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.
6 Recommendations
18 Conclusions
1 Report
2 Letters
4 Events
Activity timeline 4 events
2 Mar
2022
Report published
27 Jan
2022
Report published
23 Nov
2021
Correspondence
19 Nov
2021
Correspondence
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 Acknowledged
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
The government thanks the committee for their conclusions and states that the Treasury continues to monitor the risks of higher inflation and interest rates closely.
HM Treasury
View details
2 Conclusion Acknowledged
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
The government acknowledges the Committee's conclusions on the government’s fiscal strategy and states the Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for Budget Responsibility now contains a new focus on assessing the affordability of public debt.
HM Treasury
View details
3 Recommendation Acknowledged
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
The government thanks the committee for their conclusions and states that the Treasury continues to monitor the risks of higher inflation and interest rates closely.
HM Treasury
View details
4 Conclusion Acknowledged
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
The government notes the committee's conclusions on R&D spending ambitions and highlights existing investment plans.
HM Treasury
View details
27 Recommendation Acknowledged
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
Government Response
The government notes the committee's conclusions on R&D spending ambitions and highlights existing investment plans.
HM Treasury
View details
5 Conclusion Acknowledged
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
The government thanks the committee for their conclusions and states that the Treasury continues to monitor the risks of higher inflation and interest rates closely.
HM Treasury
View details
6 Conclusion Acknowledged
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
The government thanks the committee for their conclusions and states that the Treasury continues to monitor the risks of higher inflation and interest rates closely.
HM Treasury
View details
7 Conclusion Acknowledged
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
The government thanks the committee for their conclusions and states that the Treasury continues to monitor the risks of higher inflation and interest rates closely.
HM Treasury
View details
8 Conclusion Not Addressed
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
The government states they are exceeding commitments to replace EU funding and that spending power for the Department of Levelling Up, Housing and Communities is not falling.
HM Treasury
View details
9 Conclusion Acknowledged
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
The government thanks the committee for their conclusions and states that the Treasury continues to monitor the risks of higher inflation and interest rates closely.
HM Treasury
View details
10 Conclusion Acknowledged
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
The Treasury continues to monitor the risks of higher inflation and interest rates closely, and the Charter for Budget Responsibility now contains a new focus on assessing the affordability of public debt.
HM Treasury
View details
11 Conclusion Accepted
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
The government claims to be exceeding commitments to replace EU funding in full and refutes the claim that the spending power for the Department of Levelling Up, Housing and Communities is falling.
HM Treasury
View details
12 Conclusion Accepted
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
The government claims to be exceeding commitments to replace EU funding in full and refutes the claim that the spending power for the Department of Levelling Up, Housing and Communities is falling.
HM Treasury
View details
13 Conclusion Accepted
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
The government claims to be exceeding commitments to replace EU funding in full and refutes the claim that the spending power for the Department of Levelling Up, Housing and Communities is falling.
HM Treasury
View details
14 Conclusion Acknowledged
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
The government thanked the Committee for welcoming the social care charging reforms, noting the new £86,000 cap and that roughly two thirds will receive some state support for care costs.
HM Treasury
View details
15 Conclusion Acknowledged
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
The government thanks the Committee for welcoming their social care charging reforms and states that the new £86,000 cap will end people’s worries that they may face unpredictable care costs.
HM Treasury
View details
16 Conclusion Acknowledged
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
The government thanks the Committee for welcoming the social care charging reforms, stating the new £86,000 cap will end worries about unpredictable care costs and that it is highly unlikely anybody within the means test would deplete their assets to anywhere near the theoretical maximum level.
HM Treasury
View details
17 Recommendation Acknowledged
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
Government Response
The government acknowledges the Committee's support for the reduction in the Universal Credit taper rate and comments on the cost of living, stating they are providing total support worth over £20 billion across this financial year and next.
HM Treasury
View details
18 Recommendation Acknowledged
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
Government Response
The government notes the committee’s concern and states that it usually announces changes to the tax system at fiscal events, but the Health and Social Care Levy was developed and announced at speed.
HM Treasury
View details
19 Recommendation Rejected
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
Government Response
The government states that distributional analysis is more appropriate alongside fiscal events rather than individual policy announcements, and that they did publish analysis that took account of the Health and Social Care Levy in October 2021.
HM Treasury
View details
20 Conclusion Acknowledged
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
The government acknowledges the Committee's concern regarding the leak of the National Living Wage announcement and states it will conduct a review of handling arrangements ahead of future announcements.
HM Treasury
View details
21 Conclusion Acknowledged
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
The government notes the Committee's concern regarding the announcement of the National Living Wage and will conduct a review of handling arrangements ahead of future announcements.
HM Treasury
View details
22 Conclusion Acknowledged
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
The government acknowledges the Committee's concern regarding the leak of the National Living Wage announcement and states it will conduct a review of handling arrangements ahead of future announcements.
HM Treasury
View details
23 Recommendation Acknowledged
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
Government Response
The government acknowledges the Committee's concern regarding the leak of the National Living Wage announcement and states it will conduct a review of handling arrangements ahead of future announcements.
HM Treasury
View details
Government Response AI assessment · 24 of 6 classified
Accepted 3
Acknowledged 19
Not Addressed 1
Rejected 1
Total 6 recs + 18 conclusions
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