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Will the Spring Budget Help Your Wallet Bloom?

Chancellor Hunt's Spring Budget, delivered in March 2024, aimed to stimulate economic growth and ease the burden on households. Let's dissect the key announcements and explore what hasn't been addressed.


Tax Cuts for Workers and Businesses:

  • National Insurance (NI) Reduction: A significant change is the 2% cut in the main rate of employee NI, putting an average of £330 back in workers' pockets annually. This builds on the 1% reduction announced previously. The main rate of Class 4 NI for the self-employed also falls, going from 8% to 6%.

  • VAT Relief: Small businesses will welcome the increased VAT registration threshold to £90,000. Additionally, the creative industries received a boost through over £1 billion in new tax reliefs.

Cost-of-Living Measures:

  • Fuel Duty Freeze Extended: The positive news for drivers is the continuation of the fuel duty freeze, providing some relief at the petrol pumps. This is estimated to save drivers around £100 per year.

Investment and Public Services:

  • Public Service Investment: The budget outlines plans for increased investment in public services, a move welcomed by many. However, details on specific areas and funding allocations remain to be seen.

What Wasn't Addressed:

While the budget offers some relief, some key areas haven't been addressed:

  • Income Tax: No changes were announced regarding income tax rates, which could have provided a more direct benefit to taxpayers.

  • Universal Benefits: No increases were announced for Universal Credit or other core benefits, which may leave low-income households struggling with inflation.

The Bottom Line:

The Spring Budget offers some positive steps for workers, businesses, and public services. However, the lack of measures for income tax and core benefits leaves some feeling the pinch will continue. The success of the budget hinges on the effectiveness of the announced measures in stimulating growth and easing cost-of-living pressures.


Full details of the budget can be found on the government website here - https://www.gov.uk/government/publications/spring-budget-2023

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