Budget 2024: The key announcements of Chancellor Jeremy Hunt’s speech

Published

2 months ago

March 6, 2024

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The chancellor has unveiled the budget for 2024. Here are the key points:

• National insurance contributions for employees are being cut from 10% to 8% from April – impacting about 27 million workers – with savings of up to £450 a year.

• Self-employed NI rates will drop by two percentage points as well.

• Higher rate of property capital gains tax will be reduced from 28% to 24%.

• The non-dom tax status has been abolished. It means foreign nationals who live in the UK, but are officially domiciled overseas, will no longer be able to avoid paying UK tax on their overseas income or capital gains. A “simpler” residency-based system will arrive in 2025.

What’s a non-dom and why does it matter?

Removing the non-dom tax regime is a move straight from Labour’s playbook.

Potentially designed to take the wind out of Labour’s sails, it takes away a clear dividing line between the parties’ policies.

A non-dom is someone who lives in the UK but whose permanent home is abroad.

The term is short for non-domiciled individual.

Under the UK’s current regime they only pay tax on money earned in the UK, their income and wealth from outside of the UK is isn’t taxed.

As a result, rich people make considerable savings if they choose to be tax domiciled abroad.

Non-doms can benefit from the tax arrangement for up to 15 years.

But that’s to change.

Labour wanted this to be cut just to four years. And that’s just what Chancellor Jeremy Hunt has done.

For those currently using the non-dom tax system “transitional arrangements” will be made, Mr Hunt said, including a two-year period in which individuals will be encouraged to bring wealth earned overseas to the UK.

This measure will attract an additional £15bn of foreign income and gains and generate more than £1bn of extra tax, he said.

• Stamp duty relief for people who purchase more than one dwelling in a single transaction, known as Multiple Dwellings Relief, is scrapped.

• The furnished holiday lettings regime has been abolished because it created “a distortion meaning that there are not enough properties available for long term rental by local people”.

• Air passenger duty will be raised for non-economy class plane passengers.

• The energy profits levy – the windfall tax on UK-produced oil and gas – is extended to 2029.

Budget 2024: Live updates

• The High Income Child Benefit Charge, which hits payments if one parent earns above £50,000 a year, is to move to a household-based system. The threshold will rise to £60,000 from April in the meantime. The top of the taper where it is withdrawn is raised to £80,000.

• The household support fund is extended for further six months.

• The £90 charge to get a debt relief order is abolished.

• Repayment periods for people on low incomes who take out new budgeting advance loans will increase from 12 to 24 months.

• A new British ISA will allow a £5,000 annual investment into in UK businesses. It includes all the tax advantages of other ISAs and will be on top of the existing allowances.

• To help people save, a new British Savings Bond, delivered through NSNI, will offer a guaranteed rate – fixed for three years.

Money blog: What budget means for you

• Duty will be introduced on vaping liquids for the first time in October 2026. A one-off increase in tobacco duty will be made at the same time.

• Alcohol duty freeze has been extended until February 2025. Mr Hunt said the government wants to back British pubs.

• No change to fuel duty, with 5p cut announced in March 2022 still in place.

• Full expensing for businesses will apply to leased assets in future “when affordable”. Draft bill to be published shortly.

• VAT registration threshold for businesses upped from £85,000 to £90,000

• Eligible film studios in England will secure 40% relief on their gross business rates until 2034. Tax reliefs made permanent at 45% for touring and orchestral productions and 40% for non-touring productions.

• Office for Budget Responsibility predicts UK GDP growth of 0.8% (0.7%) in 2024 and 1.9% (1.4%) in 2025. Figures in brackets are OBR’s predictions last November.

• Office for Budget Responsibility expects Treasury borrowing of 91.7% of GDP (91.6%) in 2024-25, 92.8% (92.7%) in 2025-26. Figures in brackets are OBR’s predictions last November.

• Office for Budget Responsibility sees inflation coming in below target within “months”.

• NHS to get additional £2.5bn this year to tackle issues including waiting lists.

• Planned growth in day-to-day public sector spending to be maintained at 1% in real terms, but Mr Hunt says “we are going to spend it better”. Includes funding NHS productivity plan “in full” to boost digital transformation.

UK

Five-month-old baby dies after ‘neglect incident’ at Legoland Windsor

Published

2 hours ago

May 7, 2024

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Five-month-old baby dies after 'neglect incident' at Legoland Windsor

A five-month-old baby who went into cardiac arrest at Legoland Windsor last week has died in hospital.

The child was in a critical condition following the incident at around 1pm on Thursday 2 May.

A 27-year-old woman from Witham, Essex, was arrested on suspicion of neglecting a child to cause unnecessary injury on Friday.

The woman is on police bail until 26 July.

Police have said they are not looking for any other suspects and have asked the public to “avoid speculation about the incident and to respect the boy’s family at this deeply upsetting time”.

The baby boy died in hospital on Sunday, police said today.

Investigating officer Detective Constable Zoe Eele, of the Child Abuse Investigation Unit, said: “We are investigating a distressing incident involving a very young child at Legoland Windsor earlier this week.

“Firstly, our thoughts are with the family of the boy who sadly died in hospital after suffering a cardiac arrest. We are supporting them as best we can at this extremely difficult time.

“We are working closely with the team at Legoland Windsor Resort but would like to speak to anyone who may have information about this incident, specifically anyone who was queueing for the Coastguard HQ boat ride between around 11.30am and 12:45pm.”

UK

King too busy to see Prince Harry during his UK visit, duke’s spokesperson says

Published

2 hours ago

May 7, 2024

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King too busy to see Prince Harry during his UK visit, duke's spokesperson says

The King is too busy to see Prince Harry during his visit to the UK, the duke’s spokesperson has said.

