March 6, 2024

Budget Breakdown – Spring 2024

By Patrick Boughton

A Quick Look at the Main Highlights of the 2024 Budget 

Chancellor Jeremy Hunt recently presented the 2024 budget in the House of Commons, outlining various fiscal measures and initiatives aimed at addressing key economic and social challenges. Here’s a concise overview of the main highlights: 

Taxation: 

  • National Insurance contribution rate to decrease from 10% to 8% starting in April, with an additional 2p decrease announced previously. 
  • Non-dom tax regime to be replaced with new rules from April 2025. 
  • Introduction of a £5,000 UK ISA tax allowance for investors in UK-focused shares following consultation. 

Benefits and Income Support: 

  • Full child benefits to households where the highest-earning parent earns up to £60,000. 
  • Partial child benefit to be paid where the highest earner earns up to £80,000. 
  • Longer repayment period for emergency budgeting loans and continuation of the government fund for people struggling with living expenses. 

Cigarettes, Vapes, and Alcohol: 

  • Freeze on alcohol duty extended until February 2025. 
  • New tax on vaping products to start in October 2026. 
  • Increase in existing tobacco tax to maintain financial incentives for vaping over smoking. 

Transport and Energy: 

  • Freeze on fuel duty extended for another year. 
  • £160m deal for the UK government to purchase the site of the planned Wylfa nuclear site in north Wales. 
  • Extension of the “windfall” tax on energy firms until 2029. 
  • Increase in air passenger duty for business class tickets. 
  • Additional £120m for government green energy projects fund. 

Housing: 

  • Reduction of the higher rate of tax on property profits from 28% to 24%. 
  • Scrapping of tax breaks for owners of holiday let properties. 

Public Debt, Inflation, and the Economy: 

  • Predicted economic growth of 0.8% this year and 1.9% next year, with further growth in subsequent years. 
  • Forecasted inflation rate to fall below the 2% target in the near future. 
  • Expected underlying debt to be 91.7% of GDP this year, rising to 92.8% next year. 
  • Overall day-to-day government spending to increase by 1% in real terms over the next five years. 
  • NHS budget to increase by £2.5bn next year and receive £3.4bn up to 2030 for productivity improvements. 

Business and Investment: 

  • VAT registration threshold raised from £85,000 to £90,000 from April. 
  • Extension of Covid-era government loan scheme for small businesses until March 2026. 
  • Permanent tax reliefs for touring and orchestral productions.

Other Measures: 

  • £1m allocated for a memorial honouring Muslims who fought for Britain during World War One and Two. 
  • Introduction of a new tax credit for independent UK films with a budget of less than £15m. 

These budget measures reflect the government’s efforts to address various economic and social challenges while promoting growth and stability in the UK economy. 

 


https://www.theguardian.com/uk-news/2024/mar/06/budget-2024-key-points-jeremy-hunt
https://www.bbc.co.uk/news/business-68359756
https://www.independent.co.uk/news/uk/politics/budget-2024-jeremy-hunt-national-insurance-tax-cuts-live-b2507831.html

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Patrick Boughton

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