Here are the key issues Jeremy Hunt explained to MPs as part of what is said to be the final budget ahead of the election.
TAXES
Workers’ National Insurance premiums will be cut from 10% to 8% from April, affecting 27 million workers, saving up to £450 a year.
NI rates for the self-employed will be reduced by 2% as follows : Points will be reduced. Well.
The top rate of capital gains tax will be reduced from 28% to 24%.
The non-domestic taxing authority will be abolished. This means that foreigners who live in the UK but are legally resident abroad can no longer avoid paying UK tax on their overseas income or capital gains. A “simpler” housing system will be introduced in 2025.
Stamp duty will be removed for people buying more than one home in a single sale (multiple housing allowances). It will be canceled.
Attached Housing The rental housing program has been canceled due to a “lack of available properties for long-term homeowners.”
Airfare will increase for non-economy passengers.• The Energy Profit Tax, a tax on oil and gas produced in the UK, will be extended until 2029.
Benefits and income support
Full child benefits to be paid to households where highest-earning parent earns up to £60,000 – the current limit is £50,000
Partial child benefit to be paid where highest earner earns up to £80,000
Longer repayment period for people on benefits taking out emergency budgeting loans from the government
Government fund for people struggling with cost of living pressures to continue for another six months
£90 admin fee to obtain a debt relief order scrapped
Child benefit to be paid to more families
Cigarettes,alcohol and vapes
The alcohol tax, which ends in August, will continue until February 2025.
The new tax on vaping products from October 2026, depending on the level of nicotine.
The time for the price of tobacco will rise to 2, 00 pounds for every 100 cigarettes, to ensure that the price will remain the same.
Transportation and energy
Fuel duty has been frozen again and a 5p tax cut on petrol and diesel, which expires later this month, will remain in place for another year.
The windfall tax on energy company profits, due to expire in March 2028, has been extended until 2029.
Air passenger tax, flight tax, flying business class flags£160m deal for UK government to buy planned Wylfa nuclear power station in North Wales.
Another £120m government fund to invest in green energy projects.
Business support
Leased assets will be subject to business cost payments going forward “where applicable”. The bill will be issued shortly.
The VAT registration threshold for businesses will be raised from £85,000 to £90,000.
Film studios in England will receive a 40% discount on their operating costs until 2034. The tax break has become constant at 45% for touring and orchestral productions and 40% for non-touring productions.
Housing
Higher rate of tax paid on profits from selling property cut from 28% to 24%
Tax breaks for owners of holiday let properties scrapped
Stamp duty tax break when purchasing multiple properties in England or Northern Ireland to end in June
Public debt, inflation and the economy
The Office for Budget Responsibility forecasts UK growth of 0.8 per cent this year and 1.9 per cent next year2 per cent in 2026, 1.8 per cent in 2027 and 1.7 per cent in 2028.
UK inflation- target will decrease before the end. from June below 2 percent, will fall to 1.5 percent next year.
Public debt, excluding Bank of England debt, is forecast to be 91.7 percent of GDP this year and rise to 92.8 percent next year.
Public Finance Daily spending increases 1% in real terms over the next five years.
NHS budget to increase by £2.5bn next year; the service will also receive £3.4 billion in productivity improvements by 2030.
