Budget 2021 latest news: Rishi Sunak could announce 30p hike on beer & NO VAT cut to household energy bills in speech

CHANCELLOR Rishi Sunak will unveil his second Budget of the year today, with economic plans that will take us through the winter.

Rumoured measures include a 30p hike on the price of a pint – meaning it will cost Brits more for a visit to their local boozer.

Mr Sunak will not axe VAT on household energy bills in tomorrow's Budget – despite families being clobbered with eye-watering rises.

The Chancellor is under pressure to scrap the 5% VAT charge on heating bills for six months from November 1 to help bills be more affordable during the winter.

Another confirmed measure will be to increase the minimum wage to £9.50 an hour this week, giving a pay rise for millions of Brits in his budget.

The Chancellor is also set to unfreeze sector pay on teachers, civil servants and police wages.

It is also expected that he will ditch a 2.84p budget hike in fuel duty — a win for The Sun's Keep It Down campaign.

Read our 2021 Budget blog below for the latest news and updates…

  • Louis Allwood

    Explained: 'The real living wage' campaign

    The "Real Living Wage" campaign, has allowed for workers to be paid more that what the minimum wage requires.

    The "Real Living Wage" is voluntarily paid by more than 7,000 UK businesses.

    Over 250,000 employees have received a pay rise through the campaign.

    Campaigners say the living wage should be £9.50 per hour, rising to £10.85 in London.

  • Louis Allwood

    Speaker calls for ministers to resign

    The speaker was left furious and has called for ministers to resign after details of the budget have been revealed before the chancellor addresses MP's Today.

    He said, "At one time ministers did the right thing if they briefed before a budget – they walked."

    Whilst Sir Lindsay was speaking there was shouts of 'resign' to which the speaker replied, "Yes absolutely, resign. It seems to me we've got ourselves in a position that if you've not got it out five days before it's not worth putting out.Advertisement

    "I've got to say, members are elected to this House to represent their constituents, those constituents quite rightly expect the MP to hear it first in order to be able to listen to what the budget is about, but also for the days following that to be able to hold them to account.

    "It's not acceptable and the government shouldn't try to run roughshod over this House, it will not happen."

  • Louis Allwood

    Boris Johnson wanted new model for wages

    The PM had previously stated that the government would not be going back to the 'old broken model' when it comes to wages.

    The PM told the Conservative Party conference in Manchester this month: “We are not going back to the same old broken model with low wages, low growth, low skills and low productivity.”

    And he urged businesses to put up wages.

    It currently looks positive for many Brits as tomorrows budget announcement will include a rise in the minimum wage.

  • Joseph Gamp

    Chancellor to unveil budget for 'new economy'

    Rishi Sunak will hail his Budget as ushering in a "new economy" after the coronavirus pandemic as he confirms billions of pounds of funding for the NHS and wage rises for millions of workers.

    The Chancellor is to bill his tax and spending plans on Wednesday as preparing an "economy fit for a new age of optimism" as the nation recovers from the hardship of Covid-19.

    But his speech, along with accompanying forecasts from the Office for Budget Responsibility, should shed light on the impact on the economy of the supply chain crisis, worker shortages and rising prices.

    After 18 months of high spending, Mr Sunak will have the opportunity to restore his conservative credentials by setting out a plan for bringing borrowing under control.

    But while he will confirm a rise of the "national living wage" to £9.50 from April and the end of the pay freeze he imposed on public sector workers, the devil will be in the detail.

  • Joseph Gamp

    Money earmarked to cut down crime and illegal immigration

    The Chancellor will put £355million into the pot earmarked to cut crime and help rape victims.

    Another £50million will be used to improve street lighting and CCTV in neighbourhoods. 

    Cash to digitise the UK border to cut waiting times at airports like Heathrow and improve security.

    A fleet of "cutters" will also be announced to patrol British waters to crack down on illegal migration.

  • Joseph Gamp

    NHS backlog blitz with plans to launch 100 local hubs

    A whopping £5.9billion to blitz the NHS Covid backlog by launching 100 local hubs for people to get MRI, ultrasound and CT scans.

    Comes on top of the £36billion announced last month with national insurance rises.

