Budget 2021: key points at a glance

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Sunak’s opening remarks

© Photograph: Anadolu Agency/Getty Images
Rishi Sunak is delivering his autumn budget statement.

Rishi Sunak says his budget delivers a stronger economy for the British people: stronger growth, public finances and employment. The chancellor says he will give people the support they need with the cost of living and levelling up.

He says the budget does not draw a line under Covid, but does begin the work of building an economy post-pandemic.

“Let there be no doubt: our plan is working,” he says.

Rowena Mason, deputy political editor: Sunak has adopted the prime minister’s claims that the UK needs to move to a “new economic model” of higher wages and productivity. He is sounding decidedly like a Johnsonian optimist, trumpeting better than expected economic growth, rather focusing on fiscal discipline or balancing the books. He does, however, inject a note of caution about the threat of inflation, while insisting it is a global problem.

Inflation

• The chancellor says inflationary pressures are affecting the UK economy, with the Office for Budget Responsibility (OBR) forecasting that inflation will average 4% next year.

• He says the pressures are global in nature and are “impossible for us to address alone”. However the government will act to support households, he says.

Rowena Mason, deputy political editor: Sunak says he has written to the Bank of England re-emphasising its remit on maintaining low and stable inflation, suggesting he would not be opposed if the independent body decides to raise interest rates.

Growth

• The chancellor says forecasts from the Office for Budget Responsibility (OBR) show the economy will grow by 6.5% this year.

• Sunak says it will take until the start of 2022 for the economy to return to its pre-pandemic size.

• GDP will grow by 6% next year, 2.1% in 2023, 1.3% in 2024, 1.6% in 2025.

• In March, the OBR had forecast growth of 4% this year, following a plunge of 9.9% in 2020 – the worst recession for 300 years.

• The OBR’s estimate for long-term scarring for the economy has been revised down from 3% to 2%.

• Unemployment is forecast to peak at 5.2%, down from a forecast for about 12% forecast last year.