Budget 2024 Summary: The Key Points

The Chancellor has revealed today the contents of the Autumn 2024 Budget in the House of Commons

Here is a summary of the key information:

Business Taxes

• Businesses to pay National Insurance on workers’ earnings higher than £5,000 from April, down from £9,100, with rates increasing from 13.8% up to 15%
• Employment allowance – allowing companies to reduce their National Insurance liability by £5,000 to £10,500
• Tax paid by private equity managers on share of profits from successful deals to rise from up to 28% to up to 32% from April
• Corporation tax paid by businesses on taxable profits over £250,000 is set to remain at 25% until the next election.

Personal taxes

• Freeze on income tax and National Insurance thresholds to end in 2028, stopping people from being pushed into higher tax brackets as their wages increase
• Capital gains tax paid on profits from selling shares are set to increase from up to 20% to up to 24%
• Freeze on inheritance tax thresholds extends from 2028 to 2030

Transport

• 5p cut to fuel duty on diesel and petrol which was set to end in April 2025, kept for another year
• Air Passenger duty on flights by private jet set to go up 50%
• Vehicle Excise Duty (VED) is set to remain as low as £10 for electric vehicles. Plug-in hybrids and ICE vehicles producing 1-50 g/km of carbon dioxide are set to see a ten fold rise in road tax
• Tax incentives rates remain for electric vehicles, with plug-in hybrid and ICE vehicles set to see a hike in company car tax up to 2030

Housing

• Affordable homes budget boosted by £500m, running until 2026
•  Social housing providers allowed to increase rents above inflation
• Stamp duty surcharge, paid from purchasing second homes in England and Northern Ireland, going up from 3% to 5%

Inflation and predicted economic growth

•  Office for Budget Responsibility (OBR) forecasts UK economy will grow by 1.1% this year, followed 2% next year, and 1.8% in 2026
•  Inflation is predicted to average 2.5% this year, 2.6% in 2025, and 2.3% in 2026

Government spending and public services

• £6.7 billion allocated for investment into education next year, with £1.4 billion put aside for rebuilding more than 500 schools

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