This bulletin provides a summary of BEIS policies that are included in the government’s Spending Review.
Autumn Budget and Spending Review 2021
The government has published the Spending Review, delivering on key commitments to reach net zero carbon emissions by 2050, support the jobs and industries of the future and invest in a high-wage, high-skill economy.
BEIS will be at the forefront of delivering these plans, overseeing pay rises for millions working families, creating thousands of jobs and securing the UK’s status as a global science superpower.
The Budget complements the Net Zero Strategy which BEIS published last week and delivers the investment and support which UK firms need to plan for the future.
Backing business and workers
Measures include:
- a National Living Wage increase up to £9.50 an hour to be introduced from April 2022
- the extension of the Recovery Loan Scheme by 6 month
- £1.6 billion of finance for new and growing businesses, to be delivered via the government’s British Business Bank over the next 3 years
- business rates exemption for green property improvements, including solar panels and heat pumps, to help businesses invest to make buildings more energy efficient
- support for the hospitality, retail and leisure sectors, which have been hit hard by the pandemic, with a 50% business rates discount for these sectors capped at a maximum of £110,000. This also applies to high street personal care businesses like hairdressers
- further support for the hospitality sector, especially community pubs, with a simplified alcohol duty that cuts tax for less strong alcoholic drinks such as beers, fruit ciders and weaker wines, a lower rate of duty for draught beer or cider, and the cancellation of the planned increase in duty for whisky, beer, wine and cider
- support for small producers of alcoholic drinks, with the introduction of a new small producer relief, building on the success of Small Brewers Relief, for cidermakers and other producers of lower ABV drinks including many English winemakers. The government will also end premium tax rates on sparkling wine and substantially reduce duty on rosé.
- the launch of the Help to Grow: Digital scheme in December, providing small businesses with free, impartial online support on how to use digital technology to boost their performance. It will also offer small businesses access to discounts worth up to £5,000 towards the costs of buying approved software. Businesses can now register their interest for the scheme
- BEIS will launch a consultation on creating a re-domiciliation regime to bring the UK into line with peers such as New Zealand and Canada, strengthening our position as a global business hub.
