On 27 October 2021, Chancellor Rishi Sunak presented the UK’s second Budget of 2021 under the tagline “A Stronger Economy for the British People”.
As the country and economy continue to recover from the effects of the coronavirus pandemic, several aspects of this year’s budget were referenced to be aimed at supporting and facilitating this recovery.
The Chancellor remained positive on the UK’s employment statistics, stating that unemployment is expected to peak at 5.2%. This is lower than the 11.9% previously being predicted and indicates that more people across the UK have remained in employment than previously expected. Wages were also announced to have increased since February 2020, with a 3.4% rise being reported.
From an employment law perspective, there are several aspects that will impact both individuals and businesses, including changes to the national minimum wage and various changes to taxes. We have set out, here, a summary of the key announcements and considerations that employers should be aware of.