Spring Budget 2024 at a glance

Chancellor Jeremy Hunt has revealed the details of this year’s Budget in the House of Commons, marking the final planned Budget before the upcoming General Election expected later this year. Calling it a “Budget for long-term growth”, his statement included initiatives to stimulate investment, enhance public sector efficiency and reduce tax burdens.

The stand out measures were further reductions in NI contributions, an increase in the VAT registration threshold and the abolition of the non-dom tax regime, although all of these had been widely touted. Here’s summary of the key announcements:

Taxation

• A reduction of 2p in the pound for National Insurance, a payroll tax, applicable to both employees and the self-employed.
• Replacement of the non-dom tax regime for UK residents with permanent homes overseas with new rules starting from April 2025.
• Introduction of a £5,000 UK ISA tax allowance for savers investing in “UK-focused” shares, to be established after a consultation.

Benefits and Income Support

• Full child benefits extended to households where the highest-earning parent earns up to £60,000, compared to the current limit of £50,000.
• Partial child benefit to be paid to households where the highest earner earns up to £80,000.
• Extension of the repayment period for individuals on benefits taking out emergency budgeting loans.
• Continuation of the government fund aiding those grappling with the cost of living pressures for an additional six months.
• Removal of the £90 admin fee to obtain a debt relief order.

Cigarettes, Vapes, and Alcohol

• Freeze on alcohol duty extended until February 2025.
• Introduction of a new tax on vaping products starting in October 2026, following a consultation.
• Increase in the existing tax on tobacco to keep the financial incentive to choose vaping over smoking.

Transport and Energy

• Extension of the freeze on fuel duty, with the 5p cut in fuel duty on petrol and diesel maintained for another year.
• £160 million deal for the UK government to acquire the site of the planned Wylfa nuclear site in north Wales.
• Extension of the “windfall” tax on energy firms’ profits until 2029.
• Increase in air passenger duty for business class tickets.
• Additional £120 million for a government fund investing in green energy projects.

Housing

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

Public Debt, Inflation, and the Economy

• Predicted UK economy growth of 0.8% this year and 1.9% next year by the Office for Budget Responsibility.
• Forecasted inflation rate to fall below the 2% target in the coming months.
• Anticipated underlying debt to be 91.7% of GDP this year, rising to 92.8% next year.
• Projected growth of overall day-to-day government spending by 1% in real terms over the next five years.
• £2.5 billion increase in the NHS budget next year, with an additional £3.4 billion allocated up to 2030 to enhance productivity.

Business and Investment

• Increase in the threshold at which small businesses must register to pay VAT from £85,000 to £90,000 starting in April.
• Extension of the Covid-era government loan scheme for small businesses until March 2026.
• Permanent establishment of tax reliefs for touring and orchestral productions, originally scheduled to end in March 2025.

Other Measures

• Allocation of £1 million for a memorial honoring 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 £15 million.

Join our webinar

📅 Monday 11th March 2024

🕒 1pm 

Once the dust has settled, join Joe Taffurelli, Liquid Friday COO,  for an informal lunchtime webinar the Monday following the Spring Budget. We’ll look at the key implications and opportunities and discuss how the announcements will affect you, your business and your contractors, as well as examining any “rabbit in the hat” moments.

Register Now