Autumn Budget 2024 Summary: What Does It Mean For You?

The UK’s latest Autumn Budget rolled out with substantial changes across taxes, public spending, and infrastructure investment. From shifts in employer contributions to boosts in the NHS budget, there have been some significant changes. If you’re wondering ‘what does the new budget mean for me?”, explore this blog to find out more. 

Changes in the New Budget 2024

Tax Increases

This year’s budget brings a rise in taxes, expected to raise £40 billion overall. Here’s how these changes may impact your finances:

Employers' National Insurance Contributions: In April 2025, employers' national insurance contributions will increase by 1.2 percentage points to a total of 15%. This increase may affect job creation and wage growth, though it’s a measure aimed at bolstering government funds for other public services.

Capital Gains Tax: For those who generate income from selling assets, capital gains tax rates will see a notable rise. The lower rate will increase from 10% to 18%, while the higher rate will go from 20% to 24%. 

Stamp Duty Land Tax Surcharge on Second Homes: The surcharge on buying second homes will go up by two percentage points, now at 5%. If you're looking to purchase a second property, this increased cost is an important consideration, especially for those investing in rental properties or holiday homes.

Personal Taxes

On the personal tax front, the budget provides a bit of a breather for most working people:

No Increase in National Insurance, VAT, or Income Tax: The government has opted not to increase national insurance, VAT, or income tax for working individuals.

Minimum Wage Increase: The national minimum wage will rise by 6.7%, bringing the hourly wage up to £12.21. This increase will be welcome news for lower-income workers, potentially providing more spending power to offset the cost of living increases.

Public Services and Spending

Public spending is also seeing some significant increases, especially in health, education, and defence.

NHS Budget: The NHS will receive a significant uplift, with £22.6 billion added to the day-to-day health budget and an additional £3.1 billion towards capital spending. This increased funding aims to improve healthcare services, reduce waiting times, and provide essential infrastructure updates.

Defence Spending: Defence budgets are also set to grow, with an increase of £2.9 billion for next year, reinforcing the country’s security measures amid global uncertainties.

Education Funding: More than 500 schools will benefit from a £1.4 billion fund for rebuilding projects, alongside a core schools budget increase of £2.3 billion next year. These changes aim to improve school infrastructure and overall educational resources, directly impacting the learning environment for students across the country.

Housing and Infrastructure

Investment in housing and infrastructure has been emphasised, addressing concerns over affordable housing and regional connectivity.

Housebuilding Investment: Over £5 billion will go towards building more homes, a play that could help address the ongoing housing shortage and potentially ease property prices in the long term.

Cladding Removals: An additional £1 billion has been allocated to remove dangerous cladding, improving safety standards and easing worries for residents in affected buildings.

HS2 and Northern Rail Links: The HS2 rail project will extend to Euston Station, enhancing connectivity in the capital, while rail upgrades between York, Leeds, Huddersfield, and Manchester aim to boost northern England's infrastructure. 

Other Changes in the Autumn 2024 Budget 

The budget also introduced smaller, targeted measures to address specific areas:

• Flat Rate Duty on Vaping: Starting October 2026, vaping liquid will have a flat-rate duty applied, as part of efforts to regulate this market.
• Tobacco Taxes: Taxes on tobacco are set to rise, likely impacting prices for consumers in an attempt to encourage healthier lifestyles.
• Fuel Duty Cut: The 5p cut on fuel duty will be maintained into next year, providing relief to drivers amid fluctuating fuel prices.
• Pension Triple Lock: The government’s commitment to the pension triple lock remains in place, with state pensions set to rise by 4.1% in 2025-26. This will support pensioners by preserving their income’s real value against inflation.

Contact our UK Finance Company 

If you would like to find out more about the UK Autumn Budget 2024 and what it means for individuals or businesses, please get in touch with Blue Sky Finance today.