Tell us if 2024 Budget gives a boost to working people
The anticipation for the new Labour government's first Budget in 15 years has finally come to an end. There has been a whirlwind of controversy and backlash over the potential contents of the plans for the upcoming year, but today everything was 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 below.
Prime Minister Keir Starmer had been unwavering in his stance that any Budget announcements would not directly affect the wages of working individuals. Chancellor Rachel Reeves validated the election pledge that there would be no increase in the basic, higher or additional rates of income tax, national insurance, or VAT.
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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raising the amount a carer can earn whilst caring for a family member before their carer's allowance benefit is withdrawn. This will now equate to over £10,000 annually, providing some relief to 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 see an increase - marking the largest 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 respite from this.
Changes to drinking, smoking, and vaping, are on the horizon as a result of this Budget. The duty on wines and spirits is set to rise - however, there will be a decrease in tax on a pint at the pub due to a reduction in draught duty. This has caused concern among businesses, particularly pubs and hospitality establishments that are already under strain.
A one-off tax hit will be applied to tobacco products with additional increases, and for the first time, vaping liquid will be taxed.
Retail, hospitality and leisure businesses can expect 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 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 of pounds 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 across the country.
Road maintenance budgets will also receive a boost, aligning with the election promise to "fix 1 million potholes".
A significant portion of the increased tax will be directed towards the NHS, an institution that 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.