Budget 2024: Key points at a glance

30 October 2024, 14:30 | Updated: 30 October 2024, 14:40

Key point of Rachel Reeves's budget
Key point of Rachel Reeves's budget. Picture: Global

By StephenRigley

Here are the main points from Chancellor Rachel Reeves' Budget:

Listen to this article

Loading audio...

- The Chancellor has raised taxes by £40 billion. "Any chancellor standing here today would face this reality, and any responsible chancellor would take action," Ms Reeves said.

- Among the measures are a 1.2 percentage point increase for employers' national insurance contributions to 15 per cent in April 2025. The threshold for paying them will fall from £9,100 per year to £5,000.

- The headline rates of capital gains tax will increase, with the lower rate rising from 10 per cent to 18 per cent and the higher rate from 20 per cent to 24 per cent.

- The stamp duty land tax surcharge for second homes will increase by two percentage points to five per cent, and will come into effect from Thursday, the Chancellor added.

Rachel Reeves and her Treasury team in Downing Street
Rachel Reeves and her Treasury team in Downing Street. Picture: Getty

Read More: Rachel Reeves raises employers' National Insurance contributions by 1.2% as Budget sees taxes rise by £40bn

Read More: Rachel Reeves extends fuel duty freeze at Budget as Chancellor vows 'no higher taxes at petrol pumps next year'

- She also confirmed changes to inheritance tax. This includes bringing pension pots within the tax from April 2027 and reforms to agricultural and business property reliefs, raising a total of £2 billion a year.

- On personal taxes, the Government will not extend the freeze on income tax and national insurance thresholds beyond 2027/28, saying it would "hurt working people" to keep thresholds frozen.

- The Chancellor said that national insurance, VAT or income tax will not increase for working people in this Budget. "I say to working people: I will not increase your national insurance, your VAT, or your income tax," Ms Reeves said.

- The national minimum wage will rise by 6.7 per cent to £12.21 an hour after asking the Low Pay Commission to take the "cost of living" into account. The Government will move to a single level of the minimum wage, the Chancellor said, which will mean a flat rate for those 18 and above.

- A "flat rate duty" on vaping liquid will be introduced from October 2026. Taxes will also increase on tobacco. Meanwhile draught duty on alcoholic drinks will fall by 1.7 per cent, meaning "a penny off a pint in the pub".

Rachel Reeves delivers her budget
Rachel Reeves delivers her budget in the House of Commons. Picture: social media

Read More: Rachel Reeves confirms 6.7% increase in National Living Wage in move to 'protect working people'

Read More: LIVE: Rachel Reeves reveals taxes will rise by £40bn as she vowed to 'invest, invest, invest' in historic budget

- The 5p cut to fuel duty will be kept into next year, with Ms Reeves saying it would be the "wrong choice" to increase it. She said keeping the cut and freezing it again will cost £3 billion.

- Ms Reeves reiterated the Government's commitment to the pension triple lock, telling the Commons the basic and new state pension will rise by 4.1 per cent in 2025-26.

- The weekly earnings limit for carers allowance will rise to the equivalent of 16 hours a week at the national living wage, the largest increase since the allowance was introduced.

- The Government will set aside £11.8 billion to compensate those affected by the infected blood scandal and £1.8 billion to compensate victims of the Post Office Horizon scandal.

- On public services, the Chancellor said there will be "no return to austerity".

- Ms Reeves announced a £22.6 billion increase in the day-to-day health budget as well as a £3.1 billion increase in the capital budget, which she called the "largest real-terms growth in day-to-day NHS spending outside of Covid since 2010".

- Defence spending will rise by £2.9 billion next year, and provide £3 billion of support to Ukraine each year.

- The Chancellor has announced £1.4 billion to rebuild more than 500 schools as part of a 19 per cent real-terms increase in the Department for Education's capital budget, along with £2.1 billion for school maintenance.

- The core schools budget will rise by £2.3 billion next year, with an extra £1 billion funding increase to special educational needs provision. Investment in breakfast clubs will be tripled, Ms Reeves added.

- HS2 will be brought to Euston Station in London, Ms Reeves confirmed. She said she would commit "the funding required" to begin tunnelling work.

- Rail links will be upgraded between York, Leeds, Huddersfield and Manchester.

- Local government will get an "significant real-terms funding increase", with £1.3 billion of extra grant funding next year to deliver "essential services," Ms Reeves announced.

