Budget 2021: key points from Rishi Sunak’s speech, alcohol duty overhaul, public sector pay rise

“Today was an acid test for the government’s flagship levelling up agenda – and the Chancellor has fallen short of the sky-high rhetoric that he and the government set themselves to fix the UK’s unprecedented regional divides. The announcements today lack the essential ingredients needed to achieve this – sustained regional investment and substantial devolution. The country is no more on track to level up than it was yesterday.

“It appears that the government’s plan to level up is little more than centrally controlled, ring-fenced, competitive funding pots designed more to get headlines than to narrow inequalities. The UK faces the deepest regional divides of any comparable country. Today was a day not for first steps, but for outlining how we’ll deliver levelling up over the next few years. This requires the publication of the Levelling Up White Paper, a commitment from all of government demonstrated by action, a power shift away from Whitehall to town halls, as well as sustained investment to grow regional economies.

“Austerity is not over, our regional divides are deep and growing, we are not out of the woods of a catastrophic pandemic, and we need to get ahead of the game on building a net zero economy. The North’s resilience has been undermined by these interacting factors for years. Levelling up could be a golden opportunity to reduce divides, boost opportunity, and give communities control over their destinies. It is not an opportunity that has been seized today.”

“The expectation for household income increases over the next five years will be pretty stagnant – growing at less than one per cent a year for the next five years, and that’s partly because of inflation, that’s partly because of the big tax rises that we’ve seen imposed, that’s partly because growth is so poor and that’s really very disappointing because, remember, we’ve had a decade of pretty stagnant living standards, and I think in the end that’s going to be the big political driver of a lot that goes on, as it was over the last decade.

“Poor living standards had a big political effect and it looks like those almost non-existent increases in living standards over the next half a decade, that’s a big blow to all households and families of course, but it can also have a big impact on politics.”

“The creative industries have demonstrated over the last 20 years that their capacity not only to create revenues for the UK but also to bring people together and make our towns, cities and rural areas outstanding places to live.

“The recognition of this in today’s announcement – doubling tax relief for museums, galleries, theatres and orchestras, £850 million in post-pandemic support for culture and heritage institutions, and £14 million a year in scale-up funding for creative SMEs – is hugely welcome, supporting the cultural sector when most needed.

“However, the limited expansion of R&D tax relief – which continues to exclude many in our sector – is disappointing, as is the missing arts premium, an election manifesto commitment made only two years ago.

“The creative industries have the power to drive economic growth and regeneration across our country, and creative skills are vital for a future-proof workforce.

“Just as important as preserving our rich cultural heritage is recognising the crucial role our films, television, music, fashion and games and world-leading talent in front of and behind the cameras play in shaping our future economic success and recovery.”

“The Chancellor has taken some welcome steps in his Budget yet further action is needed to support the music sector’s post-pandemic recovery.”

Mr Njoku-Goodwin added: “Covid halved music’s economic contribution to the UK economy from almost £6 billion a year to £3.1 billion in 2020. If the Government strikes the right note by delivering the support we need, our music industry will come back stronger and bigger than ever.

“We are pleased to see the extension of the orchestras tax relief yet the Government has missed an opportunity to not take forward further music tax incentives to help boost jobs and economic growth. Similarly, business rate relief for venues is very welcome yet we remain concerned about next April’s VAT hike for live events.

“Ministers must put turbo-chargers under the efforts to clear away the barriers that are still making it so hard and expensive for musicians and crew to tour easily in the EU.”