Posted 1 day ago
UK Spring Budget 2024 - 6th March
Update 1
Key announcements are now added
On the 6th March Chancellor Jeremy Hunt will deliver the 2024 Spring budget. Usually it's around 12:30pm
Below you'll find some of the predictions for this years budget. Of course these are all educated guesses, which is the best we can expect at this point. Once we have more information and we know what's happening, I'll update the thread with the new announcements.
Key announcements from the Spring budget 2024: Will be updated throughout the day
Further on the above can be found at the bottom of this description with sources.
Child Benefit
"There had been speculation that the Chancellor might extend child benefit to thousands of middle-income families by raising the threshold at which the benefit is gradually withdrawn. Since 2013 it has been frozen at £50,000 while those earning over £60,000 lose the benefit altogether.
But there have been warnings it unfairly penalises single parent families. This is because a couple can have a combined income of up to £100,000 and not be affected - so long as neither of their salaries are above £50,000. Money Saving Expert Martin Lewis has said it would be a "very popular measure if it were addressed in the Budget"."
First-Time buyers 99% mortgage scheme
It's been so difficult for people to get on the property ladder, that something needs to change. "The Chancellor is reportedly considering a plan to allow first-time buyers to take out mortgages with just a 1% deposit"
Right now, first time buyers would need at least a 5% deposit. If you use the average UK house price of £288,000, this would require a £14,400 deposit. Under a 99% mortgage scheme, this number takes a huge drop down to £2,800.
This sounds great in the short term, although there are concerns drive house prices up, partially due to it not solving existing housing shortage. Think supply and demand, I suppose? - "Tories had failed to meet their manifesto pledge to build 300,000 new homes a year."
Stamp duty reduction
"5% in stamp duty is paid on the part of the property costing between £250,0001 and £925,000, 10% on the part between £925,001 and £1,500,000, and 12% on any value above £1,500,000."
First time buyers currently don't need to even think about stamp duty, unless the property being purchased costs more than £425,000.
For anyone else, the rates look like this:
"Last month, Robert Jenrick, who used to be the Tory housing minister, was chatting to the Treasury. He has some ideas for how they could make buying a home a bit cheaper.
He asked them to think about reducing the amount of stamp duty people have to pay. He suggested they could increase the thresholds (which would mean fewer properties would be affected), reduce the rates, or even scrap the whole thing.
The Institute for Fiscal Studies seems to agree. They've said that stamp duties "are particularly damaging taxes and should be at the front of the queue for growth-friendly tax cuts"."
Fuel duty freeze
"Fuel for cars, like petrol and diesel, has had the same level of extra tax - called fuel duty - of 52. 95p-a-litre since way back in 2011." At this stage it's uncertain if this will stay the same, as Mr Hunt didn't have much to say about it last year "you'll have to wait until the spring Budget".
Also the 5p per litre cut may be sticking around.
Inheritance tax
"Changes to inheritance tax have been considered by the Treasury for some time. This is a tax paid on the value of things (like houses and money) that people inherit when someone dies.
There's been talk about reducing this tax for the wealthiest families in the country. But, it now seems more likely that we'll hear about this in the Tories' general election manifesto rather than in next week's Budget.!
Income Tax or National Insurance cut
"In his pre-election Budget Jeremy Hunt is said to be mulling a cut to either National Insurance or Income Tax.
Under intense pressure from Tory MPs to slash taxes before the country heads to the ballot box, the Chancellor has been weighing up his options. According to The Times a further 1% - or 2% - cut in employees National Insurance could be unveiled with a £4.5billion a year price tag. It follows a 2% cut at the Autumn Statement last year.
But even if the Chancellor goes ahead with this change, taxes are on course to reach record levels due to Tory stealth taxes. Income tax thresholds, which usually rise in line with inflation, were frozen by Mr Sunak as Chancellor in 2022 until 2028"
Household Support Fund
This was initially launched in 2021, to allow councils to receive extra money, so that they can assist low-income households with things like energy bills and food. It was extended last year although right now, we're not sure it the scheme will continue after the end of March this year.