Harry is in London for an event celebrating 10 years of the Invictus Games.

It marks the first time the royal has been in the country since his rushed visit to see the King in February after the monarch’s cancer diagnosis.

There had been press speculation that the pair would meet up again on his latest trip, but a spokesperson for the Duke of Sussex has said the King is too busy to see his son.

“In response to the many inquiries and continued speculation on whether or not the duke will meet with his father while in
the UK this week, it unfortunately will not be possible due to His Majesty’s full programme,” the spokesperson said.

“The duke of course is understanding of his father’s diary of commitments and various other priorities and hopes to see him soon.”

The King returned to public duties last week for the first time since his diagnosis for an unspecified form of cancer.

Buckingham Palace has said his diary will be carefully managed to minimise any risks to his health.

The palace has also said it would not comment on matters relating to Harry.

The monarch held an audience with the prime minister of Fiji, Sitiveni Rabuka, at Buckingham Palace today as Harry was seen in the UK.

Earlier, a Sky News camera captured Prince Harry arriving at the Honourable Artillery Company’s headquarters on the edge of the City of London for a one-day summit, called the Invictus Games Foundation Conversation.

The event is looking back over the decade-long history of the games which Harry founded in 2014 as a Paralympics-style sporting event for injured and sick military personnel and veterans.

It is taking place ahead of a ceremony at St Paul’s Cathedral on Wednesday to mark the 10th anniversary of the games.

The ceremony will be the first major event Harry has attended in Britain for some time.

Harry hails legacy that ‘transcends sports’

Speaking in a foreword at the summit taking place today ahead of the St Paul’s service, Harry said: “It has been an honour to watch the Invictus Games Foundation grow over the years; what began as a vision to pay tribute to the courage and resilience of wounded, injured, and sick service personnel and veterans, has flourished into an international organisation built on hope, strength, and unity.”

The duke also wrote: “We are eager to celebrate the Invictus Spirit once again – exemplified in every single competitor, staff, friend and family member – your commitment, enthusiasm and belief, have been the driving force behind our continued success.”

He added: “Together, we have created a legacy that transcends sports; a community that embraces compassion, respect, and the unyielding belief in the power of the human spirit. As we celebrate this milestone, let us recommit to the Invictus mission.”

Hollywood star to feature at St Paul’s service

It is not known if any other members of the Royal Family will be in attendance at the ceremony at St Paul’s Cathedral on Wednesday.

British actor Damian Lewis is set to recite the Invictus poem during the service.

Representatives from across the Invictus Games participating nations, including members of the wounded, injured and sick service personnel and veteran community, will also be in attendance.

Following his visit to Britain, Harry will be joined by his wife Meghan for a trip to Nigeria.

The Duke of Sussex served in the UK military himself for 10 years from 2005 and was deployed to Afghanistan on two occasions.

Harry was inspired to found the Invictus Games after attending the Warrior Games in Colorado in 2013 and seeing how injured American military personnel thrived on the challenge of taking part in competitive sports that aided their recovery.

He went on to stage the inaugural games in London’s Olympic Park in 2014, followed by Orlando in 2016, Toronto in 2017 and Sydney 2018.

Harry has been living with Meghan in California since they quit their roles as senior working royals in March 2020.

The couple have two children together – Archie and Lilibet.

Harry has only visited the UK a few times since his decision to move to the US.

His latest trip comes after reports of a rift between himself and his brother William, the heir to the throne.

In a tell-all book published in January last year, Harry made several explosive claims about the royals – detailing fallouts with his family, including William.

UK

UK weather: Saturday could be hottest day of the year so far as temperatures set to hit 26C

Published

5 hours ago

May 7, 2024

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UK weather: Saturday could be hottest day of the year so far as temperatures set to hit 26C

Temperatures could hit highs of 26C this weekend, with Saturday in with a chance to be the hottest day of the year so far.

Forecasters say temperatures will build over the coming days before coming to a head over the weekend, with mostly clear conditions expected across England and Wales.

By Saturday, the Met Office indicates the south of England could see highs of up to 26C. So far, the hottest temperature recorded this year was in Santon Downham in Suffolk, which saw 23.4C last Thursday.

The forecaster said high pressure will push north throughout the week and bring more warmer and drier conditions after the bank holiday weekend washout.

Met Office meteorologist Amy Bokota said: “High pressure is forecast to dominate the UK for the rest of the week and into the weekend.

“High pressure brings dry and settled weather and with warm air sat over the UK this will give some pleasant warm temperatures. There is good confidence that high pressure will last until the weekend.

“Temperatures are expecting to build over the next few days, with a likely peak of Saturday.”

See the latest weather forecast where you are

Scotland and Northern Ireland are also set to enjoy warmer springtime weather, with 22C also forecast on Saturday in Glasgow.

Northern parts of the UK will still see cloudy skies, and patches of moving high pressure are “likely to cause periods of prolonged rainfall” in parts of Northern Ireland and the north of Scotland, Met Office spokesperson Grahame Madge said.

The sunnier skies aren’t set to last long, however. In their long range outlook to 21 May, the Met Office said that Sunday will “likely be the last widely dry and fine day for a while, with warm sunshine for most”.

It added: “After Sunday, the weather is expected to switch back to become changeable across the country, with further spells of rain and showers expected.

“Rainfall amounts could be above average in most areas. It is also possible that rain will be heavy at times, and any showers could turn thundery. Temperatures are also expected to fall closer to average for May.”