Budget 2024: The key announcements in Chancellor Rachel Reeves’s speech
Chancellor Rachel Reeves has finally unveiled the budget for 2024. Here are the key points:
This page is being updated, refresh to see more as it’s announced.
• The budget raises taxes by £40bn.
• National Insurance contributions for employers (not employees) will increase by 1.2 percentage points to 15% from April 2025.
The point at which employers start paying NI will fall from £9,100 a year to £5,000 a year. This will raise £25bn per year.
• The lower rate of capital gains tax (CGT) on the sale of assets will increase from 10% to 18%. The higher rate will go from 18% to 24%. CGT on the sale of residential property will also increase from 18% to 24%.
• Tax thresholds will rise, meaning the point at which people pay higher taxes will be increased. These tax bands had been frozen. But this freeze will end in 2028 and the bands will increase at the rate of inflation.
• The freeze on inheritance tax will continue for a further two years until 2030. This means the first £325,000 can be inherited tax-free, rising to £500,000 if the estate is passed to direct descendants, and £1m if it’s passed to a surviving spouse or civil partner.
• From tomorrow the stamp duty surcharge for second homes, or ‘higher rate for additional dwellings’, will increase by two percentage points to 5%.
• Health and employment services for people who are disabled and long-term sick will get £240m in funding.
• The minimum wage for people 21 and over will rise by 6.7% to £12.21 an hour. This is the equivalent of £1,400 a year for a full-time worker. Workers aged 18 to 20 will see their minimum wage increase by 16.3% to £10 an hour.
• People will now be able to earn £10,000 or more while claiming Carers Allowance. This will mean an extra £81.90 for those newly eligible.
• The household support fund will receive £1bn to help those in financial hardship with the cost of essentials.
• A new fair repayment rate will mean Universal Credit claimants who have been accidentally overpaid will only have to pay back 15% of their allowance each month, falling from 25%. This means a gain of around £420 a year for roughly 1.2 million of the poorest households.
• Businesses will get an increase in employment allowance, which will mean 65,000 employers won’t pay any National Insurance at all next year with the allowance growing from £5,000 to £10,500. This will mean more than a million businesses will pay the same or less than they did previously.
• Business rates relief will fall from the current 75% down to 45% for retail, leisure and hospitality businesses.
• The day-to-day NHS budget will increase by £22.6bn. There will also be a further £3.1bn investment in its capital budget.
• This will facilitate 40,000 extra hospital appointments and procedures every week and will include £1.5bn for new hospital beds.
• Local government will receive funding worth “at least” £600m for social care.
• An investment of £5bn in housing, which will increase the affordable homes programme to a budget of £3.1bn.
• In addition, £1bn will be spent on the removal of dangerous cladding, implementing the findings of the Grenfell inquiry.
• Fuel duty will be frozen this year and next, with the existing 5p cut maintained.
• A cut to draft alcohol duty of 1.7%, which could make drinks cheaper by 1p.
• The tax on tobacco will rise at the rate of inflation plus an additional 2%. There will also be an extra 10% on rolling tobacco.
• There will be a new flat rate duty on all vaping liquid from next October.
• VAT will be introduced on private school fees from January 2025 and business rates relief for private schools will be removed from April 2025.
• Some 500 state schools that are old and not fit for purpose will be rebuilt at a total cost of £1.4bn. There will be an extra £300m for school maintenance each year, which will cover dealing with RAC concerns.
• The budget for free school breakfast clubs will be tripled to £30m, in 2025 and 2026. The core budget for schools will also rise by £2.3bn next year.
• An investment of £300m for further education and £1bn for children with special educational needs (SEN).
• The HS2 rail link between Old Oak Common in west London and Birmingham has been confirmed. Tunnelling work will also begin on extending the line to London Euston.
• Air passenger duty on private jets will rise by 50%, which is the equivalent of £450 per passenger.
• The energy profits levy on oil and gas companies will increase to 38% until March 2030.
• The annual defence budget will fall below 2.5% of GDP next year – with an increase of £2.9bn for the Ministry of Defence.
• A commitment of £3bn a year for Ukraine for “as long as it takes”.
• Public finances will be in surplus, rather than in deficit, by the 2027-2028 financial year. The government claims this means reaching stability two years earlier than planned.
• The Office for Budget Responsibility (OBR) predicts UK GDP growth to be 1.1% in 2024, 2.0% in 2025, 1.85% in 2026, 1.5% in 2027, 1.5% in 2028, 1.6% in 2029.
