Image source, PA Media

We're ending our live coverage for today. Before we go, here’s a reminder of the day's main reaction to Rishi Sunak's Budget:

• The Institute for Fiscal Studies says middle-income families are "likely to be worse off next year" and adds that a combination of tax increases and high inflation "over the next several years" will mean "very slow growth in living standards"
• The Resolution Foundation think tank says measures introduced since Boris Johnson came to power, including Wednesday's Budget, are set to cost households £3,000 more in tax each year
• Shadow chancellor Rachel Reeves tells the BBC that while she welcomes the increases in spending, it's not the Budget she would have delivered and calls the decision to cut air passenger duty the week before COP26 "astonishing"
• Rishi Sunak defends the move to cut air passenger duty, emphasising the importance of consistency "with our environmental goals" but tells the BBC: "We're doing this to support domestic aviation, and regional airports will benefit from this"
• Scotland's First Minister Sturgeon says the chancellor made the "wrong choice" announcing the cut in charge on domestic flights just days before COP26 opens in Glasgow
• Former housing secretary Robert Jenrick says the Treasury is "simply not willing" to do more to help leaseholders remove unsafe cladding from buildings, after campaigners said the government must be "operating in a time warp" to have announced the same £5bn funding for a fourth time
• Sunak's Budget offers an "age of stagnation" rather than optimism, once the "Instagram filter" is removed, says shadow business secretary Ed Miliband

You can read an overview of yesterday's Budget here, analysis from our economics editor here, and analysis from our political editor here.

Reality Check

Chancellor Rishi Sunak made a number of claims both in his Budget speech and in his round of interviews afterwards.

Among them were suggestions that national debt was down, he cut taxes for "millions" of the lowest paid, and that he took "advantage" of leaving the EU to reform alcohol duty.

But are those claims accurate?

The BBC Reality Check team has had a look.

How can Sunak reduce air passenger duty ahead of COP26?published at 15:45 British Summer Time 28 October 2021

15:45 BST 28 October 2021

Marilyn Taylor asks...

Kevin Peachey
Personal finance correspondent

Image source, Getty Images

Sunak has already faced a lot of questions and criticism about the timing of his decision - and should expect more.

He argues that lowering air passenger duty on flights between airports in the four UK nations is balanced by increasing the rate of tax from April 2023 on very long-haul flights (over 5,500 miles).

He also says domestic flights only account for 4% of total aviation emissions. In the end, it looks like it was a balancing act for the chancellor between the government's levelling-up agenda and climate considerations.

Image source, PA Media

Chancellor Rishi Sunak made the "wrong choice" announcing a cut in charges on domestic flights days before the global COP26 climate summit in Glasgow, says Nicola Sturgeon.

The Scottish first minister adds there is "much to be disappointed in" with the package of measures in his Budget.

She says the Air Passenger Duty (APD) cut is not one the Scottish government would have introduced, adding: "But it is for them [UK government] to defend that in the months to come."

Ahead of COP26, "all of us have an obligation to think about how we contribute to reaching net zero and saving the planet", Sturgeon says.

You can read more about the impact of the Budget on environmental issues here.

Will living wage rise actually be felt in people's pockets?published at 15:19 British Summer Time 28 October 2021

15:19 BST 28 October 2021

Peter Ovenstone asks...

Kevin Peachey
Personal finance correspondent

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The question of whether any benefit from a rise in the National Living Wage will be offset by the increase in National Insurance and changes to Universal Credit rules is a good one.

But it's a tricky one to answer because people in different circumstances will be affected to a differing extent.

It is the case that the boost of a rising minimum wage is lessened by the tapering of universal credit, the upcoming national insurance increase, and - crucially - the forecast rise in prices.

Economists at the Institute for Fiscal Studies say the policies taking effect will ultimately be progressive. In other words, good for low earners.

For those without a job though, the outlook is much more precarious.

• Universal credit: What is the taper rate?
• How much is the minimum wage?
• National Insurance: What will the new Health and Social Care tax cost me?

Former housing secretary Robert Jenrick says the Treasury is "simply not willing" to do more to help leaseholders remove unsafe cladding from buildings.

During the Budget, the chancellor said £5bn would be given to remove unsafe cladding from the highest-risk buildings.

But homeowners affected were unimpressed, saying the government must be "operating in a time warp" to have announced the same £5bn funding for a fourth time.

Jenrick says: "The choice for the government is: what is the balance between the state paying, and then trying to recoup as much of that as possible from the developers through taxes, and the leaseholder."

He says while leaseholders may find the current set up "extremely unfair", the only other option was for taxpayer to step in "and massively increase that £5bn fund".

"At the moment - and I fought this battle for a couple of years - the Treasury, the government, is simply not willing to do that," he says.

You can read more about cladding here.

