In his budget speech and three-year spending plan delivered on Wednesday, Finance Minister Rishi Sunak announced multi-billion-pound public investments as well as tight controls on day-to-day spending.

The following are key takeaways from Sunak's speech in parliament:

Inflation

The House will be aware of the difficult backdrop of rising inflation. In September, inflation was 3.1%, and it is expected to rise further; the OBR expects CPI to average 4% next year.

The supply chain and energy price pressures will take months to alleviate. Anyone who claims that we can solve this problem overnight is being irresponsible.

OBR Forecasts

They expect the economy to return to pre-COVID levels by the end of the year, which is earlier than they predicted in March. This year's growth rate has been revised up from 4% to 6.5%.
The OBR then forecasts that the economy will grow by 6% in 2022, and then by 2.1, 1.3, and 1.6% over the next three years.

At the height of the pandemic in July of last year, unemployment was expected to reach 12%... The OBR today reduced their scarring assumption from 3% to 2%.

Debt And Borrowing

Underlying debt is forecast to be 85.2% of GDP this year, then 85.4% in 2022-23, before peaking at 85.7% in 2023-24. It then falls in the final three years of the forecast from 85.1% to 83.3%.

Borrowing as a percentage of GDP is forecast to fall in every single year. From 7.9% this year to 3.3% next year, then 2.4%, 1.7%, 1.7% and 1.5% in the following years.

Business Rates And Taxes

The government has delayed fundamental reform of business rates, but the chancellor has offered up to £7 billion in selective property tax cuts to boost investment and help the high street.

"I’m announcing today, for one year, a new 50% business rates discount for businesses in the retail, hospitality, and leisure sectors."

Sunak added that "My goal is to reduce taxes. By the end of this Parliament, I want taxes to be going down not up. I want this to be a society that rewards energy, ingenuity, and inventiveness. A society that rewards work."

Future Growth Plans

"Over the long term, the only way to pay for higher spending is economic growth. And if we want to see higher growth, we’ve got to tackle the problem that’s been holding this country back for far too long: Our uneven economic geography."

"As we come out of the worst economic shock we’ve ever seen, we've got a choice. To retrench - or to invest. This Government chooses to invest: To invest in our economic infrastructure. To invest in innovation. To invest in skills. To invest in a Plan for Growth that builds a stronger economy for the future."

Additional Key Quotes From Sunak's Speech

The UK's debt is under control. Tough months ahead due to the pandemic.

Global energy consumption has increased.

The government may spend up to 3% of GDP on investment. All of our new budgetary requirements have been satisfied.

A 1-percentage-point rise in inflation and interest rates will cost us about $23 billion. I have written to BOE to reiterate their mandate to pursue low and stable inflation.

The taper rate will be cut by 8% for universal credit. The universal credit rate will drop to 55%. Change to universal credit will be worth £2 bln. Universal credit changes are worth £2 bln. Universal credit change will take effect no later than December 1.

For business building improvements, we will create a temporary tax break. My goal is to reduce taxes by end of this Parliament.