Budget 2024: The key announcements in Chancellor Rachel Reeves’s speech

Published

8 months ago

October 30, 2024

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Chancellor Rachel Reeves has finally unveiled the budget for 2024. Here are the key points:

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• 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”.

UK

GPs can prescribe weight loss jabs on the NHS from today – but strict eligibility criteria in place

Published

32 mins ago

June 23, 2025

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GPs can prescribe weight loss jabs on the NHS from today - but strict eligibility criteria in place

GPs will be able to prescribe weight loss jabs on the NHS from today.

About 220,000 people with the “greatest need” are set to receive Mounjaro – with strict criteria for the first year of the rollout.

Initially, only those with a body mass index of over 40 who have at least four other health problems linked to obesity will be eligible.

Some doctors have raised concerns about the additional workload this new programme will bring, while pharmacists fear it could lead to supply shortages.

While an estimated 1.5 million people are now taking weight loss drugs across the UK, they could previously only be accessed through specialist services or private prescriptions.

Dr Claire Fuller from NHS England said: “We urgently need to address rising levels of obesity and prioritise support for those who are experiencing severe ill health – and greater access to weight loss drugs will make a significant difference to the lives of those people.”

She added: “While not everyone will be eligible for weight loss drugs, it’s important that anyone who is worried about the impact of their weight on their health discusses the range of NHS support available with their healthcare professional.”

The chairwoman of the Royal College of GPs welcomed NHS England’s decision to pursue a phased rollout, and said current workloads must be factored in to ensure the jabs can be prescribed safely.

Professor Kamila Hawthorne went on to say: “While weight loss medications have a lot of potential benefits for patients who are struggling to lose weight and who meet all the clinical criteria for a prescription, they mustn’t be seen as a ‘silver bullet’ to aid weight loss.

“We also need to see a focus on prevention, stopping people becoming overweight in the first place so they don’t require a medical intervention later.”

Her remarks were echoed by the National Pharmacy Association’s chairman Olivier Picard, who says “prescribing these medications alone misses the point”.

He argued that they need to be part of a comprehensive strategy that includes lifestyle coaching, exercise and nutritional guidance – but many GPs currently “lack the bandwidth” to provide this support.

“As a result, we could end up in a situation where patients are prescribed the medication, lose weight, and then experience rebound weight gain once the course ends – simply because the foundational lifestyle changes weren’t addressed,” Mr Picard added.

Estimates suggest about 29% of the adult population is obese.

Health Secretary Wes Streeting says the government “is determined to bring revolutionary modern treatments to everyone who needs them, not just those who can afford to pay”.

UK

Met Police chief ‘frustrated’ at planned protest to support Palestine Action – as government moves to ban the group

Published

3 hours ago

June 23, 2025

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Met Police chief 'frustrated' at planned protest to support Palestine Action - as government moves to ban the group

Metropolitan Police Commissioner Sir Mark Rowley says he is “shocked and frustrated” at a planned protest in support of Palestine Action.

The demonstration, due to take place in Westminster later, comes as the government moves to ban the group under anti-terror laws.

Activists from Palestine Action hit the headlines last week after targeting RAF Brize Norton and damaging two military aircraft in a significant security breach.

Home Secretary Yvette Cooper will update MPs on the move to proscribe the organisation, which would make it a criminal offence to belong to or support it.

Sir Mark said that – until this happens – the force has “no power in law” to prevent the protest from taking place, but lawbreakers will be “dealt with robustly”.

He added: “This is an organised extremist criminal group, whose proscription as terrorists is being actively considered.

“Members are alleged to have caused millions of pounds of criminal damage, assaulted a police officer with a sledgehammer and last week claimed responsibility for breaking into an airbase and damaging aircraft.

“Multiple members of the group are awaiting trial accused of serious offences.”

He added that – while the right to protest is essential – “actions in support of such a group go beyond what most would see as a legitimate protest”.

Over the weekend, Business Secretary Jonathan Reynolds said he could not rule out the possibility of a foreign power being behind Palestine Action.

Any move to proscribe the group must be debated and approved by MPs and peers.