• The OBR expects public sector net borrowing to be £105.6bn in 2025-26, £88.5bn in 2026-27, £72.2bn in 2027-28, £71.9bn in 2028-29 and £70.6bn in 2029-30.
• Consumer price index (CPI) inflation will hit 2.5% this year, according to OBR forecasts. Next year it will rise to 2.6% before falling to 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2% in 2029. It’s the goal of the Treasury to bring inflation down to 2%. The Bank of England has raised interest rates to bring the rate of price rises to 2%.
• The price of soft drinks will rise, with an increase to the drinks levy in line with inflation every year. Nearly £1bn a year will be raised thanks to the measure.
• All government departments will have their budgets reduced by 2% next year. This will be achieved by “using technology more effectively and joining up services across government”.
Andrew Tate and his brother Tristan Tate have been charged with rape and other offences in the UK.
Andrew Tate, 38, faces 10 charges, including rape, actual bodily harm, human trafficking and controlling prostitution for gain, relating to three women.
His brother Tristan Tate, 36, faces 11 charges relating to one woman – including rape, actual bodily harm and human trafficking.
The charges were authorised in January 2024, but full details have only been released now.
Bedfordshire Police issued an international arrest warrant for the brothers over allegations, which they “unequivocally deny”, said to have occurred between 2012 and 2015.
The Tate brothers are facing separate allegations of trafficking minors, sexual intercourse with a minor and money laundering in Romania.
They are also accused of human trafficking and forming a criminal gang to sexually exploit women in a different case, which has been sent back to prosecutors.
They are due to be extradited to the UK following the conclusion of proceedings in Romania.
Andrew Tate and his brother Tristan outside a Bucharest court in January. File pic: Inquam Photos/Octav Ganea via Reuters
A Crown Prosecution Service (CPS) spokesperson said: “We can confirm that we have authorised charges against Andrew and Tristan Tate for offences including rape, human trafficking, controlling prostitution and actual bodily harm against three women.
“These charging decisions followed receipt of a file of evidence from Bedfordshire Police.
“A European Arrest Warrant was issued in England in 2024, and as a result the Romanian courts ordered the extradition to the UK of Andrew and Tristan Tate.”
The spokesperson added: “However, the domestic criminal matters in Romania must be settled first.
“The Crown Prosecution Service reminds everyone that criminal proceedings are active, and the defendants have the right to a fair trial.
“It is extremely important that there be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”
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Representatives for Andrew Tate have been contacted by Sky News for comment.
Lawyer Matt Jury, of McCue Jury & Partners, representing several alleged British victims of Andrew Tate, said: “We welcome the clarity from the Crown Prosecution Service that our authorities are working to ensure the Tates face justice here in the UK – they cannot be allowed to escape extradition.
“At the same time, we ask once more that CPS admit its mistake in failing to prosecute Tate when he lived in the UK and finally charge him for the rape and assault of the other three women, our clients, who originally filed criminal complaints against him as long ago as 2014 but were failed by the system.
“They deserve justice, too.”
The allegations were subject to a police investigation, which was closed in 2019.
Merseyside Police has been given more time to question a 53-year-old man arrested over the Liverpool parade collision.
The suspect is being held on suspicion of attempted murder, dangerous driving and drug driving after a car was driven into a crowd at Liverpool FC’s victory parade on Monday.
Police have said the extra time they have been given to question the suspect runs into Thursday.
The force believes the vehicle which struck pedestrians on Water Street had followed an ambulance crew that was attending to someone suffering a heart attack, after a road block was temporarily lifted.
Earlier, new footage emerged showing a car being driven into the crowd as panicked fans watched in horror and tried to avoid being hit.
The CCTV footage showed supporters attempting to move out of the way as the vehicle ploughed into supporters.
Cries could be heard from the crowd – before police and members of the public chased after the car.
In an update on Wednesday, Merseyside Police said it was in contact with 79 people who were injured in the crash – an increase on the 65 people who were confirmed injured in the force’s previous update.
Seven people remain in hospital in a stable condition following the collision, the force added.
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Moment car drives into crowds in Liverpool
Detective Superintendent Rachel Wilson said: “I’m pleased to say that the number of people in hospital is reducing as they continue to recover from the awful incident.
“We continue to support those still receiving treatment and as part of our ongoing enquiries we are identifying more people who were injured.
“I want to reassure the public of Merseyside that detectives are making significant progress as we seek to establish the full circumstances that led to what happened.”
