On Wednesday, 30th November 2024, Chancellor Rachel Reeves delivered the much anticipated (and feared) Autumn Budget 2024 in parliament. In this article, we’ve summarised the key announcements, focusing on personal taxes, welfare, energy and the environment, public services and infrastructure, corporate and business taxes, and regional investments. 

Here are the key announcements from the UK’s Budget 2024:

Personal Taxes and Welfare:

  • Inheritance tax thresholds are frozen until 2030, with inherited pensions now subject to this tax from 2027, projected to raise £2 billion annually.
  • Capital gains tax on carried interest will increase, and VAT will be applied to private school fees from January 2025.
  • The national minimum wage is set to rise by 6.7% to £12.21 an hour, creating a unified minimum wage for those aged 18 and above.
  • The government will continue supporting the pension triple lock, raising the state pension by 4.1% in 2025–26.

Energy and Environment

  • A £3.4 billion investment in household energy efficiency is planned, along with funding to reduce fuel poverty and increase heat decarbonisation.
  • A new Energy Profits Levy at 38% for oil and gas companies will extend until 2030, while the Boiler Upgrade Scheme receives additional funding to meet demand.
  • Over £200 million is allocated for electric vehicle charging points across England, and EV tax rates will remain low until 2029.

Public Services and Infrastructure

  • A £2.3 billion increase in the core schools budget and £1 billion boost for special educational needs.
  • An additional £3 billion is earmarked for NHS spending, marking the largest real-term growth since 2010.
  • Defence spending will rise by £2.9 billion in the next year, with ongoing support for Ukraine.
  • The HS2 project will continue with funding to complete the London Euston connection.

Corporate and Business Taxes

  • Businesses with second homes face an increased stamp duty surcharge, up to 5%.
  • A crackdown on tax evasion and avoidance aims to save £6.5 billion, with additional measures to combat welfare fraud, targeting a £4.3 billion reduction by 2029.

Regional Investments

  • Significant funding boosts are planned for devolved governments, with Scotland receiving £3.4 billion, Wales £1.7 billion, and Northern Ireland £1.5 billion for regional development and essential services