Have your say! Does the 2024 Budget give a boost to working people?
The wait for the new Labour government's first Budget in 15 years has finally ended. The contents of the plans for the upcoming year, which have been a source of controversy and backlash for months, were revealed today.
Have your say! What are the best and worst parts of Labour's first Budget for 15 years? Comment below, and join in on the conversation below.
Prime Minister Keir Starmer was firm in his stance that any Budget announcements would not directly affect the wages of working individuals. Chancellor Rachel Reeves upheld the election pledge that there would be no increase in the basic, higher or additional rates of income tax, national insurance, or VAT.
READ MORE:Leicester MP welcomes 'wealth-creating' budget announcements
The current state of affairs on the roads will largely remain unchanged, with the Chancellor maintaining the fuel duty freeze that has been a standard policy over the last decade.
The thresholds for carer's allowance will see an increase, raising the amount a carer can earn while caring for a family member before their carer's allowance benefit is withdrawn. This figure will now stand at over £10,000 annually, addressing a problem that has plagued carers for a long time.
The employer's contribution to national insurance, which is the money businesses pay on their employees' earnings, will rise - making it the biggest tax-raising measure in today's Budget. This may disappoint businesses as it could eat into profits or limit future wage increases, but small businesses will receive some relief from this.
Changes to smoking, vaping, and drinking are on the horizon as a result of this Budget. A one-off tax hit will be applied to tobacco products with additional increases, and for the first time, vaping liquid will be taxed.
The duty on wines and spirits is set to rise - however, there will be a reduction in tax on a pint at the pub due to a decrease in draught duty. This has been met with caution by businesses, particularly pubs and hospitality establishments that are already under strain.
Retail, hospitality and leisure businesses can expect a 40% relief on their rates. However, many have been benefiting from larger discounts recently, so today's announcement may be a mixed blessing.
These measures, along with others in a heavy tax-raising budget, will be directed towards public services and addressing what the Chancellor referred to as a £22 billion "black hole" in the public purse. Billions will be allocated to hiring teachers, investing in further education, and tripling the funding for breakfast clubs in schools.
Affordable housing will also see an increase in funding, alongside hundreds of millions directed towards social care and homelessness schemes in local areas. To offset the impact of the new £3 bus fare announced this week, £650 million will be invested in public transport nationwide.
Road maintenance budgets will also receive a boost, keeping in line with the election promise to "fix 1 million potholes".
A significant portion of the increased tax will be directed towards the NHS, which has endured a challenging decade marked by escalating waiting times and antiquated equipment and systems.
Have your say! What are the best and worst parts of Labour's first Budget for 15 years? Comment below, and join in on the conversation below.