"Mayors from across the country have urged the Chancellor to extend the "vital lifeline" for the most vulnerable families, saying it has been used to boost food bank supplies, support victims of domestic violence, and provide food vouchers for at-risk young people. Ending the scheme could spark a major row."
Vape Tax - It's expected that we'll see rises in the cost of vape liquids. They're already subject to VAT, but there could be a separate levy coming up.
Tobacco duty -"In the Autumn Statement in November, the Chancellor announced that all tobacco products would increase by 2% above inflation" There also could be a one of rise in tobacco duty, which may put a pack of 20 cigarettes in the region of £16 (Averagely)
Sources
Predictions
Announcement Sources
Below you'll find some of the predictions for this years budget. Of course these are all educated guesses, which is the best we can expect at this point. Once we have more information and we know what's happening, I'll update the thread with the new announcements.
Key announcements from the Spring budget 2024: Will be updated throughout the day
- Inflation is expected to fall below the government’s 2% target
- Rates guarantee for childcare providers
- Measures announced to help those struggling with debt
- Fuel duty freeze extended for another year / 5p cut to remain in place
- Household Support has been extended at the current level for the next 6 months
- Alcohol duty freeze until 2025
- VAT threshold lift for Small Businesses
- New pensions measures and ‘British ISA'
- "OBR forecast shows "good progress" on Rishi Sunak's pledges"
- New tax reliefs for the British film industry
- Abolish furnished holiday lettings relief
- New tax on vapes
- Reduction in higher rate of property capital gains tax from 28% to 24%
- Extension on windfall tax on oil and gas profits
- Reform of the child benefits system - Child benefit charge threshold rising to £60,000
- National insurance cuts by 2p (more info)
- Cut higher rate of property capital gains tax
- NHS "landmark public sector productivity plan"
- Growth - "the economy is expected to grow 0.8% this year and 1.9% next year, 0.5% higher than the OBR’s autumn forecast"
Further on the above can be found at the bottom of this description with sources.
Child Benefit
"There had been speculation that the Chancellor might extend child benefit to thousands of middle-income families by raising the threshold at which the benefit is gradually withdrawn. Since 2013 it has been frozen at £50,000 while those earning over £60,000 lose the benefit altogether.
But there have been warnings it unfairly penalises single parent families. This is because a couple can have a combined income of up to £100,000 and not be affected - so long as neither of their salaries are above £50,000. Money Saving Expert Martin Lewis has said it would be a "very popular measure if it were addressed in the Budget"."
First-Time buyers 99% mortgage scheme
It's been so difficult for people to get on the property ladder, that something needs to change. "The Chancellor is reportedly considering a plan to allow first-time buyers to take out mortgages with just a 1% deposit"
Right now, first time buyers would need at least a 5% deposit. If you use the average UK house price of £288,000, this would require a £14,400 deposit. Under a 99% mortgage scheme, this number takes a huge drop down to £2,800.
This sounds great in the short term, although there are concerns drive house prices up, partially due to it not solving existing housing shortage. Think supply and demand, I suppose? - "Tories had failed to meet their manifesto pledge to build 300,000 new homes a year."
Stamp duty reduction
"5% in stamp duty is paid on the part of the property costing between £250,0001 and £925,000, 10% on the part between £925,001 and £1,500,000, and 12% on any value above £1,500,000."
First time buyers currently don't need to even think about stamp duty, unless the property being purchased costs more than £425,000.
For anyone else, the rates look like this:
- 5% Stamp duty between- £250,0001 and £925,000
- 10% Stamp duty between - £925,001 and £1,500,000
"Last month, Robert Jenrick, who used to be the Tory housing minister, was chatting to the Treasury. He has some ideas for how they could make buying a home a bit cheaper.
He asked them to think about reducing the amount of stamp duty people have to pay. He suggested they could increase the thresholds (which would mean fewer properties would be affected), reduce the rates, or even scrap the whole thing.
