John Healey delivered his much anticipated first Budget yesterday. It contained the usual repertoire of inherited issues and tax increases amongst quite a bland set of technical announcements.
The headlines were:
- Cash ISAs: the £20,000 allowance is retained for the under 65s as well as those over, with the planned reduction abandoned.
- Savings and property income: tax rates rise to 24%, 44% and 49% from April 2027.
- State Pensions tax: a targeted Pension Tax Allowance starts in April 2027, alongside changes to State Pension uprating from 2030.
- Business owners: proposed 10% Founders’ Relief for qualifying gains, while the Business Asset Disposal Relief lifetime limit falls to £500,000 from April 2027.
Please see our link to The Autumn Budget Summary 2024 delivered by the Chancellor, Rachel Reeves, on Wednesday 30 October 2024
In presenting Labour’s widely anticipated first Budget in 14 years, the Chancellor was faced with a challenging task. Following her announcement of a “black hole” in the public finances, the need to renew the Treasury’s coffers while maintaining Labour’s manifesto promises seemed a tall order.
In the event Ms Reeves outlined a programme of around £41 billion worth of tax increases over the next five years, alongside plans to rebuild tottering infrastructure, the health service, schools and more. Any idea of a return to austerity was quashed, but how this will be achieved is very much in the detail.
In what was widely expected to be Mr Hunt’s final Budget ahead of an election, speculation focused on the trade-offs that might be required around cutting taxes and meeting both fiscal rules and spending commitments.
Ultimately the Chancellor had it both ways, with some headline grabbing measures aimed at easing the tax burden on earners and families, while also introducing some tax increases to cover their costs.
Our summary is on the right for download.
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