Key Governmental Documents

  • Complete Autumn Budget and Spending Review 2021 – Link here
  • Autumn Budget and Spending Review 2021 regions and nations factsheets – Link here
  • Budget and Spending Review – October 2021: What you need to know – Link here

Business support

  • Following a review, the government will reduce the burden of business rates in England by over £7 billion over the next five years.
  • Up to 400,000 retail, hospitality and leisure properties will be eligible for a new, temporary £1.7 billion of business rates relief next year.
  • The government is also freezing the business rates multiplier in 2022-23, a tax cut worth £4.6 billion over the next five years. This will support all ratepayers, large and small, meaning bills are 3% lower than without the freeze.
  • From 2023, a new business rates relief will support investment in property improvements so that no business will face higher business rates bills for 12 months after making qualifying improvements to a property they occupy. This will enable businesses to make improvements to their premises that support net zero targets and enhance productivity.
  • The Recovery Loan Scheme will also be extended until 30 June 2022. Finance will be available up to a maximum of £2 million per business, supporting them to recover from the impact of the pandemic and to grow. The government guarantee will be reduced from 80% to 70%.

Fiscal measures

  • The government will also continue to explore the arguments for and against a UK-wide Online Sales Tax, the revenue from which would be used to reduce business rates for retailers with properties in England and with the block grants of the Devolved Administrations increased in the usual way.
  • The temporary £1 million level of the Annual Investment Allowance will be extended to 31 March 2023. This will support businesses investing between £200,000 and £1 million.
  • Company Car Tax (CCT) – The government confirms that the CCT rates already announced for 2022-23 will remain frozen until 2024-25.

VAT Margin Scheme – Northern Ireland

  • Second-hand margin scheme: interim arrangement for Northern Ireland - The government will legislate, should a relevant agreement be reached with the EU, to extend the VAT margin scheme to apply in Northern Ireland on a limited basis in respect of motor vehicles sourced from Great Britain for the period until the Second-hand Motor Vehicle Export Refund Scheme is implemented. As a result, motor vehicles first registered in the United Kingdom prior to 1 January 2021 will be available to sell under the VAT margin scheme in Northern Ireland during that time period.
    • The NFDA is aware of potential complications arising from how will be implemented. The policy states that vehicles first registered after 1/1/21 will disappointingly not be eligible for this retrospective relief. The NFDA has already reached out to HMRC and they have confirmed they are looking into the issue.
    • More information on the ‘Northern Ireland second-hand margin scheme interim arrangement’ Policy paper and recent alterations can be found here
  • Second-hand Motor Vehicle Export Refund Scheme – The government will legislate to be able to introduce a Second-Hand Motor Vehicle Export Refund Scheme. Under such a scheme, businesses that remove used motor vehicles from Great Britain for resale in Northern Ireland or the EU may be able to claim a refund of VAT following export. This will ensure that Northern Ireland motor vehicle dealers will remain in a comparable position as those applying the VAT margin scheme elsewhere in the UK.
    • More information on the ‘Second-hand Motor Vehicle Export Refund Scheme’ Policy paper can be found here

Vehicle Excise Duty (VED)

More information on the above topic Policy paper and recent alterations can be found here

  • Vehicle Excise Duty (VED) – The government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1 April 2022.
  • VED and Levy rates for heavy goods vehicles (HGVs) – To support the haulage sector and pandemic recovery efforts, the government will continue to freeze HGV VED for 2022-23 and suspend the HGV Levy for another 12 months from August 2022.

Infrastructure spending

  • £24 billion will be spent between 2020-21 and 2024-25 on strategic roads.
  • Over £8 billion to fill millions of potholes a year, resurface roads and repair bridges, as well as delivering over 50 vital local road upgrades.
  • From 2023, the government will introduce exemptions for eligible plant and machinery used in onsite renewable energy generation and storage, and a new 100% relief for eligible heat networks, to support the decarbonisation of buildings.

Employment

  • The government has also accepted the LPC’s recommendations for the other NMW rates to apply from April 2022 including:
    • Increasing the rate for 21 to 22 year olds by 9.8% from £8.36 to £9.18 per hour
    • Increasing the rate for 18 to 20 year olds by 4.1% from £6.56 to £6.83 per hour
    • Increasing the rate for 16 to 17 year olds by 4.1% from £4.62 to £4.81 per hour
    • Increasing the rate for apprentices by 11.9% from £4.30 to £4.81 per hour
  • Increasing apprenticeships funding to £2.7 billion by 2024-25.

Levelling up

  • Announces £49 million will be allocated to Northern Ireland via round one of the Levelling Up Fund, including upgrades to electric vehicle charging networks across the country.
  • £620 million of additional investment to support the transition to electric vehicles, on top of the £1.9 billion committed at SR20. This new funding will be spent on public chargepoints in residential areas and targeted plug-in vehicle grants.

Fuel

  • Fuel duty rates – The government will freeze fuel duty (at 57.95 pence per litre) UK-wide in 2022-23.


Sue Robinson, NFDA Chief Executive, comments on these announcements made by the Chancellor - in this NFDA Press Release.