Budget 2024: The key announcements in Chancellor Rachel Reeves' speech | Politics News

Chancellor Rachel Reeves has finally presented the budget for 2024. Here are the most important points:

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• The budget increases Steer around 40 billion pounds.

• Social security contributions for employers (not employees) will be increased by 1.2 percentage points to 15% from April 2025.

The point at which employers start paying NI will fall from £9,100 per year to £5,000 per year. This raises £25 billion a year.

• The lower rate of Capital Gains Tax (CGT) when selling assets will increase from 10% to 18%. The higher rate will rise from 18% to 24%. CGT on residential property sales will also rise from 18% to 24%.

• Tax thresholds will rise, meaning the point at which people pay higher taxes will be raised. These tax bands had been frozen. However, this freeze will end in 2028 and the bands will be increased in line with the inflation rate.

• Freezing is on Inheritance tax will continue for another two years until 2030. This means the first £325,000 can be inherited tax-free, up to £500,000 if the estate passes to direct descendants and £1 million if it passes to a surviving spouse or civil partner.

• Health and employment services for people who are disabled and long-term ill will receive funding of £240 million.

• The Minimum wage for people aged 21 and over rises by 6.7% to £12.21 per hour. This equates to £1,400 per year for a full-time employee. For workers aged 18 to 20, the minimum wage will increase by 16.3% to £10 an hour.

• People can now earn £10,000 or more when making claims Care allowance. This means an additional £81.90 for those who are newly eligible.

• The Household Aid Fund receives £1 billion to help people in financial difficulty cover the cost of essentials.

• Companies will receive an increase employment allowance, It means 65,000 employers will pay no national insurance at all next year and the grant will rise from £5,000 to £10,500. This means that more than a million companies will have to pay the same or less than before.

• Business rates relief will fall from the current 75% to 45% for retail, leisure and hospitality businesses.

• The everyday NHS The budget will be increased by £22 billion.

• This will enable 40,000 extra hospital appointments and treatments every week and provide £1.5 billion for new hospital beds.

• The local government will receive funding worth “at least” £600 million Social welfare.

• A £5 billion investment Housingincreasing the affordable homes program to a budget of £3.1 billion.

• In addition, £1 billion will be spent on eliminating hazardous substances disguiseImplementing the results of the Grenfell Inquiry.

• Fuel tax will be frozen this year and next, maintaining the existing 5p cut.

• A cut to Alcohol tax withdrawal of 1.7%, which could make drinks 1p cheaper.

• The tax on tobacco will rise at the rate of inflation plus an additional 2%. There is also a 10% surcharge on roll-your-own tobacco.

• There will be a new flat tax on everything evaporating liquid from next October.

• VAT will be introduced on Private School Fees from January 2025 and the business rates relief for private schools will be removed from April 2025.

• About 500 Condition Schools Old buildings that are no longer fit for purpose will be rebuilt at a total cost of £1.4 billion. An additional £300 million will be allocated to school maintenance each year, covering RAC concerns.

• The budget for free school breakfast clubs will triple to £30 million in 2025 and 2026. The core budget for Schools will also rise by £2.3 billion next year.

• A £300 million investment for Continuing education and £1 billion for it Children with special educational needs (SEN).

• The HS2 The rail link between Old Oak Common in west London and Birmingham has been confirmed. Tunneling work will also begin to extend the line to London Euston.

• Airline passenger Mandatory on private jets will rise by 50%, equivalent to £450 per passenger.

• The yearbook defense The budget will fall below 2.5% of GDP next year – with a £2.9bn increase for the Ministry of Defense.

• A £3 billion a year commitment to Ukraine for “as long as it takes”.

• Public Finance There will be a surplus and no deficit through the 2027-2028 fiscal year. The government claims this means stability will be achieved two years earlier than planned.

• The Office for Budget Responsibility (OBR) forecasts GDP growth in the UK 1.1% in 2024, 2.0% in 2025, 1.85% in 2026, 1.5% in 2027, 1.5% in 2028, 1.6% in 2029.

• The OBR expects Public sector net borrowing It is expected to reach £105.6bn in 2025-26, £88.5bn in 2026-27, £72.2bn in 2027-28, £71.9bn in 2028-29 and £70.6bn in 2029-30. be £.

• The price of non-alcoholic drinks will rise, with the beverage levy increasing each year in line with inflation. The measure will raise almost £1 billion a year.

• Government agencies A productivity, efficiency and savings target of 2% is set for next year. This will be achieved through “more effective use of technology and the bundling of government services”.