What you need to know about the 'inflation' Budget – are you set to be far worse off financially next year?

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This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 29 October 2021

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

On Wednesday, Chancellor Rishi Sunak delivered another Budget alongside a Spending Review.

Much of what it contained had previously been revealed, including the forthcoming National Insurance hike, frozen income tax bands, triple lock suspension and a flurry of information over the weekend.

Georgie Frost, Simon Lambert and Lee Boyce run the rule on the latest Budget and updated figures on inflation and base rate predictions, alongside where the economy is at… and potentially heading.

The Chancellor didn't reinstate the Universal Credit uplift, instead lowering the taper while also rising the minimum wage to £9.50 an hour – will that help working families?

With a cost of living crisis that seems to be looming with petrol, food and energy prices rising, were there any measures to help combat this?

Could base rate really reach 3.5 per cent by 2023, and should homeowners be worried about potentially rising mortgage costs? And what about the threat of rising inflation, now predicted to be plus-4 per cent next year?

There was an update about cladding and changes to short haul flight taxes alongside a promise to fix a tax quirk that deprives low-paid workers of pension cash which is paid to better off colleagues – but not until 2025.

Transcript

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0:00.0	Welcome to This Is Money podcast. I'm Georgie Frost. Stand alongside me and editor Simon Lambert. Today is assistant editor Lee Boyce.
0:06.6	And coming up, a budget to begin the work of preparing for a new economy post-COVID.
0:12.9	But what sort of economy was the Chancellor referring to? One of greater investment, falling public debt, low taxes and higher pay for all, or a new economy of big
0:21.7	state with high taxes, poor growth and falling living standards. We got a lot about
0:26.0	Proseco, some bigging up of Brexit. There was something in there about red flags, I remember,
0:30.8	and Rishi tried to make a joke about beer barrel politics or some such thing. Was there anything
0:36.2	else, though? Don't forget you start to date with all the latest breaking money news, just go to this ismoney.com
0:41.0	dot UK or download the app. But first, it was any wonder that the Chancellor had anything left
0:46.5	to say so much had been leaked before the budget, not to mention that many of the big things
0:50.9	that will impact our finances we already knew about, national insurance hike, pensions, triple lock, suspension,
0:56.5	and the income tax bans, CGT, IHT levels, all frozen.
1:01.0	Before we get, though, to what was actually in there, what was left, what he did say,
1:05.8	an assessment, gentleman, if he would.
1:08.3	Rishy's performance and the budget generally, the tone, if you like.
1:13.5	Simon?
1:14.9	The tone?
1:16.6	Well, I mean, he did it in the middle of half term, which I thought was controversial
1:23.0	for any of us financial journalists with children.
1:26.2	And I know that we don't run the country
1:27.9	for financial journalists with children,
1:29.7	but it was annoying.
1:31.6	But I think it's maybe because he wanted to have it
	...

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