{"id":2202,"date":"2024-11-08T10:04:11","date_gmt":"2024-11-08T10:04:11","guid":{"rendered":"https:\/\/www.rnm.in\/blog\/?p=2202"},"modified":"2025-01-30T10:55:39","modified_gmt":"2025-01-30T10:55:39","slug":"uk-budget-2024-highlights","status":"publish","type":"post","link":"https:\/\/www.rnm.in\/blog\/uk-budget-2024-highlights\/","title":{"rendered":"UK Budget 2024 Highlights"},"content":{"rendered":"

Reeves’s Opening Remarks: Setting the Stage for National Renewal<\/span><\/h2>\n

Rachel Reeves has announced her vision for a decade of “national renewal,” following the mandate for change that the UK electorate granted the Labour government. With the goal of putting “more pounds in people’s pockets” and raising living standards, Reeves emphasizes the need for an “invest, invest, invest” approach to drive economic growth. Highlighting Labour’s past achievements in rebuilding the economy, she pledges that they will “rebuild Britain once again.” This budget, she notes, will raise taxes by \u00a340 billion\u2014a bold move that she believes is necessary to reverse years of economic decline under Conservative leadership.<\/span><\/p>\n

National Insurance Adjustments<\/span><\/h3>\n

A significant policy shift in this budget is the increase in employers\u2019 national insurance contributions, rising by 1.2 percentage points to 15% starting April 2025. Additionally, the threshold for contributions will be reduced from \u00a39,100 to \u00a35,000. Expected to raise \u00a325 billion annually by the forecast period\u2019s end, this measure represents the most substantial tax increase in the budget.<\/span><\/p>\n

Income Tax and Personal Allowances<\/span><\/h3>\n

Addressing income tax, Reeves confirms that tax thresholds will align with inflation beginning in 2028-29, which prevents an inadvertent drag of individuals into higher tax brackets. This step allows Reeves to affirm Labour\u2019s commitment to not increasing taxes on working people.<\/span><\/p>\n

Capital Gains and Inheritance Taxes<\/span><\/h3>\n

Capital gains tax will see moderate increases, with the lower rate rising from 10% to 18% and the higher rate from 20% to 24%, though rates on the sale of second homes remain unchanged. Furthermore, the inheritance tax threshold freeze will extend until 2030, while pension pots inherited from 2027 onwards will be taxed. This policy reform aims to raise \u00a32 billion annually through various tweaks, especially on business and agricultural assets.<\/span><\/p>\n

Raising the Minimum Wage<\/span><\/h3>\n

In line with Labour\u2019s commitment to improve livelihoods, the \u201cnational living wage\u201d will rise by 6.7% to \u00a312.21 per hour, adding approximately \u00a31,400 per year to the earnings of a full-time worker. There is also a plan to equalize wages for workers under 21 over time.<\/span><\/p>\n

Tobacco, Alcohol, and Fuel Duty Adjustments<\/span><\/h3>\n

Reeves announced increased taxes on tobacco, vapes, and sugary drinks, but as a gesture to pub-goers, there will be a 1p reduction in the duty on draught pints. Fuel duty remains frozen for another year, maintaining the last government\u2019s 5p reduction to address rising costs due to international tensions.<\/span><\/p>\n

VAT on Private School Fees<\/span><\/h3>\n

Starting January 2025, VAT will be applied to private school fees, a policy expected to be widely accepted due to its popularity among voters.<\/span><\/p>\n

Investment in Education<\/span><\/h3>\n

The budget allocates \u00a36.7 billion to capital investment in education, a 19% real-terms increase. This funding will help rebuild over 500 schools in urgent need of repair, support hiring teachers, and expand higher education funding.<\/span><\/p>\n

Commitment to NHS and Public Health<\/span><\/h3>\n

Reeves announced a \u00a322.6 billion increase for the NHS\u2019s daily operations, alongside a \u00a33.1 billion capital boost. This includes \u00a31 billion for repairs and upgrades and \u00a31.5 billion to expand hospital beds and testing capacity.<\/span><\/p>\n

Housing Investment<\/span><\/h3>\n

Labour aims to tackle the housing crisis with a \u00a35 billion investment in housing in 2025-26. Local governments will retain earnings from council house sales, enabling reinvestment. New planning officers will also be hired to accelerate housebuilding.<\/span><\/p>\n

Transport and Infrastructure<\/span><\/h3>\n

Reeves reaffirmed Labour’s commitment to regional rail routes and confirmed HS2\u2019s extension to London Euston. There will also be a \u00a3500 million increase in the roads budget, primarily targeting pothole repairs.<\/span><\/p>\n

Energy and Public Investment<\/span><\/h3>\n

Reeves announced \u00a33.4 billion for home upgrades to reduce energy bills and established Great British Energy, a new entity based in Aberdeen. She has also introduced rules to ensure debt reduction over time, linking investment to the quality of public services.<\/span><\/p>\n

Tax on Private Jets<\/span><\/h3>\n

Air passenger duty on private jets will increase by 50%, while short-haul flights will face a slight tax hike. This move, coupled with a quip about flights to California, serves as a reminder of Labour\u2019s focus on fairness and environmental responsibility.<\/span><\/p>\n

Supporting Business and the Economy<\/span><\/h3>\n

The budget will permanently reduce business rates for retail, hospitality, and leisure sectors starting in 2026-27, with a 40% relief until then. Employment allowance will also increase, lowering national insurance for small businesses. Additionally, taxes on carried interest and oil profits will rise, and the concept of non-domicile status will be abolished.<\/span><\/p>\n

Compensation for Past Scandals<\/span><\/h3>\n

Reeves announced compensation schemes for the infected blood and Post Office Horizon IT scandals, allocating \u00a311.8 billion and \u00a31.8 billion respectively. This move is aimed at addressing injustices that previous governments had apologized for but not financially addressed.<\/span><\/p>\n

Targeting Tax Avoidance<\/span><\/h3>\n

Reeves pledges to raise \u00a36.5 billion by cracking down on tax avoidance schemes, particularly those involving umbrella companies.<\/span><\/p>\n

Conclusion: Investing in Britain\u2019s Future<\/span><\/h2>\n

Rachel Reeves\u2019s budget marks a bold shift toward increased public investment and social welfare. She outlined policies aimed at stabilizing the economy, building infrastructure, and improving public services, all while targeting fairer wealth distribution and transparency. Labour\u2019s new fiscal approach, with heightened spending on health, education, housing, and infrastructure, seeks to rejuvenate a weary nation and position it for long-term prosperity.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Reeves’s Opening Remarks: Setting the Stage for National Renewal Rachel Reeves has announced her vision for a decade of “national renewal,” following the mandate for change that the UK electorate granted the Labour government. With the goal of putting “more pounds in people’s pockets” and raising living standards, Reeves emphasizes the need for an “invest, invest, invest” approach to drive […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[142],"tags":[],"class_list":["post-2202","post","type-post","status-publish","format-standard","hentry","category-united-kingdom"],"yoast_head":"\nUK Budget 2024 Highlights - RNM India Blogs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rnm.in\/blog\/uk-budget-2024-highlights\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK Budget 2024 Highlights - RNM India Blogs\" \/>\n<meta property=\"og:description\" content=\"Reeves’s Opening Remarks: Setting the Stage for National Renewal Rachel Reeves has announced her vision for a decade of “national renewal,” following the mandate for change that the UK electorate granted the Labour government. 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