The Chancellor of the Exchequer Jeremy Hunt made his Spring Budget 2024 announcement on 6 March 2024 these are the live highlights of the speech.
For our full summary of the budget publications see: Spring Budget 2024: At a glance
Key announcements have been: a 2% cut in NICs for employees and self-employed, abolishing the concept of Domicile, abolishing the Furnished Holiday Lettings regime, abolishing Stamp Duty Land Tax (SDLT) Multiple Dwelling Relief (MDR) and reducing the higher rate Capital Gains Tax (CGT) by 2% for higher rate taxpayer selling residential property. An increase in VAT threshold to £90k, full expensing extended to leasing, extensions of Creative Industry reliefs, a new £5k ISA, and funding for innovation zones.
The chancellor started the speech with an announcement of £1 million towards a Muslim war memorial to commemorate all those who died in the two world wars.
The UK's growth has exceeded that of EU economies [!fact check required] and unemployment has halved.
Interest rates remain high as we bring down inflation.
Families can be helped by permanent cuts in taxes.
Growth cannot come from unlimited migration.
The policies announced today will lead to lower taxes.
Inflation has come down from 11% to 4% since the Chancellor has come to office.
OBR forecast it falling below 2% target in just two months.
Households etc
- Have given average households £3,400 in the last two years.
- Universal Credit claimants will see an increase to the repayment period for new loans from 12 months to 24 months and an end to a £90 charge for debt relief orders.
- Household Support Fund to extend for six more months.
- Businesses and households to be 'helped' by a freeze in alcohol duty!
- Pubs also receive a 75% rates discount (as announced in the Autumn 2023 budget).
- Fuel duty is frozen for another six months.
Government debt is due to fall from 100% of GDP to 92% by 2028.
- GDP is expected to rise 0.8% 1.9% 2%...until 2028.
- Growth is 1.5% higher than predicted.
Investment
- Business investment has risen to 9.9% predicted to be 10% of GDP.
- Greenfield foreign investment third highest in the world.
Permanent Full Expensing gives UK an attractive tax regime
Further steps today:
- Draft legislation to extend Permanent Full Expensing to leasing.
Small business
- Small business: business rates support continues, more cash for the recovery growth scheme loans.
- The VAT registration threshold increases to £90,000 from £85,000 on 1 April 2024.
Investment in infrastructure
- Further power devolved to local areas and more funding was promised across the regions.
- Funding for village halls.
- On track to deliver one million homes.
- Plans to transform Canary Wharf into an innovation hub.
- Extra funding for Cambridge.
- Tech economy: on track to become next 'Silicon Valley'.
Savings and Investments
- Unlock more pension fund capital for British businesses.
- Make it easier for funds to invest in new technologies.
- New requirements for local and government pension fund disclosure.
- Opportunities for retail investors: sell off Nat West Shareholdings.
- The issue of a new British savings bond.
- Reform of the ISA system to encourage investment in UK assets.
- A £5,000 new UK investment ISA on top of the existing £20,000 ISA allowance.
Environment
- Great British Nuclear will have more investment.
- Investment in zero-emission vehicles.
Creative industries reliefs
- Films and audio: Increase credits by 5% and remove the 80% expense cap.
- Business Rates relief for the larger studios.
- New tax credits for low-budget (<£15m) UK independent films.
- Orchestras and performing arts touring 45% relief and non-touring productions 40% reliefs become permanent.
Life science companies: we should be manufacturing medicines.
- Announced £6m new investment by Astra Zeneca.
Staff hire
- Childcare: the current 30-hour plan will allow 60,000 parents to enter the workforce.
- New rates are to be paid to childcare providers.
Public service
A 5% increase in public sector productivity is the equivalent of £20bn.
- Growth in spending 1% but to be spent 'better'.
- Update NHS IT.
- NHS funding is 13% in 'real' terms.
Policing
- £230m rolling out new tech for policing.
- £170m to be spent on non-court resolutions.
The capacity of children's home estate to be increased.
New special free schools for special needs children.
'Lower taxes':
- Excise duty on Vaping.
- One-off increase in tobacco duty.
- One-off increase in air passenger duty.
More resources for HMRC.
Property Taxation
- Furnished Holiday Lettings regime to be abolished: it creates a distortion.
- Stamp Duty Land Tax (SDLT): the abolition of Multiple Dwelling Relief (MDR)
- Further measures: first-time buyer reliefs and purchases by local authorities mentioned by the Speaker.
- Capital Gains Tax (CGT) on residential property: Reduce the higher rate from 28% to 24% to increase the number of house sales.
Extend the UK’s windfall tax on the profits of oil and gas companies until 2029.
Non-domicile tax regime
- Reform of the domicile rules, replacing Non-dom status with new residency rules.
- Replace from April 2025, tax-free regime for the first four years of residency.
thereafter taxed on worldwide income.
Child benefit
- A reform of the Higher-Income Child Benefit Charge to end unfairness.
- Creating a household-based system from April 2026.
- Consulting on the rules for allowing HMRC to collect details of household income.
- The threshold was raised from £50,000 to £60,000 and brought the taper up to £80,000 from £60,000.
Reform of National Insurance
- Reducing the rate of National Insurance.
- From 6 April 2024:
- A cut from 10% to 8% for employees.
- A cut in Class 4 NICs from 8% to 6% affects £2m self-employed persons [fact check 2/3 of the SE?]
