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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.

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Taxes

• 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%.

Benefits

• 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.

NHS / Health

• 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.

Social care

• Local government will receive funding worth “at least” £600m for social care.

Housing

• 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

Fuel duty will be frozen this year and next, with the existing 5p cut maintained.

Alcohol duty

• 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.

Schools / education

• 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).

Transport

• 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.

Windfall taxes

• The energy profits levy on oil and gas companies will increase to 38% until March 2030.

Defence

• 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”.

Economy

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 Budget

• 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”.

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British tourist who fell ill from methanol poisoning dies after ‘free shots’ giveaway in Laos resort

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British tourist who fell ill from methanol poisoning dies after 'free shots' giveaway in Laos resort

A British tourist being treated after a suspected mass methanol poisoning in Laos has died, according to UK officials.

Simone White, 28, from Orpington, Kent, fell ill after reportedly drinking “free shots” from a local bar in Vang Vieng – a resort popular with backpackers.

Four people had already died following the suspected poisonings – an Australian named Bianca Jones, 19, from Melbourne, as well as two Danish women in their 20s and a 56-year-old US citizen.

They are believed to have consumed drinks tainted with methanol, which is sometimes added to mixed drinks as a cheaper alternative to alcohol, but can cause severe poisoning or death.

“We are supporting the family of a British woman who has died in Laos, and we are in contact with the local authorities,” the UK’s Foreign, Commonwealth and Development Office (FCDO) said in a statement.

The FCDO said it was also providing consular assistance to other British nationals hospitalised in the incident, as well as their families.

Bianca Jones
Image:
Bianca Jones, a 19-year-old from Australia, also died

Explained:
What is methanol, how does it end up in alcoholic drinks, and how can you avoid it?

Ms White was an associate lawyer specialising in intellectual property and technology and worked at the London office of the American law firm Squire Patton Boggs.

Her work involved general commercial matters, and contentious and non-contentious intellectual property law issues, according to the firm’s website.

Bethany Clarke, a friend of Ms White and a healthcare worker, also from Orpington, said a group of six people had been taken to hospital after drinking from the same bar.

She posted on a Laos Backpacking Facebook group to warn other travellers after the group fell ill.

“Urgent – please avoid all local spirits. Our group stayed in Vang Vieng and we drank free shots offered by one of the bars,” she wrote.

“Just avoid them as so not worth it. Six of us who drank from the same place are in hospital currently with methanol poisoning.”

‘Every parent’s very worst fear’

Australian Prime Minister Anthony Albanese confirmed to his country’s parliament that 19-year-old Bianca Jones had died after being evacuated to a Thai hospital from Vang Vieng.

Thai authorities confirmed that Jones had died of “brain swelling due to high levels of methanol found in her system”.

Her friend Holly Bowles, also 19, remains in hospital in neighbouring Thailand, Mr Albanese said.

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Laos methanol poisonings – what we know

Australian officials said “several foreign nationals” had also been victims of methanol poisoning

“This is every parent’s very worst fear and a nightmare that no one should have to endure,” Mr Albanese said.

“We also take this moment to say that we’re thinking of Bianca’s friend Holly Bowles who is fighting for her life.”

‘Her incredible spirit touched so many lives’

In a statement to the Melbourne Herald Sun newspaper, Ms Jones’ family paid tribute to her.

“She was surrounded by love, and we are comforted by the knowledge that her incredible spirit touched so many lives during her time with us,” the family wrote.

“We want to express our deepest gratitude for the overwhelming support, love, and prayers we’ve received from across Australia.”

The US State Department confirmed that an American had also died in Vang Vieng, and Denmark’s Foreign Ministry said two of its citizens had also died in “the incident in Laos”.

Neither would comment directly on a link to methanol poisoning.

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Storm Bert: Second named storm of season to bring snow, rain and 70mph winds to UK at weekend

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Storm Bert: Second named storm of season to bring snow, rain and 70mph winds to UK at weekend

The second named storm of the season will bring snow, rain and strong winds to parts of the UK this weekend, according to the Met Office.

Hundreds of schools are closed as the storm, named Bert, sweeps in, bringing freezing temperatures and snow over the weekend.

Wind gusts of up to 70mph are expected in some areas as well as the potential of flooding and travel disruption.

Heavy snowfall could bring further disruption to parts of the country while heavy rain is also likely over the weekend, the Met Office added.

Snowy conditions, in the village of Goathland, North York Moors National Park.
Pic: PA
Image:
Snowy conditions, in the village of Goathland, North York Moors National Park.
Pic: PA

Parts of southwest England including Plymouth and Exeter are under a yellow warning for snow until 3pm today, with 5-10cm predicted in higher parts of Dartmoor.

Wintry showers will continue in different parts of the UK throughout Thursday and Friday, amid warnings of snow and ice for much of Scotland, northern England and parts of western and eastern England and Wales between midday today and 10am tomorrow.

