Spring Budget 2024 Summary

On 6th March 2024 Jeremy Hunt delivered the spring budget, calling it the “budget for long term growth.” The budget sees additional tax cuts and economic growth at the forefront. Want to get all the key details? Below are the key insights:

·       National Insurance contribution will be reduced by 2p, saving workers on an average employee’s salary around £450 per year. Combined with the 2p cut in autumn last year, workers will be saving £900 each year.

·       Child benefits now to be paid to households with a £60,000 highest-earning parent, changing from £50,000 previously. If the highest-earning parent earns up to £80,000, they will receive partial child benefit. It is estimated to benefit 485,000 families gaining an average of £1,260 in child benefit between 2024 and 2025.

·       People on benefits needing to take out emergency budgeting loans will be given a longer period to repay the government.

·       People particularly affected by the cost-of-living crisis to continue receiving funds from the government for a further six months. This is called the Household Support Fund, helping those more vulnerable have the necessities needed to live.

·       Introduction of a new British ISA, allowing people a £5,000 tax-free allowance to promote investment in UK-listed companies.

·       Higher rate of property capital gains tax reduced from 28% to 24%. Stamp duty removed for people buying multiple houses.

·       Growth of economy predicted to be 0.8% this year, followed by 1.9% next year.

·       Inflation, which has been an issue in recent years, expected to fall below the 2% target very soon.

·       Small businesses loan scheme lengthened to March 2026.

·       Non-dom tax regime to be replaced with a new scheme from April 2025. Originally, non-domicile status meant foreign nationals living in the UK would not pay tax on income from overseas for the first seven years living in the country. This will be changed to the first four years from April 2025 and after that they will pay the same tax as any other UK resident.

·       Fuel duty continued to be frozen for another year, saving the average driver £50 next year.

·       From October 2026 a new tax on vaping products to be introduced. The current tax on tobacco to increase further.

The budget acknowledges continued struggle of many households as a result of the cost-of-living crisis, with measures to reduce tax on working people and encourage saving. In April the National Living Wage for over-23s is also rising from £10.42 to £11.44 an hour, which hopefully increases the chance of a more stable economic future.