31 October 2024
This budget also signified the first Labour budget in 14 years, ushering in a new economic agenda aimed at dismantling the previous government's policies and setting a new course for the future.
In her speech, Chancellor Reeves emphasized the importance of breaking barriers for girls and young women in achieving their aspirations. The budget, titled 'Fixing the foundations of our economy,' aims to end austerity while prioritizing the protection of working individuals, enhancing the NHS, and revitalising Britain's economy.
The unveiling of the budget proposals followed extensive speculation and public opinion testing, culminating in a bold £40bn tax-raising plan designed to address a £22bn economic deficit inherited from the previous government. Chancellor Reeves focused on taxing wealth rather than burdening working individuals with income tax, national insurance contributions, or VAT increases.
Key measures include raising capital gains tax rates immediately, increasing Stamp Duty Land Tax for landlords and second homeowners, closing inheritance tax loopholes, and freezing income tax thresholds until 2028/29. The budget also includes a substantial increase in the National Living Wage and adjustments to employer national insurance contributions.
To support the NHS and infrastructure development, the Chancellor has redefined fiscal rules to allow for increased borrowing and investment in capital spending. Additional provisions in the budget address frozen petrol duty rates, reduced pub liquor duties, and lower business rates for certain sectors.
While the budget brings structural changes and financial implications for various stakeholders, it also presents opportunities for estate planning and tax management. Individuals with complex financial affairs are advised to review their strategies considering the budget's impact.
Overall, Chancellor Reeves' debut budget represents a major shift in economic policy, aiming to balance fiscal responsibility with investments in key sectors to drive growth and prosperity.
For more detailed information, you can access the full autumn statement here.
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