Chancellor Jeremy Hunt to Deliver 2024 Budget: What to Expect
Chancellor Jeremy Hunt is gearing up to deliver his highly anticipated 2024 Budget on Wednesday, 6th March. He has hinted at potential tax cuts, but assures the public that these measures will be implemented in a responsible manner.
Chancellor Jeremy Hunt is gearing up to deliver his highly anticipated 2024 Budget on Wednesday, 6th March. He has hinted at potential tax cuts, but assures the public that these measures will be implemented in a responsible manner.
What is the Budget?
Every year, the Chancellor of the Exchequer takes center stage in the House of Commons to deliver the Budget statement. This crucial address outlines the government's plans regarding tax adjustments and spending on essential public services like health, education, and law enforcement. The Office for Budget Responsibility (OBR) provides an independent evaluation of these plans.
Labour leader Sir Keir Starmer will promptly respond to Chancellor Hunt's Budget proposals. Following this, Members of Parliament will engage in debates to scrutinize the contents of the Budget, culminating in the introduction of a Finance Bill to enshrine these proposals into law.
When and Where to Watch the 2024 Budget
The Chancellor's speech is scheduled to commence around 12:30 PM UK time and typically runs for about an hour. This significant event will be broadcast live on the BBC iPlayer and the BBC news website, ensuring widespread accessibility for viewers across the nation.
Anticipated Highlights of the 2024 Spring Budget
National Insurance
Speculation abounds that the government may opt to slash National Insurance (NI) rates instead of income tax rates. Reports suggest a potential 2p reduction in NI, building upon the 2p cut announced in the 2023 Autumn Statement. The self-employed can also expect a forthcoming drop in NI rates come April.
Income Tax
Contemplating a 1p decrease in the main income tax rate comes with a hefty £7bn price tag, as per the Resolution Foundation. Alternatively, the government could allocate similar funds to lift the current freeze on the income threshold for tax payments or higher tax rates. Notably, both the International Monetary Fund (IMF) and the Institute for Fiscal Studies (IFS) have cautioned against reckless tax cuts.
Childcare
Acknowledging existing disparities, the government has hinted at revising child benefit rules. Currently, families with joint earnings exceeding £50,000 face reductions in child benefit, prompting discussions on potentially raising the income threshold to rectify this imbalance.
Vaping
In a bid to curb vaping-related concerns, the UK is set to ban disposable vapes and mull over the introduction of a new vaping tax. While vaping products already incur value-added tax (VAT), the absence of a distinct levy akin to tobacco products may change soon.
Fuel Duty
Since 2011, fuel duty rates have remained stagnant, and indications point towards a continuation of this freeze. Additionally, the extension of a 5p-per-litre fuel duty cut, slated to conclude in March 2024, is likely to be on the cards.
Air Passenger Duty
A potential hike in Air Passenger Duty for business class travelers looms on the horizon, with varying rates based on flight distances and ticket classes.
Non-Dom Tax Status
The government is contemplating scrapping the "non-dom" tax status utilized by individuals residing in the UK but declaring their primary tax residence elsewhere. This move could potentially generate £3.6bn annually, according to research by the London School of Economics and the University of Warwick.
Oil and Gas Windfall Tax
Following the Energy Profits Levy's successful implementation in 2022, reports suggest a potential extension of this tax on oil and gas companies, expected to run until March 2028.
Holiday Lets
Heightened scrutiny on holiday lets may feature in the Budget, with proposed controls in England aimed at safeguarding housing affordability for local residents. Owners may soon require council approval to rent out their properties.
99% Mortgages
Rumors of the chancellor introducing 99% mortgages could offer first-time buyers a more accessible pathway to homeownership with just a 1% deposit. However, concerns have been raised regarding potential risks associated with falling property values.
Economic Outlook and Impact
Despite the recent recession that gripped the UK economy, there are signs of a potential turnaround, as indicated by Bank of England governor Andrew Bailey. Nevertheless, many households continue to grapple with financial challenges amidst rising prices, underscoring the importance of prudent fiscal decisions in the upcoming Budget.
Regional Implications of the Budget
While certain Budget allocations impact the entire UK, some areas like education and healthcare exclusively pertain to England. Scotland, Wales, and Northern Ireland possess autonomy in determining specific spending decisions. Any additional funding allocated to England-only sectors prompts equivalent financial injections into the other nations. Notably, Scotland maintains the authority to set distinct income tax rates, diverging from the rest of the UK.
In conclusion, Chancellor Hunt's imminent Budget announcement is poised to shape the country's economic landscape, with a mix of tax adjustments and spending priorities set to influence various sectors. Stay tuned for comprehensive coverage and analysis following the Budget reveal on Wednesday.
Hey, I'm Fateh Muhammad, a Lahore local with a passion for arts and politics. My journey led me through the halls of the National College of Arts, where I delved into the intricacies of both disciplines. Now calling Lahore home, I'm here to share my insights and perspectives on the dynamic intersection of art and politics. Let's embark on this enlightening journey together! Connect With Me .