Image source, Pacemaker

Rishi Sunak claims his budget allocation represents the largest annual funding settlement for devolved governments since 1998.

But Northern Ireland's finance minister Conor Murphy says it will create "significant challenges".

He disputes the chancellor's claim that the nation will get an extra £1.6bn per year for public services.

Murphy says it will amount to £1.9bn for day-to-day spending over three years - "nowhere near" what is required.

Read BBC News NI economics & business editor John Campbell's full analysis here

Image source, Reuters

With so many announcements yesterday, you'd be forgiven for feeling a bit overwhelmed.

But don't worry, we're on hand to help you catch up:

• Read the key points from the Budget here and find out how it will affect you and your money here
• Listen to Newscast's take here - or if you're short on time listen to 5 Minutes On here
• Watch all the main headlines in 126 seconds here

Kevin Peachey
Personal finance correspondent

The UK's pandemic house price boom is forecast to come to an end, but property prices are still expected to rise in each of the next five years.

Some surveys have recorded house prices rising at a rate of more than 10% a year but the government's official, independent, forecasters have said this will drop to 3.5% by 2026.

The Office for Budget Responsibility (OBR) also says that mortgage rates are likely to rise from record lows.

Rent for tenants will also go up.

It means potential first-time buyers are facing another period of difficulty if they wish to buy a home.

Read more here.

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While many of the decisions about tax and spending in Scotland are made in Edinburgh, the UK Budget still has a big impact - well beyond the simple question of how much cash goes into Holyrood's coffers.

Sunak has opted to turn on the spending taps across every government department, and this means Scottish Finance Secretary Kate Forbes will have more cash to allocate when she sets out her own draft budget in December.

This is because many of the eye-catching announcements in the UK budget relate to matters which are devolved to Holyrood - for example the £24bn earmarked for housing or the £21bn for roads.

Read more here from BBC Scotland political reporter Philip Sim on what the Autumn Budget means for Scotland.

Image source, Getty Images

The SNP's economy spokeswoman Alison Thewliss says she's concerned the Budget doesn't go far enough to support the hospitality sector.

Thewliss says a few pence off a pint "does nothing" to support the sector hard hit by the pandemic.

She says it "baffles" her why the chancellor has ignored calls to keep the reduced 12.5% for VAT for hospitality.

The MP for Glasgow Central also says all eyes are on her constituency due to upcoming climate summit COP26, which begins in the Scottish city on Sunday.

But she says the Budget and Spending Review "falls awfully short of the ambition required to tackle this global climate challenge".

Why are some Budget changes not scheduled until 2023?published at 14:08 British Summer Time 28 October 2021

14:08 BST 28 October 2021

Paul Amphlett asks...

Kevin Peachey
Personal finance correspondent

Indeed a lot can change by then, but long-term policy announcements in a Budget are nothing new.

The shake-up of alcohol duty, for example, is quite complex and will need to go through a consultation and scrutiny process before its planned introduction in 2023.

• Prosecco and pint taxes to fall, red wine to rise

Image source, Getty Images

Chancellor Rishi Sunak's Budget has promised a cash boost for Welsh public services and more money for low-paid workers on universal credit.

He also promised to increase Welsh government budgets by an average of £2.5bn a year.

Just over £120m from the levelling-up fund was also earmarked for 10 Welsh projects.

But the Labour-led Welsh government has accused the Treasury of leaving "clear gaps in funding".

It says its own calls for cash to tackle coal-tips or additional funding for rail infrastructure have gone unanswered.

Read BBC Wales political reporter David Deans' full analysis here

Image source, Reuters

Business Secretary Kwasi Kwarteng says the Budget is a "blueprint for a stronger Britain".

Speaking in the Commons, he says: "It's a country where if you have innovative ideas you will get the support you need to turn it from a dream into reality.

"It's a country where if your talent is nurtured and your skills are honed you will get the support and the ongoing interest and engagement - strong engagement - from the government.

"It's a country where if someone does an honest day's work they will receive a decent wage."

He says "many of us have listened to the litany of woe and despair for too long" and now feel optimistic, adding: "We are very excited about the future of our country."

A strong rebound will be achieved, not by "splashing cash indiscriminately", he says, but by spending taxpayers' money wisely - "to make the choice to foster an environment that encourages innovation and growth".

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We brought you reaction earlier from the Institute for Fiscal Studies think tank, which says the Budget will produce "real pain" for lower income households.

No 10 has responded, saying the government is taking on the long-term challenges facing the country.

A spokesman for the prime minister says: "I think this is a Budget and a settlement which is aimed to boost our economy - they are targeted interventions towards those who need it.

"We have taken the difficult decision to raise taxes on things like the [health and social care] levy in a fair and progressive way and that importantly is to raise money both to help our NHS and to finally fix the long-standing problem of social care.

