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Chancellor Rishi Sunak has set out a series of tax cuts and a boost to benefits to help Britons with the cost of living, as he warned of “challenging” months ahead due to the continuing COVID pandemic and rising inflation.
In his budget statement to the House of Commons, Mr Sunak promised plans to build “a stronger economy for the British people” after the coronavirus crisis.
He also acknowledged that households could face a squeeze as the UK economy continues to recover from the impact of COVID.
The chancellor revealed the Office for Budget Responsibility (OBR) expects the CPI rate of inflation to average 4% over the next year.
Budget calculator: Find out if you are better or worse off
Benefits boost as Sunak lowers Universal Credit taper rate
Promising to provide “help for working families with the cost of living”, Mr Sunak announced he would lower the taper rate of Universal Credit from 63% to 55%.
This means, for every extra £1 someone earns, their Universal Credit will be reduced by 55p rather than 63p.
Mr Sunak claimed the move, which will be implemented no later than 1 December, would see nearly two million families keep, on average, an extra £1,000 a year.
But critics said it only went part way to reducing the impact of the chancellor’s previous decision to cut a pandemic-induced £20 per week uplift to welfare payments.
In pre-budget announcements, the Treasury had already confirmed an increase to the national living wage to £9.50 an hour and the unfreezing of public sector pay.
Alcohol, fuel, flights, banks and business tax cuts
In a series of tax changes, Mr Sunak announced a new post-Brexit system of alcohol duties, including a lower rate of tax on draught beer and cider to boost pubs.
The new “more rational” system of levies will also see sparkling wines, such as prosecco, pay the same duty as still wines of equivalent strength.
With petrol prices having hit a record high across the UK, the chancellor cancelled a planned rise…
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Source : skynews
