The Chancellor Jermey Hunt delivered his budget in an hour-long speech, that began with interruption from opposition MPs and warning issued to the house by the deputy speaker, One of the key announcements by the chancellor was a further two percent cut in national insurance.
As Jeremy Hunt delivered his speech warnings that his tax cut plans bring “significant risks”, have been made by the Office for Budget Responsibility (OBR) who issued its warning over the statement as it revealed the average worker on a £35,000 salary will be £383 worse off over this year and the next due to stealth tax rises.
The roundup of today’s Budget 2024 key announcements are:
• National insurance contributions for employees are to be cut from 10% to 8% from April - impacting about 27 million workers - with savings of up to £450 a year. Self-employed NI rates will drop by two percentage points as well.
• The non-dom tax status has been abolished. Meaning foreign nationals who live in the UK, but are officially domiciled overseas, will no longer be able to avoid paying UK tax on their overseas income or capital gains. A new "simpler" residency-based system will be created in 2025.
•Higher rate of property capital gains tax will be reduced from 28% to 24%.
• The furnished holiday lettings regime has been abolished because it created "a distortion meaning that there are not enough properties available for long-term rental by local people".
• Stamp duty relief for people who purchase more than one dwelling in a single transaction, known as Multiple Dwellings Relief, is scrapped.
• Air passenger duty will be raised for non-economy class plane passengers.
• The energy profits levy - the windfall tax on UK-produced oil and gas - is extended to 2029.
• The High Income Child Benefit Charge, which hits payments if one parent earns above £50,000 a year, is to move to a household-based system. The threshold will rise to £60,000 from April in the meantime. The upper level where it is withdrawn is raised to £80,000.
• The household support fund is extended for a further six months.
• Repayment periods for people on low incomes who take out new budgeting advance loans will increase from 12 to 24 months.
• The £90 charge to get a debt relief order is abolished.
• To help people save, a new British Savings Bond, delivered through NSNI, will offer a guaranteed rate fixed for three years.
• A new British ISA will allow a £5,000 annual investment into in UK businesses.
• Duty will be introduced on vaping liquids for the first time in October 2026. A one-off increase in tobacco duty will be made.
• Alcohol duty freeze has been extended until February 2025.
• No change to fuel duty, with 5p cut announced in March 2022 still in place.
• VAT registration threshold for businesses upped from £85,000 to £90,000
• NHS to get additional £2.5bn this year to tackle issues including waiting lists.
Then select "Add to Home Screen"
