Spring Budget 2024

The Chancellor's Spring Budget 2024, delivered on April 5th, focused on measures to support economic growth, ease the cost of living, and invest in public services. Here's a breakdown of some key announcements:

Tax Cuts for Workers and Businesses:

• Reduced National Insurance: A significant win for employees is the reduction in National Insurance contributions. The main rate of Class 1 NICs has been cut from 10% to 8%, and the main rate of Class 4 NICs for the self-employed has seen a drop from 8% to 6%. This translates to more money in people's pockets.
• VAT Threshold Increase: The VAT registration threshold has been raised to £90,000, offering relief for many small businesses by removing the need to register for VAT.

Helping with the Cost of Living:

• Extension of Household Support Fund: To help ease the financial burden on vulnerable households, the government announced an additional £500 million for the Household Support Fund. This provides local councils with resources to offer essential cost assistance.
• Fuel and Alcohol Duty Freeze: Faced with rising inflation, the Chancellor opted to freeze fuel and alcohol duties. This provides some immediate relief for consumers.

Investment in Public Services:

• Increased NHS Funding: Recognizing the pressure on the National Health Service, the Budget allocated additional resources to the NHS to improve healthcare services.
• Early Years Funding Boost: The government committed to increased funding for early years education, promoting access to quality childcare for families.

Other Key Measures:

• Help for Working Parents: Measures were announced to support working parents, such as exploring options for more flexible work arrangements.
• Boost for Green Initiatives: The Budget included initiatives promoting investment in renewable energy and energy efficiency, supporting the transition to a greener future.

Looking Ahead:

While the Spring Budget offered some positive steps, the long-term impact on the economy and cost of living remains to be seen. It's crucial to stay updated on further developments and their potential impact on your finances.

Additional Resources:

• GOV.UK - Spring Budget 2024: https://www.gov.uk/government/topical-events/spring-budget-2024
• House of Commons Library - Spring Budget 2024: A summary: https://commonslibrary.parliament.uk/research-briefings/cbp-9979/

This blog provides a starting point for understanding the Spring Budget. We encourage you to delve deeper into the specific measures that may affect you and your financial situation.