On Wednesday 6 March 2024, the Chancellor Jeremy Hunt delivered the 2024 spring Budget to Parliament. Here is our summary of the main talking points.
Inflation
Jeremy Hunt says the Office for Budget Responsibility (OBR) expects inflation to fall below 2% within months. It was 11% when he and Rishi Sunak took office.
National Insurance
From 6 April 2024, employee national insurance will be cut from 10% to 8%, and self-employed national insurance contributions from 8% to 6%. The 2p cut in national insurance will save the average worker £450 per year.
Stamp Duty relief
Hunt has announced stamp duty relief for people buying more than one dwelling is being abolished from 1 June 2024 (unless pursuant to contracts exchanged before 6 March 2024). He says this is a result of it being regularly abused.
Windfall tax
The Chancellor will extend the UK’s windfall tax on the profits of oil and gas companies until 2029.
£3.4bn plan to modernise NHS
Hunt says the NHS needs modernisation and has pledged £3.4bn to expand AI use for quicker cancer diagnosis, transforming access and services for patients, cutting admin and freeing up capacity.
British ISA
The Chancellor says the government will create a “British ISA” in the form of an extra £5,000 tax-free allowance for the public to invest exclusively in UK. This ISA allowance will be on top of the existing one.
Capital gains tax on residential property
The higher rate of property capital gains tax will be reduced from 28% to 24%.
Child benefit
From April, the threshold will rise from £50,000 to £60,000 for a single parent and the rate at which this is withdrawn has risen from £60,000 to £80,000.
Increase to repayment period for new loans
The Chancelor has announced an increase to the repayment period for new loans from 12 months to 24 months and an end to the £90 charge for debt relief orders.
VAT registration threshold
The VAT registration threshold will go up from £85,000 to £90,000.
Household Support Fund
The Household Support Fund which allows local councils in England to help families through food banks, warm spaces and food vouchers will continue for a further six months.
Fuel duty
Fuel duty will remain frozen for a further 12 months. The ‘temporary’ 5p cut on fuel duty which was due to end in March 2025 has been extended. He says this will save average car drivers £50.
Alcohol duty
The Chancellor has frozen alcohol duty. The freeze in duty was expected to end in August but this has been extended to February 2025.
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