Budget Summary – March 2024
Jeremy Hunt delivered his much-awaited budget on 7 March. Given the upcoming election and challenging public opinion, The Government has recently been under significant political pressure to assuage voters.
The headline measure was the cut to National Insurance rates, following a similar cut already announced in November 2023. Child benefit rules are also to be overhauled, and a new British ISA allowance is set to provide tax breaks for individuals investing in UK companies.
The key points are outlined below:
The Economy
Tax
Work and Benefits
Investing
Property
Alcohol, Tobacco, & Fuel
Public Sector
Childcare
The Arts
Conclusion
The new measures will mainly benefit middle-to-high earners, along with a small boost for property owners wishing to sell.
One of the main criticisms of the NI cut is that it benefits a specific portion of the population – people who are working and earning a reasonable income. The overall tax burden on the population will continue to increase given the freeze to the allowances and thresholds, which is expected to remain in place until 2028.
Doubts have also been raised about spending plans, which, along with the NI cut, will be funded in part by higher borrowing. Public finances are tight, and it has been argued that money could be better spent on public services. However, with Labour still leading the polls, it’s possible that this will be the next government’s problem to solve.
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