Spring Budget 2024: Outcomes & Analysis

Chancellor, Jeremy Hunt, rose to the dispatch box yesterday for the most significant Budget speech of his tenure. Expectations were high, albeit that in the days leading up to the speech the Chancellor and PM were keen to downplay the “great election giveaway”.

The headline announcement of a further 2% reduction in employee National Insurance from 6 April 2024 is very significant, coming so quickly after the 2% reduction announced last November. This creates a sizeable tax reduction on salaried income, albeit that it appears a more difficult “sell” to the public.

There was much elsewhere to ponder in the Budget, with significant tax reform for Non-Domiciles and changes to the residential property rate of CGT as well as the end of multiple dwellings relief for Stamp Duty Land Tax for those working in the real estate sector.

I am left wondering if there is still time for an Autumn Statement before the next general election? By that time, inflation is predicted to be under control, interest rates may be lower, and we are likely to be out of the recession. As a result, the treasury coffers may have improved enough to be able to responsibly give further tax breaks to the hard-working electorate later in the year. We’ll have to wait and see.

Read full details of the effects of the changes on individuals and businesses across the industries here: Spring Budget Report 2024

We were left disappointed by the November Statement, but the same cannot be said for yesterday. With substantial changes announced and much to ponder plus an election due before 5 April 2025, will it all come to pass or is there more to come?

Steve Wren | Tax Partner