Budget Highlights

6 March 2024

UK Chancellor, Jeremy Hunt has this afternoon announced the contents of this year's Budget in the House of Commons, which is expected to be the last budget update prior to a General Election.

Hunt started off by announcing a £1 million support fund towards a memorial for Muslims who died in the two world wars. 

The Chancellor then reflected on the recent struggles that the economy has gone through over recent months, mainly high inflation and low growth. The running theme throughout the Budget was to reverse these trends, to lower inflation and increase growth. 

Below is a summary of the main announcements:

 

Tax and Income Support

• National Insurance (“NI”) contribution for employees to go down from 10% to 8% and for self-employed to go down from 8% to 6%, therefore a 2% drop in NI contributions. 

• A ‘British ISA’ to be introduced, allowing individuals to save an extra £5,000 on top of the current ISA allowance by investing in UK equity.

• £90 debt relief order fee abolished.

• Emergency budget loan repayment time frame extended to 24 months.

• Non-domiciled tax regime will be abolished from April 2025.

 

Business

• Increase VAT registration threshold to £90k to allow more Small and Medium Enterprises (“SMEs”) to invest and grow.

• Make it easier for pension funds to invest in tech startups.  

• Plans to bolster the UK life science manufacturing industry through increased investment, pledging £360m. 

 

NHS

• Hunt agreed to fully invest £3.4bn to the NHS productivity plan in order to update IT systems.

• Plans to digitise operating theatres to increase the number of operations carried out by up to 200,000 per year.

• Update the NHS App to allow patients to confirm and modify appointments to maximise efficiency of the service.

• All hospitals will make patient records electronic. 

• Hunt then pledged an additional £2.5bn to increase overall funding to 13%.

 

Transport and energy

• The 5p fuel duty cut will be maintained for another 12 months, saving the average car driver £50 next year.

• £160m deal for UK government to purchase site of planned Wylfa nuclear project in North Wales, supporting the transition to green energy. 

• Windfall tax on oil and gas companies extended for another year until March 2029, which is set to raise £1.5bn.

 

Cigarettes, vapes and alcohol

• Alcohol duty extended to Feb 2025 benefitting up to 30,000 pubs in the UK.

• Excise duty on vaping products.

• One off increase in tobacco duty to encourage vaping over smoking.

 

Housing

• Plans to build up to 1m new homes.

• Furnished Holiday Lettings Tax regime abolished.

• Higher rate tax on house sale reduced from 28% to 24%.

• Multiple Dwellings Tax relief abolished.

 

Families

• Government reconfirmed the plan to extend 30 hour free childcare from 9 months.

• Rates paid to childcare providers guaranteed for 2 years.

• High Income Child benefit charge to increase to £60,000.

 

Hunt then ended his speech by reasserting that the goal for the government was “to bring growth up, productivity up, investment up and taxes down”.

 

Important Information

The content provided in the above publication is for information only and should not be regarded as investment advice. Professional guidance should be undertaken before engaging in any investment activity. References to tax implications and legislation are correct as at Feb 2024 but are subject to change and will be dependent on your personal circumstances.  Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (Reference Number 226344) and is a member of the London Stock Exchange. Registered Office: Old Change House, 128 Queen Victoria Street, London, EC4V 4BJ. Registered in England number 4774117. Member of Walker Crips Group plc.

 

Tax figures and legislation are correct as at 6 March 2024. Source: Gov.uk