    And a huge £5bn will fund research and development in healthcare, including "ground-breaking projects to tackle" future pandemic threats. 

  • Joseph Gamp

    'Local transport revolution' in the North and Midlands

    Rishi Sunak has announced an eye-catching "local transport revolution" to improve buses, trams and trains in the Midlands and the North.

    A chunky £5.7bn will be pumped directly into cities for transport improvements, while £1.2bn will be earmarked to simplify and slash fares. 

    But only £1.5bn is new money, with the rest already announced previously.

  • Joseph Gamp

    Booze tax cut

    Rishi Sunak is set to trim taxes off English sparkling wine and beers in a Brexit boost for our distilleries. As much as 83p could be knocked off a bottle of plonk.

    More than 100 MPs have also demanded the Chancellor slash beer duty to help save Britain's boozers.

    Drinkers currently have to pay around £1 in tax for every pint of beer in a pub.

  • Joseph Gamp

    Minister refuses to commit to above-inflation pay rise

    Ministers have refused to guarantee that millions of public sector workers will get a real-terms rise in wages despite Chancellor Rishi Sunak promising an end to the pay freeze.

    The Chancellor has confirmed he will scrap the UK Government's year-long public sector pay freeze in his Budget on Wednesday, paving the way for a possible wage increase next year for those such as teachers, nurses, police and armed forces personnel.

    But there is no guarantee the increase will be higher than the rising cost of living, meaning workers could still feel worse off.

    According to the latest available data from the Office for National Statistics, there were 5.68 million public sector workers registered in June.

    Mr Sunak has not set out how much wages will be boosted by, with the rises set to be announced next year following recommendations from independent pay review bodies.

    And business minister Paul Scully refused to guarantee the increases would be above the level of inflation.

    "That will be determined by the pay review bodies. The Chancellor is keen to give people a rise," he told Sky News.

  • Joseph Gamp

    Queen expecting phone call from Rishi Sunak this evening

    Following on from her virtual audiences with Gunn Kim, ambassador from the Republic of Korea, and the Swiss ambassador Markus Leitner today, the Queen is expecting a call from the Chancellor on this evening.

    Rishi Sunak will speak to the Queen on the eve of his Budget, a tradition dating back some years.

    The monarch is also expected to carry out light engagements in the coming days.

  • Joseph Gamp

    Chancellor urged to help Scots facing 'cost of living crisis'

    Scots are facing a "real cost of living crisis", Finance Secretary Kate Forbes has said, as she urged the Chancellor to reinstate the £20 a week recently removed from Universal Credit.

    Ms Forbes made the plea ahead of Rishi Sunak delivering his second Budget of the year to the Commons on Wednesday.

    In a letter to the Chancellor, she called on him to use the keynote address to "provide certainty to the wider public sector, boost the economy and support our most vulnerable at this challenging time".

    Ms Forbes, who will set out the Scottish Government's draft budget for next year in December, stressed that ministers at Holyrood were "strongly opposed to any return to austerity".

    The Finance Secretary appealed to the Chancellor to re-think the Government's recent decision to end the £20 a week uplift in Universal Credit introduced during the coronavirus pandemic.

    She told Mr Sunak: "A real cost of living crisis is emerging as a result of this cut, combined with the escalating energy costs and upcoming rise in National Insurance contributions.

    "The Universal Credit cut alone will push an extra 60,000 people in Scotland, including 20,000 children, into poverty and hundreds of thousands more into hardship, whilst also reducing social security expenditure in Scotland by £461 million by 2023-24."

  • Joseph Gamp

    Who ISN'T entitled to minimum wage?

    You won't be entitled to minimum wage if you are:

    • Self-employed
    • Under 16
    • Living and working with a family and not paying for accommodation or meals
    • In the armed forces
    • Trainees and interns – although they have a different minimum wage rate in most cases
    • Some farm workers
    • Volunteers or those on work experience

    Many workers in retail and hospitality will often be paid minimum wage rates – although some companies offer more than this.

    For example, Sainsbury's and Morrisons are both offering above minimum wage as the supermarkets look to hire thousands of Christmas temps.

    Who gets the minimum wage boost?

