Budget 2021: Here is what Chancellor Rishi Sunak announced

Rishi Sunak delivered his much anticipated Budget today. David Prosser explains what it means for you.

Rishi Sunak
Chancellor Rishi Sunak warned inflation will average 4% next year.
(Image credit: ©Photo by Dan Kitwood/Getty Images)

Anyone planning to raise a glass to Chancellor Rishi Sunak’s Budget should fill it with draught beer or sparkling wine rather than a strong red or a high-strength cider. His rationalisation of alcohol duties will reduce tax on the former – taking 3p off the cost of a pint, for example – but make higher-alcohol drinks more expensive.

It’s a common theme in this year’s Budget. The Chancellor is cutting air passenger duty in half, to just £6.50 on domestic flights, but introducing higher rates on longer trips, including a new £91 duty on ultra-long-haul flights. On fuel duties, he is freezing tax for the 12th year running, but actively spending money on electric vehicles, with £620m for public charging points.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.