"That's something that the public have been calling on successive governments to do for a number of years now - and it is this government that is taking on these challenges to get them fixed for the long term."

Image source, PA Media

Rishi Sunak's Budget offers an "age of stagnation" rather than optimism, once the "Instagram filter" is removed, says Ed Miliband.

Speaking in the Commons, the shadow business secretary says there has been 11 years of "low growth, stagnant wages, falling living standards" under the Conservatives, with the Budget failing to tackle the cost-of-living crisis.

He says the Budget is "already unravelling" less than 24 hours since it was delivered "because of the chasm between the claims of ministers and the reality that working people face".

"It's clear he [Sunak] is living on a totally different planet," he adds.

Miliband tells MPs: "Yesterday we saw raid upon raid on the living standards of working people. Council tax hikes hidden in the Budget documents, not announced by the chancellor.

"A stealth raid on the self-employed worth £1.7bn over the coming five years, not announced by the chancellor.

"And of course the national insurance hike on ordinary families confirmed."

The "most shameful" part of the Budget, he says, was the government's "refusal to reverse" the cut to universal credit, which saw the removal of £20 weekly uplift.

Image source, PA Media

Downing Street reacts to analysis by the Resolution Foundation that suggests household tax bills will be £3,000 higher after the Budget compared with when Boris Johnson became prime minister, saying it is "not a fair reflection" of the fiscal situation.

The PM's spokesman tells reporters: "The £3,000 household tax figure you've quoted isn't a fair reflection of how tax is levied because it appears to include business and employer taxes - and those aren't directly applicable to households."

He says the same report also shows that government policies are "set to boost incomes for those at the bottom of the distribution" and that higher taxes will mostly impact the middle to higher income households.

"The decisions made by this government will give households nearly £500 per year extra on average, with the poorest receiving more than £1,000, and that's before we factor in things like wage growth," he adds.

Image source, Getty Images

The director of the Resolution Foundation think tank, Torsten Bell, says the move to cut the weekly extra £20 given to universal credit claimants during the pandemic will improve the welfare system - but warns it will help better off UC claimants, while giving nothing to compensate the poorest.

The Institute for Fiscal Studies says middle-income families are "likely to be worse off next year" than they are currently and says a combination of tax increases and high inflation "over the next several years" will mean "very slow growth in living standards".

Shadow chancellor Rachel Reeves tells BBC Breakfast she welcomes the increases in spending announced by the chancellor yesterday but says it's not the Budget she would have delivered and calls the decision to cut air passenger duty the week before COP26 "astonishing".

Also speaking to BBC Breakfast, Rishi Sunak defends the move emphasising the importance of consistency "with our environmental goals" but adding: "We're doing this to support domestic aviation, and regional airports will benefit from this."

BBC News Channel

With changes to alcohol duty, business rates and wages, let's look at how the Budget will affect bars.

Martin Greenhow, who owns a chain of five bars across the Midlands and north of England, says the Budget is "a mixed bag".

"The business rates discount for next year is obviously very welcome," he says. "But ultimately we have to face the fact that it will be more than offset by the rise in the national living wage."

On alcohol duty - which will rise on stronger drinks - he says: "I'm sure for some it will be a great help.

"For ourselves, we're a cocktail bar, so obviously we're probably at the strong end of the drinks spectrum. So we're probably going to see a bit more pain from that."

He says some in the industry think this could mean the price of a pint will rise by 20-30p, but warns that he still needs to see the details.

"We're loath to increase prices," he says, but adds the hospitality industry "isn't in a position to absorb these debts".

"That has to be passed on, because otherwise businesses fail."

Read more about the changes to alcohol duty here.

Roger Harrabin
BBC environment analyst

Image source, Reuters

Rishi Sunak didn't explicitly mention the climate in his Budget speech. But let's look at how his plans could impact the environment:

Flying

Stopping flying is one of the single best things you can do for the climate - but flying within the UK will become cheaper, thanks to a halving of air passenger duty.

Sunak defended the decision, saying he was removing an anomaly in which people were taxed more to fly in the UK than to Europe. Surveys consistently show that people want frequent fliers to be taxed extra.

Home insulation

The UK won't meet climate change targets with its current leaky housing stock, but campaign group Insulate Britain hasn't managed to convince the chancellor that upgrading homes is a good job-creating infrastructure investment.

"With the COP26 conference just days away, the chancellor's announcements felt like they were from a different planet and a different time," says Julie Hirigoyen, chief executive at the UK Green Buildings Council.

Railways

The government's investment in rail has been widely welcomed, along with a major input of £4.8bn to improve public transport within cities.

The Railway Industry Association has welcomed the extra funding, but its chief executive Darren Caplan says there were missed opportunities with regards to "electrification and fleet orders of hydrogen and battery trains".

Read more about cars, nuclear energy, and other reaction here.