    Roughly two million Brits are expected to benefit from the pay rise, which will come into force from April 1 next year.

    But who exactly gets the extra cash, how much more a year will they get? We explain all you need to know.

    Workers who are on the minimum wage rate will get the extra money.

    It is the very lowest rate of pay you should be getting paid – but there are exceptions.

    Explained: What time will Wednesday's budget take place?

    Tomorrow's Budget will be delivered in the House of Commons and scheduled to take place after Prime Minister’s Questions (PMQs).

    PMQs usually lasts around half an hour so the Budget typically starts just after 12.30pm.

    It may be later if PMQs overruns and time is often given to allow MPs to enter the House of Commons chambers.

    Quadruple whammy

    The National Living Wage sets the minimum hourly rate employers can pay to all workers aged over 22.

    There is a separate National Minimum Wage for 21-22 year olds, which will also go up from £8.36 to £9.18.

    Apprentices will get a raise to £4.81 from £4.30, but there has been no announcement on the pay of under-18s or 18-20 year olds.

    Businesses are already facing a quadruple whammy from inflation, the supply chain crisis, record vacancies, and rising energy prices.

    A recent poll revealed 99 per cent of the hospitality sector were experiencing stock issues and shortages.

    • Joseph Gamp

      Pub chain boss says rises will hit customers hard

      The boss of one chain of boozers warned the move will inevitably hit punters in the pocket.

      City Pub Group chairman Clive Watson said landlords can't soak up extra overheads as the industry is "coming off life support" after Covid.

      He said: "We cannot absorb all these increased costs whether it is the energy costs whether it is food inflation, whether it is labour costs.

      "So the only way forward for us is to put the price of beer and food up in our pubs.

      "No-one wants to do that but I reckon the price of beer would probably have to go up 25p-30p a pint to take account of all these increased costs."

    • Joseph Gamp

      Brits face 30p price hike on a pint of beer

      THIRSTY Brits face paying 30p more for a pint after Rishi Sunak hikes wages for the lowest paid in tomorrow's budget, business chiefs have warned.

      Landlords say they'll have to put up prices because they're struggling with spiralling overheads that will be compounded by the salary hike.

      The Chancellor is poised to announce that the national living wage is going up by 6.6% from £8.91 to £9.50 an hour.

      He says the move will add on average around £1,000 before tax to the annual pay of a full-time worker.

      Mr Sunak is also set to end the public sector pay freeze and hand millions of workers a raise.

      Business minister Paul Scully today insisted the raises are necessary and they won't "build a recovery based on the backs of the lowest paid in our society".

      He said the Government wants to eradicate low pay by making sure the minimum wage becomes two thirds of the average salary by 2024.

    • Joseph Gamp

      Families battling against rising cost of living

      Families are facing an uphill struggle against rising fuel, food, travel and pub prices, which is also helping to push up the rate of inflation.

      It means families could be up to £1,800 worse of by the end of the year.

      Brits are bracing themselves against a painful winter this year as the energy crisis continues to bite finances.

      It's down to soaring global gas prices, which are 250% up since January this year.

      The spike has been driven by increased demand after lockdown, low supply from Russia, high demand in Asia, a fire affecting imported French electricity, and a lack of wind for wind turbines.

    • Joseph Gamp

      No VAT cut to household energy bills 

      RISHI Sunak will not axe VAT on household energy bills in tomorrow's Budget – despite families being clobbered with eye-watering rises.

      The chancellor is under pressure to scrap the 5% VAT charge on heating bills for six months from November 1 to help bills be more affordable during the winter.

      He was urged this weekend by shadow chancellor Rachel Reeves to "give working people a helping hand" by rolling out a cut in the Budget.

      It would save the average household £38 a year at a time when energy bills are reaching record-breaking highs.

      Customers are being battered with a £139 increase to their bills after the price cap rose earlier this month.

      That's on top of the millions of Brits who face a crushing £400 hike in gas and electricity bills this winter should their supplier go bust.

    • Joseph Gamp

      Downing Street refuses to confirm public sector pay-rise

      Downing Street was unable to say this afternoon whether public sector workers will get a real-terms rise in wages after Chancellor Rishi Sunak promised to end their pay freeze.

