Autumn Budget and Spending Review 2021

Treasury Committee Closed Inquiry
Opened: 22 Oct 2021 Closed: 27 Apr 2022 Parliament page
An inquiry to scrutinise the Government’s 2021 Autumn Budget announcements, its Spending Review, and the Economic and Fiscal Outlook produced by the Office for Budget Responsibility.
5 Recommendations
19 Conclusions
1 Report
2 Letters
4 Events
Activity timeline 8 events
2 Mar
2022
Report published
27 Jan
2022
Report published
23 Nov
2021
Correspondence
19 Nov
2021
Correspondence
18 Nov
2021
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
8 Nov
2021
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
1 Nov
2021
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
1 Nov
2021
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
Title HC No. Published Items Response
Tenth Report - Autumn Budget and Spending Review 2021 HC 825 27 Jan 2022 24 Responded
Recommendations & Conclusions
24 results
1 Conclusion
Tenth Report - Autumn Budget and S…
The Chancellor’s fiscal rules are reasonable in the context of the pandemic and its effects.
The Chancellor’s fiscal rules are reasonable in the context of the pandemic and its effects. The Chancellor has set his primary fiscal rule to target the overall stock of Public Sector Net Debt, with a secondary target to run a … Read more
Government Response
I thank the Committee for their conclusions on the government’s fiscal strategy. The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for … Read more
HM Treasury
View details
2 Conclusion
Tenth Report - Autumn Budget and S…
According to the Office for Budget Responsibility, the Chancellor has between a 55 and 60...
According to the Office for Budget Responsibility, the Chancellor has between a 55 and 60 per cent chance of meeting his fiscal rules. He has given himself less room to meet his rules than his predecessors. The headroom may prove … Read more
Government Response
I thank the Committee for their conclusions on the government’s fiscal strategy. The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for … Read more
HM Treasury
View details
3 Conclusion
Tenth Report - Autumn Budget and S…
By setting himself rolling targets the Chancellor has given himself the flexibility to respond to...
By setting himself rolling targets the Chancellor has given himself the flexibility to respond to any deteriorations in the forecast at future fiscal events. However, the Chancellor should not use a rolling target as a mechanism to allow himself to … Read more
Government Response
I thank the Committee for their conclusions on the government’s fiscal strategy. The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for … Read more
HM Treasury
View details
4 Conclusion
Tenth Report - Autumn Budget and S…
It is disappointing that the Government has pushed back its target to spend £22 billion...
It is disappointing that the Government has pushed back its target to spend £22 billion per year on Research and Development by two years from 2024–25 to 2026–
Government Response
I note the Committee’s conclusions on R&D spending ambitions. The Spending Review settlement announced an increase in public R&D investment to record levels, providing £20 billion across the UK by … Read more
HM Treasury
View details
27 Recommendation
Tenth Report - Autumn Budget and S…
However, the new commitment would still represent a significant increase and bring public UK Research...
However, the new commitment would still represent a significant increase and bring public UK Research and Development spending above the OECD average, and above Germany, France and the US. While the target for R&D spending remains historically high, there is … Read more
HM Treasury
View details
5 Conclusion
Tenth Report - Autumn Budget and S…
Due to the increase in Government debt, the proportion of gilts that are index linked,...
Due to the increase in Government debt, the proportion of gilts that are index linked, as well as the proportion of UK Government debt that has been financed through the issuance of Bank of England reserves, the public finances are … Read more
Government Response
I thank the Committee for their conclusions on the government’s fiscal strategy. The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for … Read more
HM Treasury
View details
6 Conclusion
Tenth Report - Autumn Budget and S…
The OBR states that its central forecast for the path of inflation could be too...
The OBR states that its central forecast for the path of inflation could be too low. Since the Budget, inflation has already significantly exceeded the level forecast by the OBR in October. The Bank of England raised interest rates to … Read more
Government Response
I thank the Committee for their conclusions on the government’s fiscal strategy. The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for … Read more
HM Treasury
View details
7 Conclusion
Tenth Report - Autumn Budget and S…
The OBR forecast states that the policy mix chosen by the Chancellor at this Budget...
