ICAEW Public Sector team in response to an invitation issued by HMT on 7 September 2021. The submission argues it is vital that the Spending Review establishes a firm financial platform for the government to deliver on its plans and that the three principles of Stable Funding, Fiscal Resilience, and Financial Capability should be at its heart.
ICAEW REP 95/21 Autumn Budget 2021 representations - Building a modern tax system
  • Representation
  • 04 Oct 2021
  • PDF (248kb)
A response dated 5 October 2021 to a consultation published by HMT on 30 September 2021, including ICAEW’s Tax Faculty customary pre-Budget letter to the Financial Secretary to the Treasury. It calls for the acceleration of work to build a modern tax system, while urging a “manageable pace” of transition, it cautions against implementing tax changes without consultation, such as the new Health and Social Care Levy.

Budget webinar

The Tax Faculty team and volunteers reflected on the Chancellor's announcements in this essential webinar recorded on 2 November. Watch the recording to hear the discussion and find out what the Autumn Budget 2021 could mean for you and your clients.

Watch now
Analysis from ICAEW's experts on the Autumn Budget 2021 and the comprehensive spending review published on 27 October 2021.