Does the 2024 Budget give a boost to working people?
The long-anticipated first Budget of the new Labour government, after a 15-year wait, has finally been unveiled. Amid months of controversy and backlash over potential plans for the upcoming year, all has been revealed.
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.
Prime Minister Keir Starmer had firmly stated 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.
The current state of affairs on the roads will largely remain unchanged, with the Chancellor maintaining the fuel duty freeze that has become 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raising the amount a carer can earn while caring for a family member before their carer's allowance benefit is withdrawn.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 will now equate to over £10,000 annually, addressing a problem that has plagued carers for years.
The employer's contribution to national insurance, which is the money paid by companies on their employees' earnings, will rise - marking the biggest tax-raising measure of today's Budget. This may disappoint businesses as it could eat into profits or limit future pay increases, however, small businesses will receive some relief from this.
This Budget will bring about changes to smoking, vaping, and drinking. A one-off tax hit will be imposed on 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 caused concern among businesses, particularly pubs and hospitality establishments that are already under strain.
Retail, hospitality and leisure businesses will benefit from a 40% relief on their rates, although many have been receiving larger discounts recently, so today's announcement may be a mixed blessing.
These measures, along with others in a budget heavy on tax increases, will be directed towards public services and addressing what the Chancellor referred to as a £22 billion "black hole" in the public purse. Billions of pounds will be allocated to hiring teachers, investing in further education, and tripling the funding for school breakfast clubs.
Affordable housing will also see an increase in funding, along with hundreds of millions directed towards social care and local homelessness schemes. To mitigate 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, fulfilling 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.