Speaking to Sunday Morning With Trevor Phillips on Sky News, former justice secretary Lord Charlie Falconer suggested that vandalising aircraft would not solely provide legal justification for such a move.

Lord Falconer said: “I am not aware of what Palestine Action has done beyond the painting of things on the planes in Brize Norton, they may have done other things I didn’t know.

“But generally, that sort of demonstration wouldn’t justify proscription so there must be something else that I don’t know about.”

Palestine Action has staged a series of protests in recent months – spraying the offices of Allianz Insurance in London, and vandalising Donald Trump’s golf course in Ayrshire.

UK

‘Stability in Middle East is priority,’ says Starmer – as world reacts to strikes

Published

1 day ago

June 22, 2025

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'Stability in Middle East is priority,' says Starmer - as world reacts to strikes

Sir Keir Starmer has said stability in the Middle East is “a priority” following US strikes on Iran’s nuclear facilities, as the world has reacted to the attack.

The prime minister also called on Iran to “return to the negotiating table” to “reach a diplomatic solution to end this crisis”.

Follow latest: Iran considering ‘all options’ after US strikes

In a statement, Sir Keir said: “Iran’s nuclear programme is a grave threat to international security.

“Iran can never be allowed to develop a nuclear weapon, and the US has taken action to alleviate that threat.

“The situation in the Middle East remains volatile and stability in the region is a priority.

“We call on Iran to return to the negotiating table and reach a diplomatic solution to end this crisis.”

The UK was not involved in the strikes but was informed about them in advance by the US, Business Minister Jonathan Reynolds told Sky News’ Sunday Morning with Trevor Phillips.

Sir Keir and Foreign Secretary David Lammy had been pushing for a diplomatic solution. On Thursday, the prime minister warned of a “real risk of escalation” in the conflict.

The US struck three sites in Iran early on Sunday morning, with Donald Trump boasting the country’s key nuclear sites were “completely and fully obliterated” in an address to the nation from the White House and warned there could be further strikes if Iran retaliates.

Netanyahu praises Trump

Israel‘s Prime Minister Benjamin Netanyahu praised Mr Trump for the strikes, saying: “Your bold decision to target Iran’s nuclear facilities with the awesome and righteous might of the United States will change history…

“History will record that President Trump acted to deny the world’s most dangerous regime the world’s most dangerous weapons.”

UN secretary-general ‘gravely alarmed’ by US attack

But UN secretary general Antonio Guterres said he was “gravely alarmed by the use of force” by the US against Iran.

“This is a dangerous escalation in a region already on the edge – and a direct threat to international peace and security. There is a growing risk that this conflict could rapidly get out of control – with catastrophic consequences for civilians, the region, and the world.”

European Union foreign policy chief Kaja Kallas urged all sides to step back and return to the negotiating table. “Iran must not be allowed to develop a nuclear weapon,” she said in a post on X.

“I urge all sides to step back, return to the negotiating table and prevent further escalation,” she said, adding that EU foreign ministers will discuss the situation tomorrow.

How the world reacted to the strikes

Cuba’s President Miguel Diaz-Canel said on X: “We strongly condemn the US bombing of Iran’s nuclear facilities, which constitutes a dangerous escalation of the conflict in the Middle East.

“The aggression seriously violates the UN Charter and international law and plunges humanity into a crisis with irreversible consequences.”

Venezuela’s foreign minister Yvan Gil said his country’s government “condemns US military aggression” and “demands an immediate cessation of hostilities”.

In a statement, an Australian government spokesperson said Iran’s nuclear and ballistic missile programme “has been a threat to international peace and security”.

Japan’s Prime Minister Shigeru Ishiba said it is “crucial that there be a quick de-escalation of the conflict”.

Italy’s foreign minister Antonio Tajani said after the attack that his country’s government hopes “a de-escalation can begin and Iran can sit down at the negotiating table”.

The US attack came after more than a week of strikes by Israel, which have significantly degraded Iran’s air defences and offensive missile capabilities, and damaged its nuclear enrichment facilities.

Israel’s strikes on Iran have killed at least 865 people and wounded 3,396 others, according to the Washington-based group Human Rights Activists. The group said of those killed, 365 were civilians and 215 were security force personnel.