How Storm Bert is set to impact the UK this weekend. Pic: Met Office
Image:
How Storm Bert is set to impact the UK this weekend. Pic: Met Office

Met Office chief meteorologist Matthew Lehnert said: “A northerly airflow will continue to feed snow showers into Scotland over the next few days, with this reaching lower levels at times and bringing the potential for some travel disruption.

More on Uk Weather

“Overnight temperatures will drop below zero fairly widely over the next few days, which has resulted in some ice warnings, with further warnings likely through this week.”

More than 114 schools are shut in the Highland Council area today due to snow, including Inverness Royal Academy where pupils were told their prelim exams planned for the day would be rescheduled.

Almost 40 schools in Aberdeenshire are also shut while many others had delayed openings, and in Moray around 12 were closed and others opened late.

It comes after more than 100 schools or nurseries were closed in Scotland yesterday because of the weather.

Commuters dressed in warm clothes walk over Westminster Bridge.
Pic: Reuters
Image:
Commuters dressed in warm clothes walk over Westminster Bridge.
Pic: Reuters

South of the border, 89 schools were shut in Devon today, 18 in Dorset and 60 in Cornwall, while in Wales around 10 were closed in Conwy, 18 in Denbighshire and two in Wrexham.

As Storm Bert hits the UK, areas where warnings are in place in the south and west are likely to be impacted by heavy rain on Saturday and Sunday.

Between 50-75 mm of rainfall is expected there on the weekend, while Wales and southwest England could see more than 100mm.

There is already a yellow warning for heavy snow on Saturday followed by a “rapid thaw” and rain on Saturday night in northeast and northwest England, the West Midlands, Yorkshire, and much of Scotland.

Met Office Deputy Chief Meteorologist, Dan Holley, said: “Storm Bert marks a shift to much milder air and wintry hazards will gradually diminish through the weekend, but heavy snowfall is expected across parts of northern England and Scotland for a time on Saturday, especially over higher ground, and warnings are in place.”

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Dylan Thomas found guilty of murdering ‘best friend’ on Christmas Eve in Cardiff

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Dylan Thomas found guilty of murdering 'best friend' on Christmas Eve in Cardiff

A man has been found guilty of murdering his “best friend” on Christmas Eve.

A jury of 10 men and two women heard Dylan Thomas, 24, killed William Bush, 23, in a “frenzied attack” in the Llandaff area of Cardiff last year.

Thomas had previously pleaded guilty to manslaughter by diminished responsibility but denied Mr Bush’s murder.

A trial at Cardiff Crown Court heard Thomas attacked Mr Bush “from behind” in his bedroom after he entered through the kitchen at the property they shared, owned by the defendant’s grandparents.

During the “sustained attack” Mr Bush “fled for his life” down two flights of stairs and onto the patio, the trial heard.

William Bush
Pic:South Wales Police
Image:
William Bush. Pic: South Wales Police

Mr Bush sustained 37 stab wounds in total, including 21 to the neck.

His cause of death was given as “multiple stab wounds to the neck and trunk”.

The defendant, who was wearing a blue t-shirt, attended the hearing via video link from a secure hospital.

The jury returned a unanimous verdict on Thursday afternoon after just over three hours of deliberation.

Thomas, who was suffering from schizophrenia, had initially claimed he was acting in self-defence.

‘Clear thinking’

The court heard how Mr Bush was Thomas’s “only known real friend”.

During the trial, it was also heard how Thomas had been arrested “for trying to climb into Buckingham Palace” some weeks previously.

He also wrote to Elon Musk telling him he believed he had the ability to harness gravity.

The defendant was staying with his grandmother in Rhoose, the Vale of Glamorgan, on the night before the attack.

In the early hours of Christmas Eve, the jury heard Thomas had carried out an online search for the “anatomy of the neck”.

Thomas, who could not drive, enquired about getting an Uber to Tŷ Matthew in Llandaff at 3.31am.

Later that morning, his grandmother agreed to take him to the house after he told her he “wanted to walk the dog” and they left her home in Rhoose at 10.41am.

He had sent several messages to Mr Bush in the hours before the attack in which he said he needed to see him before Mr Bush went home to Brecon to spend Christmas with his family.

The prosecution argued there was “clear thinking on the part of Dylan Thomas”.

“This was a frenzied attack where Mr Thomas could only have had one intention and that was to kill Mr Bush,” said Gregory Bull KC, prosecuting.

Read more from Sky News:
Storm Bert to bring 70mph winds to UK
Banana duct-taped to a wall sells for $6.2m

But the defence argued Mr Bush’s schizophrenia lay “at the centre” of the case.

“He didn’t understand, because he was deluded. He believed, for whatever reason, that his best friend was threatening his life,” said defence barrister Orlando Pownall KC.

Thomas will be sentenced on Monday 16 December.

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