GDP Growth has been revised up and is now forecast to be 6.5% this year, up from 4.0% forecast in March’s Economic and fiscal outlook. This will be followed by growth of 6% in 2022 2.1% in 2023 1.3% in 2024 and 1.6% in 2025
Underlying debt is forecast to be 85.2% of GDP this year, 85.4% of GDP in 2023 and 85.7% in 2024.
Inflation will average 4% during 2022
Tourism Related Budget Announcements - APD
The government is increasing the number of international distance bands from two to three, with the new distance bands set at 0-2,000 miles; 2,000-5,500 miles and 5,500 miles plus. The rates will be £13; £87 and £91 respectively for economy passengers.
From April 2023 there will be 50% cut in air passenger duty for domestic flights (to £6.50 per leg) – this will make the APD on a domestic return flight the same as travelling to Europe.
APD for flights over 5,500 miles will be increased from April 2023 with an economy rate of £91
A new, simpler alcohol duty system will be introduce with the number of duty rates cut to six
Alcohol will be taxed in a progressive manner, with low strength products attracting low rates of duty and high strength products attracting higher levels of duty
There will be a 5% cut to duty on draught beer and cider served from draught containers over 40 litres which will help pubs and bars
There will be a new small producer relief for cidermakers and other producers of lower ABV drinks (below 8.5%).
The Government is reducing the taper rate in Universal Credit from 63% to 55%, as well as increasing work allowances in UC by £500 a year. This will make it more financially attractive for people on Universal Credit to find work and should help with staff shortages in hospitality and tourism businesses.
Holidays For Disadvantaged Children
£200 million per year has been committed to continuing the holiday activities and food programme for disadvantaged children in England,
The Government is extending the temporary £1 million level of the Annual Investment Allowance to 31 March 2023.
The Recovery Loan Scheme will also be extended until 30 June 2022 with finance available up to a maximum of £2 million per business. However, the government guarantee will be reduced from 80% to 70%
The Government has confirmed £1.6 billion for the British Business Bank’s Regional Funds to provide debt and equity finance to SMEs, and to expand the Regional Angels programme
investment for the Shared Rural Network, to deliver high-quality 4G mobile coverage to 95% of the UK