Jeremy Hunt’s Spring Budget At a Glance

Chancellor Jeremy Hunt has presented the details of this year’s Budget in the House of Commons, marking the final scheduled Budget before the upcoming general election, expected later this year. Here’s an overview of the key announcements:

Tax & Income Support:

• National Insurance reduced by 2 percentage points for both employees and the self-employed.
• Non-Dom tax regulations, applicable to UK residents with a primary residence overseas, to be replaced by new rules starting April 2025.
• Introduction of a £5,000 “British ISA” tax allowance, enabling individual savers to invest in UK-listed companies.
• Extension of repayment periods for emergency budgeting loans for benefit recipients.
• Elimination of the £90 fee for obtaining a debt relief order.
• Continuation of the government fund aiding individuals coping with cost of living pressures for an additional six months.

Smoking & Alcohol:

• Freeze on alcohol duty extended until February 2025.
• Implementation of a new tax on vaping products beginning October 2026, following consultation.
• Increment in existing tobacco tax to maintain the financial incentive for choosing vaping over smoking.

Transport & Fuel:

• Freeze on fuel duty maintained, along with the extension of the 5p fuel duty cut on petrol and diesel for another year.
• £160 million agreement for the UK government’s acquisition of the Wylfa nuclear site in north Wales.
• Extension of the “windfall” tax on energy firms’ profits until 2029.
• Increase in air passenger duty for business class tickets.

Housing:

• Reduction of the higher rate of tax on profits from property sales from 28% to 24%.
• Discontinuation of tax breaks for owners of holiday let properties.

Inflation & the Economy:

• Office for Budget Responsibility projects a 0.8% growth for the UK economy this year and 1.9% next year.
• Forecasted growth rates of 2% for 2026, 1.8% for 2027, and 1.7% for 2028.
• Anticipated fall of the UK’s inflation rate below the 2% target in the coming months.
• Estimated underlying debt, excluding Bank of England debt, to reach 91.7% of GDP this year, rising to 92.8% next year.
• Expected real-term growth of 1% in overall day-to-day government spending over the next five years.
• Business:
• Increase in the threshold for small businesses required to register for VAT, raised from £85,000 to £90,000 starting April.
• Permanent extension of tax reliefs for touring and orchestral productions, previously scheduled to conclude in March 2025.
• Other:
• Allocation of £1 million for the establishment of a memorial commemorating Muslims who served in Britain’s armed forces during World War One and Two.
• Introduction of a new tax credit benefiting independent UK films with budgets under £15 million.

The Implications of Jeremy Hunt’s latest Budget

For information on how Jeremy Hunt’s latest budget will affect you and your business, contact us directly.