Posted by jonathanfullarton - October 31, 2024 7:17 am Autumn Budget 2024

Yesterday, the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, delivered her Autumn Budget to the House of Commons.

Given what was reported in the weeks leading up to the budget, it’s fair to say that the majority of our clients expected bad news. And, in the words of the Rt Hon Rachel Reeves herself ,”we [Labour] have delivered”.

The significant rise in Employers’ National Insurance contributions will hurt businesses. Only time will tell if these costs will be passed on to individuals – the same individuals that Labour was looking to protect in saying they wouldn’t increase income tax, National Insurance or VAT for “working people”.

It came as no surprise that Labour followed through on their plans to charge VAT of 20% on independent school fees, having announced it in the King’s Speech back in July, proposed it in their general election manifesto, and having been in their sights for many years. Again, will this have the desired effect of raising much needed funds for state education, or will it put more pressure on state education with children leaving private education?

The increase in capital gains taxes was of little surprise either. There will be some that think these increases should have gone further, aligning capital gains tax rates with that of income tax rates. However, others would argue that would discourage investment and risk-taking.

The various tax increases will raise significant amounts for the government’s plans, but only time will tell whether it will have the desired effect and improve people’s lives in the long term.

For a detailed summary of the Budget, please read our Budget report below.

You can view the report online or download a pdf.

Should you require any further advice on any matters announced within the Budget then please contact your local MFW office where our teams will be pleased to help.

Please note: Our Budget update has been prepared ahead of the release of all the technical information relating to these changes and is therefore, designed to provide an overview of the Autumn Budget and should not be solely relied upon in making any personal or business decisions. Many of the details contained herein should therefore only be used for guidance purposes and the help of a professional should be sought who will consider your own unique circumstances and the best approach for you.