The Institute for Fiscal Studies seems to agree. They've said that stamp duties "are particularly damaging taxes and should be at the front of the queue for growth-friendly tax cuts"."
Fuel duty freeze
"Fuel for cars, like petrol and diesel, has had the same level of extra tax - called fuel duty - of 52. 95p-a-litre since way back in 2011." At this stage it's uncertain if this will stay the same, as Mr Hunt didn't have much to say about it last year "you'll have to wait until the spring Budget".
Also the 5p per litre cut may be sticking around.
Inheritance tax
"Changes to inheritance tax have been considered by the Treasury for some time. This is a tax paid on the value of things (like houses and money) that people inherit when someone dies.
There's been talk about reducing this tax for the wealthiest families in the country. But, it now seems more likely that we'll hear about this in the Tories' general election manifesto rather than in next week's Budget.!
Income Tax or National Insurance cut
"In his pre-election Budget Jeremy Hunt is said to be mulling a cut to either National Insurance or Income Tax.
Under intense pressure from Tory MPs to slash taxes before the country heads to the ballot box, the Chancellor has been weighing up his options. According to The Times a further 1% - or 2% - cut in employees National Insurance could be unveiled with a £4.5billion a year price tag. It follows a 2% cut at the Autumn Statement last year.
But even if the Chancellor goes ahead with this change, taxes are on course to reach record levels due to Tory stealth taxes. Income tax thresholds, which usually rise in line with inflation, were frozen by Mr Sunak as Chancellor in 2022 until 2028"
Household Support Fund
This was initially launched in 2021, to allow councils to receive extra money, so that they can assist low-income households with things like energy bills and food. It was extended last year although right now, we're not sure it the scheme will continue after the end of March this year.
"Mayors from across the country have urged the Chancellor to extend the "vital lifeline" for the most vulnerable families, saying it has been used to boost food bank supplies, support victims of domestic violence, and provide food vouchers for at-risk young people. Ending the scheme could spark a major row."
Vape Tax - It's expected that we'll see rises in the cost of vape liquids. They're already subject to VAT, but there could be a separate levy coming up.
Tobacco duty -"In the Autumn Statement in November, the Chancellor announced that all tobacco products would increase by 2% above inflation" There also could be a one of rise in tobacco duty, which may put a pack of 20 cigarettes in the region of £16 (Averagely)
Sources
Predictions
Announcement Sources
Community Updates
42 Comments
sorted byToday that Bitcoin would have surged in value by ~140% in just under a year, now worth about ~£600.
So much for Sunak who championed himself to be pro-crypto. Politicians know nothing about boosting the wealth of ordinary Brits – they all need to be unelected, for they all are the cause of the UK's miserable economic woes.
We need some radical thinking, bold policy choices and significant tax cutting to kick-start things.
Unfortunately Starmer and his rabble are likely to be even worse than the current clowns.
I suspect the budget is going to be more about laying traps for Labour, putting in things they know will have to be scrapped is Labour want to increase spending.
That drop will not last past the next election - I do not like paying taxes, but for the sake of forfeiting such a tiny increase in my pay, the Govt could have used that money to try and sort out some issues that need desperate attention asap... first things to mind are the NHS, National Defence, and helping broke councils to restructure their constituencies and their budgets.
Non of these vanity projects which cost more on the consultation side of things rather than the delivery itself, which in turn end up heavily over budget, the likes of which most individuals will see no benefit at all.
Raise the income allowance properly and you get my vote. I cannot see a lot of people disagreeing with my statement. (edited)
Also means a relatively few at the very top pay a large %age of income tax, a few dozen Sugars, Ratcliffes, Dysons and Ashleys move overseas and the treasury takes a huge hit.
It should be around £2,500 to exclude taxing teenagers doing weekend jobs and students working in hols and nothing else. (edited)
except for one shop locally that didn't get the memo and kept it at £18.70
As it's due to go up again today i just went round there and stocked up as they'll likely get the memo this time and could potentially realise their past mistake and put the price up by a good few quid (edited)