The OBR forecast states that the policy mix chosen by the Chancellor at this Budget will act as a boost to inflation, and it identified in particular the increase 44 Autumn Budget and Spending Review 2021 in employer National Insurance … Read more
Government Response
I thank the Committee for their conclusions on the government’s fiscal strategy. The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for … Read more
HM Treasury
View details
8 Conclusion
Tenth Report - Autumn Budget and S…
While some departments which had been significantly disrupted by the pandemic, such as the Department...
While some departments which had been significantly disrupted by the pandemic, such as the Department of Health and Social Care and the Department for Transport, received large increases, the Department for Education, which was also affected by the pandemic, did … Read more
Government Response
I note the Committee’s conclusions on the Spending Review. We are exceeding our commitments to replace EU funding in full, with no reduction through the UK Shared Prosperity Fund (UKSPF). … Read more
HM Treasury
View details
9 Conclusion
Tenth Report - Autumn Budget and S…
It was against the backdrop of the Covid pandemic that the Chancellor announced a large...
It was against the backdrop of the Covid pandemic that the Chancellor announced a large increase in departmental spending at this Spending Review, with real-terms increases for all departments. However, the Chancellor also declared his intention to cut taxes later … Read more
Government Response
I thank the Committee for their conclusions on the government’s fiscal strategy. The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for … Read more
HM Treasury
View details
10 Conclusion
Tenth Report - Autumn Budget and S…
It is understandable that total departmental spending is rising at present, and that the UK’s...
It is understandable that total departmental spending is rising at present, and that the UK’s tax burden will rise to levels not seen during peace time, given that the country is still in the midst of a global pandemic, which … Read more
Government Response
I thank the Committee for their conclusions on the government’s fiscal strategy. The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for … Read more
HM Treasury
View details
11 Conclusion
Tenth Report - Autumn Budget and S…
The Spending Review described how levelling up was being incorporated into many aspects of government...
The Spending Review described how levelling up was being incorporated into many aspects of government policy. We await more specific detail on how levelling up will be measured and achieved. Rebadging existing programmes may not have the impact the Government … Read more
Government Response
I note the Committee’s conclusions on the Spending Review. We are exceeding our commitments to replace EU funding in full, with no reduction through the UK Shared Prosperity Fund (UKSPF). … Read more
HM Treasury
View details
12 Conclusion
Tenth Report - Autumn Budget and S…
The Government stated that the UK Shared Prosperity Fund will be the successor to the...
The Government stated that the UK Shared Prosperity Fund will be the successor to the EU Structural Investment Funds. However, the Government is only providing to this new fund 60 per cent of the money provided by the EU fund. … Read more
Government Response
I note the Committee’s conclusions on the Spending Review. We are exceeding our commitments to replace EU funding in full, with no reduction through the UK Shared Prosperity Fund (UKSPF). … Read more
HM Treasury
View details
13 Conclusion
Tenth Report - Autumn Budget and S…
Significant elements of the Government’s levelling up agenda will be delivered through the Department for...
Significant elements of the Government’s levelling up agenda will be delivered through the Department for Levelling Up, Housing and Communities (DLUHC). However, once the increases in social care funding are excluded, the spending power for this department’s activities are being … Read more
Government Response
I note the Committee’s conclusions on the Spending Review. We are exceeding our commitments to replace EU funding in full, with no reduction through the UK Shared Prosperity Fund (UKSPF). … Read more
HM Treasury
View details
14 Conclusion
Tenth Report - Autumn Budget and S…
Compared to the existing adult social care framework in England of thresholds and the absence...
Compared to the existing adult social care framework in England of thresholds and the absence of any lifetime spending caps, the Government’s new policy proposals are more generous. All individuals will now have a lifetime cap on contributions where previously … Read more
Government Response
I thank the Committee for welcoming our social care charging reforms. The new £86,000 cap will end people’s worries that they may face unpredictable care costs, with roughly two thirds … Read more
HM Treasury
View details
15 Conclusion
Tenth Report - Autumn Budget and S…
Compared to the Dilnot proposals the Government’s measures are more generous with regard to those...
