Spring Budget 2024 – what’s in it for you?

Spring budget

As Jeremy Hunt wraps up his speech for the Spring Budget 2024, we distil the main changes and updates so you can see what’s likely to impact you over the coming months.

Cost of Living measures

  • The Office of Budget Responsibility’s forecast for inflation is now a reduction from the Dec 2022 level of over 11% to 4.0% with a forecast for below 2% within the next few months.
  • 1m households on Universal Credit who take out advance loans to pay for emergencies such as boiler repairs, they will have 24 months to repay loans instead of 12 months. The £90 charge for debt relief orders will also be abolished.
  • The Household Support Fund, which allows local councils to help families via food banks, warm spaces and food vouchers, will be extended beyond 31 March, for another 6 months.
  • Fuel duty will be frozen and the 5p cut is maintained for an additional 12 months, saving the average driver around £50 next year.
  • Alcohol duty will be frozen until Feb 2025, supporting pubs.

Taxes

  • One off increase in tobacco duty and a new levy on vaping.
  • One off increase on air passenger duty for business class travellers.
  • Furnished holiday lettings regime abolished.
  • Stamp Duty multiple dwellings relief to be abolished.
  • Higher rate on Capital gains tax on property reduced from 28% to 24%.
  • Non-dom tax status will be abolished from April 2025 and will raise £2.7bn to be used to cut taxes for working families.
  • High income child benefit charge to be reformed to a household basis. Threshold raised from £50,000 to £60,000 and a higher taper threshold of £80,000. This will encourage more people to enter the workforce.
  • Reduction in National Insurance contributions from 6 April – employee NI reduction from 10% to 8%. Self employed 8% to 6%.
  • Long term ambition to end the unfairness of double taxation for work by cutting NI.
  • There are no additional changes to income tax rate, income tax personal allowance, Dividend Tax, Universal Credit or National Pay rates which will all remain as stated in the Autumn Statement 2023.

Enterprise and investment measures

  • The OBR is forecasting that the economy (GDP) will increase 0.8% in the coming year.
  • Full expensing to apply to leased assets, but no indication of when this will happen.
  • Increase VAT registration threshold from £85,000 to £90,000 from 1st April 2024.
  • Devolved power to local leaders to make investment decisions– Northeast Trailblazer, Buckinghamshire, Warwickshire and Surrey.
  • £100m of levelling up funding to support cultural projects. £15m in new funding to West Midlands and £5m to refurbish village halls. £300m to Scotland, £170m to Wales and £100m to NI.
  • Building more houses for young people – £242m to support house building in Canary Wharf. Long term funding settlement for Cambridge.
  • Support for innovative businesses to attract investments to our tech industries.
  • Retail investors – selling governments shares in NatWest when the time is right.
  • New 3-year British Savings Bond to encourage investment and saving.
  • Reform of the ISA system – a new British ISA allowing an additional £5,000 for investments in UK equities.
  • Nuclear to provide 25% of energy requirements by 2050. £120m to green industry. £270m into innovative R&D automotive/aviation industry.
  • Europe’s largest film/TV hub. Tax relief credit increase by 5% in AV expenditure credit.
  • New tax credit for independent film companies.
  • 45% tax relief for touring productions/40% for non-touring productions.
  • New investment of £600m by Astra Zeneca to fund building of a vaccine manufacturing hub.
  • £45m for medical research including £3m for cancer research.
  • Windfall profits levy extended to 2029, raising £1.5bn.

Public services

  • Productivity remains below pre-pandemic levels by 6%. Keeping planned growth at 1% for day-to-day public spending.
  • NHS long-term workforce planning requires investment in IT systems. NHS productivity plan will be funded in full at £3.4bn, unlocking £35bn of savings.

Wages from 1 April 2024

  • National Living Wage for those aged 21 and over: From £10.42 to £11.44 an hour
  • National Minimum Wage for those aged 18-20: From £7.49 to £8.60
  • National Minimum Wage for those aged 16-17: From £5.28 to £6.40
  • National Minimum Wage for Apprentices: From £5.28 to £6.40

For more information on the Spring Budget 2024, visit the Government website.

Understanding the impact of the Spring Budget 2024

To talk about how the Spring Budget 2024 might affect your business or your personal situation, get in touch with the Adams Accountancy team. Call 01322 250001 or email info@adams-accountancy.co.uk.

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