Water Street where the collision happened has reopened. Pic: Reuters
Pic: Reuters
DS Wilson said that “extensive CCTV enquiries” were being carried out across Liverpool to “establish the movements of the car, a Ford Galaxy, before the incident took place”.
She added: “We have already had an incredible response from many of those who were there on the day, and I thank them for their co-operation with our investigation.
“I would encourage anyone who has not yet contacted police who may have information on this incident to do so.
“An extensive investigation into the precise circumstances of the incident is ongoing, and we continue to ask people not to speculate on the circumstances surrounding the incident and refrain from sharing distressing content online.”
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Emergency service on Water Street after the collision. Pic: Reuters
It comes after Water Street was reopened to vehicles and pedestrians on Wednesday after the police cordon was lifted.
Street cleaning teams worked overnight to clear the road, which had been littered with bottles, cans and football scarves and flags.
One remaining Liverpool flag was removed from the top of a set of traffic lights by a worker wearing hi-vis.
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On Tuesday night, Liverpool manager Arne Slot decided not to attend the League Managers Association’s annual awards ceremony “in solidarity with those affected by the incident on Monday”.
Meanwhile, speaking at an awards ceremony on Tuesday, former Liverpool boss Jurgen Klopp said the collision on Water Street “showed the two faces of life”.
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Klopp sends ‘thoughts and prayers’ to victims
He said: “The most beautiful face for a long, long time: the parade was incredible, the mood was incredible and from one second to another everything changed and we learned again there are more serious things in the world than football.
“Thoughts and prayers go to the injured people and their families as well.
“It should have been one of the greatest days in the history of the city, after a long, long time, because we didn’t have the opportunity to do it last time. I don’t know how and why it happened but we know what happened and that’s very bad.”
The heartbroken mother of a Scottish teenager who vanished three weeks ago has told Sky News she fears he could have been “picked up in a car”.
Cole Cooper, 19, was last seen by an old school friend on Wednesday 7 May in the village of Longcroft near Falkirk.
Prior to that, he was captured on CCTV a few days earlier after leaving a house party in the area.
His mum, Wendy Stewart, 42, allowed Sky News into her home as she revealed the pain her family is enduring.
Cole’s mother Wendy Stewart (L) and his aunt Aimee Tennie
Wiping away tears, Ms Stewart said: “I don’t know what’s happened. He has not been seen. Is it a possibility he has been picked up by a car?
“I don’t want to start speculating but I just want answers. Somebody please come and tell us.”
She added: “It’s total heartache. It’s just so surreal. Is this actually happening? I have been wanting to wake up and it’s just been a big nightmare.”
Pic: Police Scotland
Cole’s family say the joinery apprentice recently started up his own fencing and decking business, which was thriving.
His aunt Aimee Tennie who has arranged community searches and erected missing posters, has said he is a popular young man who enjoys karaoke.
The 32-year-old told Sky News: “He is well liked. He is well respected. He is a lovely boy. If he is out there, we want you to come home.
“We want answers. We miss you. We love you.”
Pic: Police Scotland
Pic: Family handout
Police Scotland said more than 220 properties have been visited and more than 1,000 hours of CCTV footage collected as part of the force’s efforts to find the teenager.
Specialist resources from across the country have been mobilised to help, including the police helicopter and drones from the air support unit, as well as officers from the dive and marine unit.
Ms Stewart said she would not lose hope of finding her son.
She said: “I am still praying that we get the outcome that we want which is Cole to come back home with us and to make more happy memories.”
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Cole was reported missing on Friday 9 May.
Police said he was earlier captured on CCTV in the Longcroft area at about 6am on Sunday 4 May.
The last confirmed sighting was at 8.45pm on the A803 at its intersection with Cumbernauld Road, Longcroft, on Wednesday 7 May.
Police Scotland said an incident and welfare support unit will remain in the area while extensive searches and door-to-door enquiries continue.
An online portal has also been set up to allow members of the public to submit information directly to the investigating officers.
Cole – who has links to the Denny, Cumbernauld and Paisley areas – has been described as around 5ft 10in, of medium build, with short brown hair.
He was last seen wearing a black puffer-style jacket with black jogging bottoms.
Chief Inspector Alex Hatrick said there was “a lot of work going on behind the scenes” to find the teenager.
He added: “While this may not be as visible, please be assured we are working tirelessly to find Cole.”
Speaking to Sky News, the police chief said there had been no evidence of criminality.
“This is very much a missing person enquiry,” he added.
“There’s no information to suggest that Cole’s come to any harm at this time. Our focus is very much on tracing Cole safe and well.”
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