Compared to the Dilnot proposals the Government’s measures are more generous with regard to those who receive care in their own home. In addition, the cap on how much a care home can charge for weekly “living costs” has been … Read more
Government Response
I thank the Committee for welcoming our social care charging reforms. The new £86,000 cap will end people’s worries that they may face unpredictable care costs, with roughly two thirds … Read more
HM Treasury
View details
16 Conclusion
Tenth Report - Autumn Budget and S…
However, when compared to the Dilnot Review’s recommendations that had been legislated for but which...
However, when compared to the Dilnot Review’s recommendations that had been legislated for but which have not yet been commenced, the Government’s proposals are less generous in how they treat the means tested contribution made by local authorities. As a … Read more
Government Response
I thank the Committee for welcoming our social care charging reforms. The new £86,000 cap will end people’s worries that they may face unpredictable care costs, with roughly two thirds … Read more
HM Treasury
View details
17 Recommendation
Tenth Report - Autumn Budget and S…
We welcome the reduction in the Universal Credit taper rate.
We welcome the reduction in the Universal Credit taper rate. It will provide a stronger incentive for many to take on additional work. The additional money will be welcome for many households. However, the taper rate reduction will be of … Read more
HM Treasury
View details
18 Recommendation
Tenth Report - Autumn Budget and S…
The Government should wherever possible announce major changes to the rates of existing taxes and...
The Government should wherever possible announce major changes to the rates of existing taxes and the introduction of new taxes at a Budget or other fiscal event such as a Spring Statement. This allows Parliament to consider the measures announced … Read more
HM Treasury
View details
19 Recommendation
Tenth Report - Autumn Budget and S…
For both social care announcements, the House was asked to vote on new government policies...
For both social care announcements, the House was asked to vote on new government policies that came with significant distributional impacts for households, without the usual distributional analysis that would be provided alongside a Budget. That was highly unsatisfactory. For … Read more
HM Treasury
View details
20 Conclusion
Tenth Report - Autumn Budget and S…
We are deeply concerned that the rate of the National Living Wage was disclosed to...
We are deeply concerned that the rate of the National Living Wage was disclosed to ITV in an unauthorised fashion prior to the Budget, and we agree with the Treasury that this could have caused confusion in the market as … Read more
Government Response
On the announcement of the National Living Wage, I note the Committee’s concern and the government will conduct a review of handling arrangements ahead of future announcements.
HM Treasury
View details
21 Conclusion
Tenth Report - Autumn Budget and S…
The rate at which the National Living Wage is set will clearly affect some companies...
The rate at which the National Living Wage is set will clearly affect some companies and sectors which have large numbers of staff at the minimum wage more than it affects others who do not. Some of those firms will … Read more
Government Response
On the announcement of the National Living Wage, I note the Committee’s concern and the government will conduct a review of handling arrangements ahead of future announcements.
HM Treasury
View details
22 Conclusion
Tenth Report - Autumn Budget and S…
The Committee acknowledges that certain Budget measures might be released prior to the Budget, in...
The Committee acknowledges that certain Budget measures might be released prior to the Budget, in line with the Treasury’s “Macpherson principles”. However, under no circumstances should market sensitive policies be able to enter the public domain in a disorderly fashion. Read more
Government Response
On the announcement of the National Living Wage, I note the Committee’s concern and the government will conduct a review of handling arrangements ahead of future announcements.
HM Treasury
View details
23 Recommendation
Tenth Report - Autumn Budget and S…
The Permanent Secretary to the Treasury has written to us stating the Government will review...
The Permanent Secretary to the Treasury has written to us stating the Government will review the arrangements for such policies ahead of future announcements. Given the potential opportunity for disruption that this unauthorised leak could have caused, the Government should … Read more
HM Treasury
View details
Correspondence 2 letters
23 Nov 2021 Correspondence from the Secretary of State for Health and Social Care regarding social care funding impact assessment, dated 22 November 2021
Parliament page
19 Nov 2021 To committee Letter from Treasury Committee Chair to Chancellor relating to social care funding announcement
Parliament page