Following the Autumn 2021 Spending Review and Budget announcement on 27 October 2021, we’ve rounded up some of the key details relevant to the Third Sector, and further resources for understanding the UK Government’s plans for spending and taxes.
How will the Third Sector and its service users be affected?
- The National Living Wage will be increased to £9.50 an hour from April next year.
- Changes to Universal Credit include reducing the taper rate (how much benefit award is lost if claimants earn money) by 8% to 55% and increasing the amount some people can earn before their award is reduced. The £20 per week uplift received during the pandemic ended at the beginning of October.
- There will be no changes to existing business rates relief for charities following the fundamental review of business rates (full report published alongside the Budget)
- Tax relief will continue for theatres, museums, galleries & orchestras
Funding Announcements and UKSPF
While current European Union Structural Funds are invested until 2023, the UK Government have stated the previously announced UK Shared Prosperity Fund (UKSPF) will at a minimum match the size of EU Funds in all nations and current EU funding levels in Cornwall. £2.6bn has been allocated to the UKSPF over the next 3 years, with a budget of £1.5bn allocated for 2024-2025.
Further funding announcements include:
- As part of UKSPF, the ‘Multiply’ programme will invest in improving numeracy skills, with the North East, West Midlands and Yorkshire and the Humber earmarked for support, which currently have the highest proportion of adults with low numeracy skills.
- £560m investment in youth services including the Youth Investment Fund.
- 21 projects have been announced for the Community Ownership Fund, supporting ownership of local community assets.
- The first round of the Levelling Up Fund has been announced, investing in local infrastructure and cultural or heritage assets.
- The first round of the Community Renewal Fund allocation has also been published, to support places in preparation for the introduction of the UKSPF.
- Full ‘Levelling Up’ white paper is due to be published later this year.
Further Resources and Analysis
The detailed Autumn Budget and Spending Review documents can be found here.
For further analysis of the announcement, the Institute of Fiscal Studies presents an in-depth review of all aspects of the budget, playback of their live analysis event can also be watched here.
The Resolution Foundation’s response includes analysis of the real term effects that the changes to tax policies, minimum wage, and Universal Credit will have on household incomes.
The Institute for Government sets out to answer five questions from the Budget including learning more about the ‘levelling up’ agenda and if the Government will deliver on net zero.
Finally, Pioneers Post have rounded up some of the UK’s social enterprise and social impact leader’s initial reactions to the announcements in this article
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