Budget calculator 2021: what does it mean for me?

How will the budget affect you?

The chancellor, Rishi Sunak, has delivered his 2021 budget after a year of economic turmoil caused by Covid-19. Stressing the “profound damage” done to the UK economy by the pandemic, Sunak outlined taxes on companies and workers to help repair public finances.

Recognising it would take time for growth to bounce back once lockdown restrictions were lifted, Sunak said he would do “whatever it takes” to help the economy recover. However, in a major reversal of Tory economic policy, he said the rate of corporation tax would need to go up to 25% for the most profitable companies in Britain from April 2023. Although stating he would not raise national insurance, income tax or VAT, Sunak announced a freeze to personal tax thresholds for basic and higher rate earners until 2026, in a move that should raise about £8bn a year within five years.

The chancellor said the economy would recover more quickly from the pandemic than previously thought, returning to its pre-pandemic size by the middle of next year. As announced before his statement, the furlough scheme will be extended until the end of September. The self-employment income support scheme has also been extended and the £20-a-week increase in universal credit will continue for a further six months.

Other key points include an extension of the stamp duty holiday, a mortgage guarantee to help first-time buyers access 95% mortgages, and a freeze on alcohol and fuel duties.

How will the chancellor’s plans affect your own financial wellbeing? Enter your details in the calculator at the top of the page, created by accountants Blick Rothenberg, to find out.