Skip to main content

Winter Budget – Summary of Announcements

The Economy

  • Inflation is at 3.1%, and is expected to average over 4% over the next year.
  • Pressures caused by supply chain issues and the energy crisis will take months to heal
  • The Economy is set to return to its pre-COVID level at the turn of the year – an improvement on OBR forecasts revealed in March
  • In July last year, at the height of the pandemic, unemployment was expected to peak at 12% but the OBR now expect it to peak at 5.2%

Business Support

  • New 50% business rates discount for businesses in the retail, hospitality and leisure sectors, including pubs, music venues, cinemas, restaurants, hotels, theatres, and gyms
  • This will mean any eligible business can claim a discount up to a maximum of £110,000 – a tax cut worth almost £1.7bn
  • Together with small business rates relief, this means more than 90% of all businesses in these sectors will see a discount of at least 50%

Minimum Wage

  • National living wage to increase next year by 6.6% to £9.50 an hour. For a full time worker, that’s a pay rise worth over £1,000
  • This move will help more than two million of the lowest-paid workers, according to the Chancellor


  • The Chancellor says his goal is to reduce taxes and the universal credit taper, which reduces financial support as people work more hours, is in his sights
  • The rate is currently 63%, so for every extra £1 someone earns, their universal credit is reduced by 63p. Mr Sunak announces plans to cut this by 8 percentage points (from 63% to 55%). This will come into effect “within weeks”
  • Work allowances being increased by £500 – combined with the change to the taper, this is a tax cut worth more than £2bn, he says. Nearly two million families will keep, on average, an extra £1,000 a year


  • £46bn investment in railways, with an integrated rail plan to be published soon
  • £5.7bn for London-style transport settlements in Greater Manchester, Liverpool City Region, Tees Valley, South Yorkshire, West Yorkshire, West Midlands, West of England
  • £21bn for roads as part of a larger investment in transport
  • £2.6bn for upgrades of over 50 local roads
  • More than £5bn for road maintenance – enough to fill one million more potholes a year
  • More than £5bn for buses, cycling and walking improvements
  • HGV levy (previously suspended until August) will now be suspended until 2023
  • Vehicle excise duty for heavy goods vehicles to be frozen
  • Funding to improve lorry park facilities

Debt and Borrowing

  • Underlying debt is forecast to be 85.2% of GDP this year
  • It will reach 85.4% in 2022-23, before peaking at 85.7% in 2023-24
  • Total departmental spending over this parliament will increase by £150bn, growing by 3.8% a year in real terms


  • Spending on healthcare to increase by £44bn to over £177bn by the end of this parliament
  • Extra revenue from health and social care levy will go towards NHS and social care as promised
  • Health budget will be the largest since 2010, with record investment in research and development, better screening, 40 new hospitals and 70 hospital upgrades


  • The budget funds an ambition to recruit 20,000 new police officers
  • Extra £2.2bn for courts, prisons and probation services, including £500m to reduce the backlog in courts
  • Programmes to tackle neighbourhood crime, reoffending, county lines crimes, violence against women and girls, victims’ services, and improved response to rape allegations
  • £3.8bn for the “largest prison-building programme in a generation”


  • £11.5bn to build up to 180,000 affordable home – 20% more than the previous programme
  • £1.8bn to bring 1,500 hectares of brownfield land into use
  • £640m a year to help those who are rough sleepers and homeless

Child Services

  • £300m for parenting programmes for families, tailored services to help with perinatal mental health
  • £150m to support training and development for early years workforce
  • £200m for Supporting Families programme which helps families with varied needs
  • Over £200m to continue the holiday activity and food programme
  • £560m for youth services – enough to fund up to 300 youth clubs in England
  • More than £200m to build or transform up to 8,000 community football pitches in the UK
  • £2bn new funding to help schools and colleges, bringing total support (some already announced) to almost £5bn
  • Restoring per pupil funding to 2010 levels in real terms, equivalent to a cash increase for every pupil of more than £1,500
  • 30,000 new school places for children with special needs and disabilities

Alcohol Duty

  • An overhaul of alcohol duty, cutting the number of main duty rates from 15 to six – the stronger the drink, the higher the rate
  • Small producer relief will extend the principle of small brewers’ relief to small cider makers and others making alcoholic drinks of less than 8.5% ABV
  • Sparkling wines will pay the same duty as still wines of equivalent strength, rather than the 28% they currently pay. Duty will also be cut for fruit cider

Fuel Duty

  • Planned rise in fuel duty will be cancelled, meaning that – after 12 consecutive years of frozen rates, the average car driver will save a total of £1,900

Air Travel

  • Flights between airports in England, Scotland, Wales, and Northern Ireland will be subject to a new lower rate of air passenger duty from April 2023
  • Nine million people will see air passenger duty costs cut in half and the move will boost regional airports
  • Financial support for English airport extended for a further six months
  • An ultra long haul band will be added to air passenger duty, covering flights of over 5,500 miles, with an economy rate of £91. Mr Sunak says less than 5% of passengers will pay more but those who fly furthest will pay the most