Rishi Sunak today delivered his much-anticipated – and highly-briefed – financial statement which combined a £150bn bonanza in government spending with more money for those on Universal Credit. With much fanfare, the Chancellor of the Exchequer told the House of Commons that the nation is entering a new “age of optimism”. But he also warned of “challenging” times ahead due to the coronavirus crisis and the ongoing supply chain crisis.
Here are five key takeaways from the Autumn Budget 2021:
Inflation will average more than 4 per cent for the next year. However, the Office for Budget Responsibility (OBR) says the country will recover faster than was originally forecast. With the economy now expected to grow by 6 per cent in 2022 (revised up from 4 per cent), the Chancellor expects the economy to return to pre-pandemic levels by the end of this year. Sunak also announced a new Charter for Budget Responsibility. “In normal times,” he said, the state “should only borrow to invest in future growth and prosperity”.