Autumn Budget Review: How will it affect your business?

To the relief of many van drivers, it was announced that the fuel duty will stay frozen for the 12th year in a row, meaning the duty levied on petrol and diesel will stay at …

Budget Update 2021

To the relief of many van drivers, it was announced that the fuel duty will stay frozen for the 12th year in a row, meaning the duty levied on petrol and diesel will stay at 57.95 pence per litre. This is a result of the increase in fuel prices; before the pandemic, petrol cost 122p per litre and diesel cost 125p per litre, with prices expected to fall. However, petrol now costs 146p per litre and diesel costs 150p (as at 5/11/21).[1]

The budget also highlighted plans for a greener future, encouraging growth in the electric vehicle market to help meet the target of no new petrol and diesel cars or vans to be sold by 2030. For electric van owners, the changes include £620 million to improve charging infrastructure and plug-in vehicle grants on top of the £1.9 billion Sunak promised in 2020[2].

Following hot on the heels of COP26, many will be keen to make the most of the new £5,000 grants available to help people replace their gas boilers with low carbon heat pumps. Not only will this help to reduce reliance on fossil fuels, it is also estimated that the new clean energy strategy will create 240,000 new jobs by 2035[3].

And there is more good news for tradespeople. As part of the government’s extension of their ‘Plan for Jobs’ announced at the Conservative Party Conference, the apprenticeship incentive scheme and the Kickstart scheme will both be extended. The apprenticeship incentive scheme allows businesses to apply for a £3,000 payment from the government for hiring a new apprentice. The scheme was due to end on 30th November 2021 but has been extended to 31st January 2022[4].

The Kickstart scheme, which has been extended to March 2022, was part of the government’s coronavirus support package, aiming to help employ young people receiving Universal Credit by paying businesses to hire young people for 6-month job placements. The payment covers 100% of the national minimum wage for 25 hours per week for 6 months, in addition to employer national insurance contributions and minimum automatic enrolment pension contributions.[1]

For those paying a wage, there will be an increase in National Insurance contributions and the minimum wage. National insurance contributions will increase by 1.25% from 6th April 2022 to 5th April 2023. This applies to class 1, class 4 and secondary class 1, 1A and 1B contributions, making hiring new employees more expensive. [2]

The national wage is increasing to try and meet the target of £10 an hour by 2024. For those over 23, it will increase from £8.91 to £9.50 an hour, coming into force on 1st April 2022.[3]

Also included in Sunak’s budget, were pledges to improve roads and houses. £21 billion has been set aside to help improve roads in the UK and £11.5 billion has been set aside as part of the affordable homes programme, aiming to build 180,000 new affordable homes.[4]


[1] Kickstart Scheme – GOV.UK (www.gov.uk)

[2] National Insurance: How much you pay – GOV.UK (www.gov.uk)

[3] Autumn Budget 2021 for tradesmen and tradespeople (simplybusiness.co.uk)

[4] Autumn Budget 2021 for tradesmen and tradespeople (simplybusiness.co.uk)


[1] Budget greeted as generally good news | Business Motoring

[2]Autumn Budget 2021: fuel duty to remain frozen – Which? News

[3] Autumn Budget 2021 for tradesmen and tradespeople (simplybusiness.co.uk)

[4] Autumn Budget 2021 for tradesmen and tradespeople (simplybusiness.co.uk)