Budget Announcements Short Report 6 March 2024

7th March 2024

This is probably the last budget before a general election.

Here are a few of the changes.

Income Tax - National Insurance
Simpler system to make work pay.
National Insurance a further 2% cut to 8% for employees.
Further cuts for self-employed.
Expected to create 200,000 further people in employment.
Effective tax rates one of the lowest in he G7 countries.

Tax and income support
Longer repayment period for people on benefits taking out emergency budgeting loans from the government.

£90 fee to obtain a debt relief order scrapped.

Government fund for people struggling with cost of living pressures to continue for another six months.

£5,000 "British ISA" tax allowance for individual savers to invest in UK-listed companies.

Alcohol Duty
Freeze on alcohol duty, which had been due to end in August, to continue until February 2025.

Vaping
New taxon vapes

Tobacco
One off increase in tobacco duty.

Fuel Duty
Fuel duty frozen again, with the 5p cut in fuel duty on petrol and diesel, due to end later this month, kept for another year.

Debt and Inflation
Office for Budget Responsibility predicts UK economy to grow by 0.8% this year and 1.9% next year.

Growth of 2% predicted for 2026, with 1.8% in 2027 and 1.7% in 2028.

UK's inflation rate forecast to fall below 2% target "in just a few months' time".

Underlying debt, excluding Bank of England debt, forecast to be 91.7% of GDP this year, rising to 92.8% next year.

Small business VAT
Threshold at which small businesses must register to pay VAT raised from £85,000 to £90,000 from April.

NHS productivity plans
Funding in full for NHS Improvement plans. - £2.5billion to focus on reducing waiting times.

Children's homes In England
£100million to reduce private agencies and increase public capacity.

Scotland Extra Cash
Scotland will get £00million as result of Barnett Consequentials. The Scottish Government will decide how to use the funds.

Property Taxes
Abolish Furnished Holiday schemes to improve longer term letting.

Higher rate of Capital Gains Tax reduced from 28% to 24%

Air Passenger Duty
Increased

Taxes for residents - Non-doms
New system for treatment. Abolish system for Nondoms.
Modern residency system from April 25. 4 years no tax paid for incomers. Transitional arrangements.
Will raise $2.7Billion in new taxes.

Child Benefit
Changes to the limits and needs more data - will change April 26.
From April 24 the high income threshold will rise from £50,000 to £60,000. Other amendments will also be in place.