Budget 2024

Wednesday 30 October

£40bn in tax increases

Today, Chancellor Rachel Reeves has delivered Labour’s first budget in almost 15 years. As Sir Kier Starmer said early this morning – It’s a big day for Britain.

The headline is that taxes are due to go up by £40bn – with businesses being asked to pay more than half.

The government claim that promises of their pre-election manifesto have not been broken. They are not increasing NI contributions, income tax or VAT for the working person.

But there’s a word missing here: Directly.

Some businesses say the chances of you getting a job or a pay rise may be hit as a result of the extra financial burden that employers will face.

Some could raise prices to cover the cost.

Make no mistake, the changes announced today will have a far reaching impact on all of us now – and for years to come.

Earlier today we chatted with Stephen Fitzsimons, Chief Executive of Warrington Chamber of Commerce about his hopes for the upcoming statement – and about what his members are saying.

It seems that Warrington businesses are optimistic about the future but are looking for rates reform.

Listen Again: Stephen Fitzsimons

Budget 2024 ian

Terry Hayward, Chief Executive of North Cheshire Chamber of Commerce is also optimistic but does have concerns as to how much businesses will be asked to contribute.

Listen Again: Terry Hayward

Budget 2024 ian

The Autumn Statement

Though the finer details of the statement are still being scrutinised, the main take-aways are:

Companies will be asked to pay Employee National Insurance at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100.
The minimum wage for over-21s will rise from £11.44 to £12.21 per hour from April.
The 5p cut in fuel duty on petrol and diesel brought in by the Conservatives, due to end in April 2025 will be extended for a further year.
The £2 cap on single bus fares in England will rise to £3 from January (though not in Greater Manchester).
The point at which house buyers start paying stamp duty on a main home will drop from £250,000 to £125,000 in April.
Tax on tobacco will increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco.

Following the budget announcement and reply from Rishi Sunak, leader of the opposition, we were joined by financial expert Alun Cooper of PFP Wealth Group in Stockport. You can listen again right here.

Listen Again: Alun Cooper with Ian

Budget 2024 ian

Alun highlighted that Capital Gains Tax will increase to 18% at the lower rate and 24% at the higher.

Perhaps more importantly, the inheritance tax threshold has been extended – and will now include pension pots. This could have a considerable effect on inheritance tax in the future.

Also, stamp duty on second homes is set to increase to 5%.

Response from Warrington Borough Council

Thursday 31st: Professor Steven Broomhead, Chief Executive of Warrington Borough Council joined us on the breakfast show.

Largely, he feels the budget was positive – though acknowledges that there will be challenges for businesses.

Though there are no decisions as yet, the Council will be looking at ways of keeping the bus fare levy at £2 per journey.

Professor Steven Broomhead

Steven Broomhead Budget Review ian

All bad news?

The next few days will see much commentary – and we will see how the markets react. But there was one small grain of good news: Draft beer duty is to be cut to 1.7%. That means a penny off a pint!

Let’s hope the pubs pass it on…

Our thanks to Professor Steven Broomhead, Stephen Fitzsimons, Terry Hayward and Alun Cooper for assisting with our special budget broadcast.

Written by: ian