As Chancellor Hunt stood up in the House Of Commons to reveal the contents of his red box – which we’ve all been hearing and reading rumours about in recent days with rather a lot of leaks-the record is now been set straight.
Check out all the latest news and views relevant to advisers in our special Budget Debrief section here on IFA Magazine.
In his Budget speech today, a somewhat lacklustre affair if we’re honest, although with lots of heckling and noisy jibing in the chamber, amongst the measures Hunt has revealed include the following:
- OBR forecasts UK inflation falling below 2% in ‘a few months time’.
- For those on Universal Credit who take out advance loans, the repayment period will be increased from 12 to 24 months.
- Debt relief orders – £90 charge abolished
- Household support charge to be continued for further 6 months
- Alcohol duty freeze extended until Feb 2025
- Fuel duty frozen for a further 12 months
- Borrowing to fall over next five years to 1.2 per cent in 2028-2029 debt falling in line with fiscal rules
- UK has ‘turned the corner on inflation’ and growth has been 1.5% higher than predicted. “We will soon turn the corner on growth’…
- OBR forecasts economic growth in 2024 of 0.8% and 1.9% in 2025 and over 2% in 2026
- Recovery loan scheme extended
- VAT reg threshold increased to £90,000 from April 1st
- Fiscal Headroom for the next govt will be £8.9bn
- New powers to Pensions Regulator and FCA re defined benefits schemes, commitment to pot for life plans to make it easier to take pension pot when switching jobs. Pension funds to report how much they invest in UK assets and international assets separately.
- Proceed with remaining Nat West share sale this summer
- Reform UK ISA system – new British ISA allowing extra £5k investment for new investment in UK assets on top of existing ISA allowances.
- To come from NS&I are new 3 year fixed rate bonds.
- Other measures for certain sectors announced including Clean Energy, Life Sciences, Theatre etc.
- Guaranteeing rates to be paid to childcare providers to encourage 60k parents back into workforce
- Public service spending to increase 1%pa in real terms
- NHS productivity plan with big investment in IT for the health service of £3.5bn
- Build 50 new special free schools
- Reform to Treasury public service investment decisions
- Duty on vaping from Oct 26 and tobacco duty increased then
- Changes to Air passenger duty for people travelling business class
- Holiday lets – as was rumoured – abolished furnished holiday lettings regimes. Multiple dwellings relief to be abolished.
- On property CGT, higher 28% rate reduced to 24% to ‘bring in more revenue’
- Extend sunset on energy profits levy to 2029
- Non Doms – abolish current system for Non Doms and replace with a ‘residency based system’ from April 2025 for first 4 years with tax on worldwide income and gains after 4 years.
- HICBC – reform to tax system for childcare benefit – to consult on a new household based system by 2026. From this April threshold to rise to £6ok plus upper rate will rise to £8ok lose £1 for every £2 above £60k. Probably the rabbit out of the hat that hadn’t been leaked beforehand.
- NICs cut by 2% as confirmed earlier this morning – for both employed and self employed.
With many analysts now doing some serious number crunching, there will continue to be all the post budget analysis on IFA Magazine in our Budget section so please follow us there – and do look out for our Budget Special Podcast out tomorrow afternoon.