      The Prime Minister's official spokesman said: "The process is for independent pay review bodies to look at… for them to then come forward to make recommendations to departments on a sector-by-sector basis. I'm not going to pre-judge that process."

      Asked if departments will get more funding to cover pay rises, he said: "How departments are funded will be a matter for the SR (spending review) and the Chancellor to set out."

    • Joseph Gamp

      Fuel duty set to be frozen in Wednesday's budget

      Chancellor Rishi Sunak will ditch a 2.84p budget hike in fuel duty due to soaring petrol prices.

      The average forecourt price per litre hit a record 142.94p on Sunday, with soaring oil prices and retailers blamed for hiking prices.

      MPs say they have been privately assured by the Treasury that the scheduled 4.9 per cent rise for 2022 will not go ahead.

      In a major victory for The Sun’s “Keep It Down” Campaign, the duty will be frozen for the second time this year.

    • Joseph Gamp

      NHS backlog 'will take longer to clear without social care funds'

      The NHS backlog will take longer to clear without extra funding for social care in this week's Budget, bodies representing councils and healthcare groups have warned.

      The social care sector must benefit from significant national funding to tackle immediate pressures, according to the Local Government Association (LGA) and the NHS Confederation.

      The two organisations have joined forces to urge Chancellor Rishi Sunak to allocate money to help prevent hospital admissions and enable people to be discharged safely into their homes without delay.

      Care bodies have been warning for weeks that staffing pressures are leading to people who are medically fit to be discharged home remaining in hospital because there are no arrangements for their care for when they return.

      The LGA and NHS Confederation say the spending review must address "severe and mounting pressures" that are leading to growing unmet need, increased strain on the workforce and unpaid carers, and greater pressure on an unstable market.

    • Joseph Gamp

      Minister defends budget briefings (continued…)

      Mr Clarke's remarks came after a fresh warning from Speaker Sir Lindsay Hoyle, who granted a second urgent question in two days to force ministers to appear in the Commons to answer questions on the forthcoming financial statement.

      Sir Lindsay highlighted that the ministerial code states important announcements of Government policy should be made to Parliament first when it is in session.

      He told MPs: "I was disappointed to see more stories in the media today with apparently very well-briefed information about what will be in tomorrow's Budget."

      Sir Lindsay accused the Government of treating the Commons in a "discourteous manner", adding: "This House will not be taken for granted, it's not right for everybody to be briefed, it's not more important to go on the news in the morning, it's more important to come here."

      But Mr Clarke, while responding to questions from Labour, said: "The ability of Parliament to scrutinise the Government, including the Budget, is clearly crucial, which is why we've got five days of parliamentary debate ahead of us this week and next, and why the Chancellor will be appearing in addition in front of two select committees of this House next week."

      He summarised "some of the headline announcements we've made on the Budget already", adding: "With the caveat that the bulk of the detail of the Budget of course will be delivered by the Chancellor himself at this despatch box tomorrow.

      "Importantly that includes all market-sensitive information. Part of the Government's objective in trailing specific aspects of the Budget in advance is to help communicate to the public what we're doing with their hard-earned money because we believe there is merit in clear and accurate information."

    • Joseph Gamp

      Minister defends budget briefings amid criticism from Commons Speaker

      A Treasury minister has defended pre-Budget policy briefings after the Commons Speaker accused the Government of "discourteous" behaviour towards MPs.

      Conservative frontbencher Simon Clarke said the "bulk of the detail" of the Budget had yet to be revealed despite numerous policies already being trailed, including extra funding for the NHS and an end to the public sector pay freeze.

      Mr Clarke added part of the Government's objective in trailing Budget details is to help "communicate to the public what we're doing with their hard-earned money".

      Chancellor Rishi Sunak is due to deliver the Budget tomorrow.

    • Louis Allwood

      Rishi Sunak has made it clear what he sets out to achieve

      Rishi Sunak has made it very clear in his most recent tweet that his aim for this budget is to make ‘A stronger economy for the British people.’

      Throughout the past year the economy has been trying to recover from the damages caused during the pandemic.

      It seems Rishi is planning to rebuild the economy and come back stronger.

      Source: Read Full Article