- The Government will invest more than £5 billion in housebuilding, and £1 billion of funding to remove dangerous cladding next year.

- Ms Reeves said she is setting a "2 per cent productivity, efficiency and savings target" for all Government departments next year.

- The Government hopes to raise £6.5 billion by giving HMRC new technology and hiring extra staff to crack down on £6.5 billion in unpaid taxes.

- The Chancellor went on to say she will reduce fraud in the welfare system by hiring new members of the Department for Work and Pensions counter-fraud teams. It will save £4.3 billion a year by 2029.

- Regions in Scotland and Northern Ireland will get new growth deals, and devolved nations will get the largest real-terms funding amount since devolution. Scotland will get an extra £3.4 billion, Wales will get £1.7 billion, and £1.5 billion for Stormont in Northern Ireland.

- On inflation, ministers will maintain the MPC's (Bank of England's Monetary Policy Committee) target of two per cent , as measured by the 12-month increase in the Consumer Prices Index.

- Ms Reeves said the OBR has forecast that CPI inflation will average 2.5% this year, 2.6% in 2025, then 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2% in 2029.

- The Chancellor said Government borrowing for this year is expected to reach £127 billion.

- Public sector net borrowing will be £105.6 billion in 2025-26 and drop each year to £70.6 billion in 2029-30.

- She added the current budget will be in deficit by £26.2 billion in 2025-26 and £5.2 billion in 2026-27, before moving into surplus of £10.9 billion in 2027-28, £9.3 billion in 2028-29 and £9.9 billion in 2029-30, meeting the Government's "stability rule" two years early.

More Latest News

See more More Latest News

Ian Airlie, 48, was found dead at his home in Greenwich on October 10

London man, 48, found dead at home after falling down tube escalator was involved in 'very sad and unfortunate accident'

Coercive or controlling behaviour has been placed "on a par" with other domestic abuse offences such as physical violence, as part of a new law aiming to tackle the issue.

Coercive or controlling behaviour now ‘on par’ with domestic abuse in bid to protect abuse victims

Exclusive
The Scottish Animal Welfare Commission (SAWC) has called for a ban on cat ownership

'Cats should be kept indoors', claims PETA following proposed ban on feline pets

Prince Louis has taken this photo of his mother the Princess of Wales

Kate shares new image taken by Prince Louis to mark World Cancer Day

Sir Keir Starmer has said the UK will not be “choosing between” the European Union and the United States

Britain will not choose between EU and US, says Starmer following Trump's tariff threats

Donald Trump won’t impose tariffs on Mexico for another month after a ‘constructive conversation’ which will see Mexico reinforce its side of the border with the US.

US trade tariffs on Mexico paused for a month after border deal

Teachers Fiona Elias (L) and Liz Hopkin (R) were stabbed at the school in Wales.

Girl, 14, found guilty of attempted murder after stabbing two teachers and pupil at school

The school was put on lockdown and a teenages has been arrested after the stabbing.

Boy, 15, dies after stabbing at school in Sheffield - as teenager, 15, arrested

He was travelling back from Tavistock alongside club physio Reighan Taylor when the car sustained a flat tyre.

Former Bournemouth ace fighting for life in coma after horror car crash

Thames Water will seek High Court approval for an emergency £3bn rescue plan

Thames Water seeks High Court approval for emergency cash amid £17bn of debt

By Tuesday a band of rain moves east across England and Wales.

Britain to be battered with heavy downpours and strong winds as band of rain set to sweep through UK

Donald Trump Watches SpaceX Launch Its Sixth Test Flight Of Starship Spacecraft

Donald Trump axes $40billion US foreign aid agency after taking advice from Elon Musk

Idrees Jaff, of Norwich, reportedly attacked the victim at 11pm on June 10 in Chapelfield Gardens

Man, 39, faces jail after raping male victim in late-night attack in city centre park

The school was put on lockdown and a teenages has been arrested after the stabbing.

Stabbing at school gate: 14-year-old teenager arrested as boy, 15, rushed to hospital and classrooms 'locked down’

Gregor Poynton, chair of the APPG and MP for Livingston, has attacked Elon musk after his social media platform X refused to remove the video.

‘Grotesque glorification of violence’ - MP slams Musk for not removing extreme video seen by Southport killer

Daniel Khalife's escape led to a nationwide manhunt.

'More Scooby Doo than 007': Daniel Khalife sentenced to 14 years in jail after prison escape and spying for Iran