In the 2024 Autumn Budget, Chancellor Rachel Reeves outlined measures to address economic challenges and support growth. Key highlights include:
- Economic Growth and Fiscal Responsibility: The government set a target for GDP growth, aiming for 2% by 2025. Borrowing as a percentage of GDP is projected to decrease, aligning with fiscal rules to balance the budget by 2029?
- Support for Workers and Businesses: The National Minimum Wage will rise by 16% for young adults, though this faced criticism over potential job losses. Carer’s Allowance was significantly increased, marking its largest rise since inception. Reeves also reaffirmed a freeze on income tax, National Insurance, and VAT for workers?
- Social and Environmental Investment: The state pension will increase by 4.1% under the triple lock. £1.8 billion has been allocated to compensate victims of the Post Office scandal. Investments were announced for clean energy projects like Carbon Capture and Storage to stimulate industrial jobs?
- Tax Changes: Stamp duty thresholds will decrease in 2025, potentially impacting homebuyers. Inherited pensions will be subject to inheritance tax starting in 2027?
- Public Services and Infrastructure: Funds were allocated for health, education, and housebuilding. Savings and anti-fraud measures were introduced to enhance public service efficiency?
Business reactions were mixed. While some welcomed measures to support workers and reduce inflation, concerns were raised about higher employer taxes and potential economic strains from wage increases