Budget 2024: Key points at-a-glance

(Credit: Kirsty O'Connor / Treasury)

Chancellor Rachel Reeves presented Labour’s first budget in 14 years today and marked history as the UK’s first female Chancellor to deliver the speech. The main measures announced include:

Compensation for Scandals

  • £11.8bn allocated for those impacted by the contaminated blood scandal, providing financial compensation.
  • £1.8bn in compensation funds set aside for those affected by the Post Office scandal, addressing years of financial and legal issues for those involved.

Tax Changes and Financial Relief

  • An overall £40bn increase in taxes, aimed at strengthening public services and national projects.
  • Employers’ National Insurance Contributions will rise by 1.2 percentage points by April 2025.
  • Lowered the earnings threshold at which companies pay from £9,100 to £5,000.
  • Capital Gains Tax rates increase: the lower rate to 18% and the higher rate from 20% to 24%, bringing tax structures closer to regular income tax rates.
  • The inheritance tax threshold freeze is extended until 2030.
  • 40% business rate relief introduced for retail, hospitality, and leisure sectors for 2025-26 to support these industries amid economic shifts.
  • The non-dom tax regime will be abolished starting in April.

Minimum Wage Adjustments

  • For workers aged 21 and over, the minimum wage will rise to £12.21 per hour starting in April 2025, addressing the rising cost of living.
  • Workers aged 18-20 will receive a 16.3% increase in minimum wage, aiming to support younger earners and bridge income gaps.

Universal Credit and Fuel Duty Relief

  • The cap on debt repayments from Universal Credit will be lowered from 25% to 15% to provide financial relief for individuals repaying government debts.
  • Fuel duty will be frozen for another year, helping keep fuel costs stable despite fluctuations in oil prices.

Investments in Education

  • £2.3bn increase for core school budgets in 2025, helping schools manage rising costs and improve educational resources.
  • £6.7bn in capital investment for educational infrastructure, with £1.4bn directed towards rebuilding and upgrading school facilities.

Housing and Community Development

  • A commitment to build 1.5m new homes, backed by over £5bn in government funding to address the UK’s housing shortage.
  • £3.1bn dedicated to affordable housing initiatives to provide lower-cost options for buyers and renters.

Transport and Infrastructure Upgrades

  • Funding for HS2 will cover tunnelling work for the London Euston segment, reinforcing commitments to the high-speed rail project.
  • £500m increase in the road maintenance budget next year to improve existing road networks and enhance safety.
  • An additional £650m in local transport funding to improve connectivity between communities and support local economies.

NHS and Health Sector Funding

  • An NHS 10-year plan is expected in the spring to guide long-term healthcare investments and reforms.
  • A £22.6bn increase in the day-to-day NHS budget, the largest since 2010, to improve healthcare services and patient care.
  • The capital health budget is set to rise by £3.1bn to support facility upgrades and new healthcare infrastructure.

Environmental and Energy Initiatives

  • Windfall tax on energy companies will rise to 38%, channelling funds into public services and renewable energy initiatives.
  • Air passenger duty on private jets will increase by 50% as part of a push to reduce carbon emissions from luxury travel

 

Close