A rundown of the Labour Autumn Budget 2024
30 October 2024
The Autumn Budget 2024 marks the UK’s first Labour budget since 2010, presented by Chancellor Rachel Reeves with a focus on fostering economic stability and setting a foundation for sustainable growth. Here’s a breakdown of the key areas that could impact your business and personal finances.
Business tax adjustments
The budget introduces several changes in business taxation. Employers’ National Insurance contributions will increase to 15% from April, with the earnings threshold lowered to £5,000. To offset this, smaller businesses will benefit from an increased Employment Allowance, now set at £10,500.
Relief for retail and hospitality sectors
Retail and hospitality businesses will see a 40% relief on business rates, capped at £25,000, with a permanent lower business rates multiplier for these sectors starting from 2026-27. These measures aim to reduce operational costs in these heavily impacted industries.
Personal tax updates: Capital Gains Tax and Inheritance Tax
Income tax and National Insurance thresholds remain frozen until 2028, countering inflation’s impact on bracket creep. Changes in Capital Gains Tax (CGT) mean a rise to 18% for the lower rate and 24% for the higher, directly affecting those selling shares and assets. Additionally, the inheritance tax (IHT) threshold remains fixed until 2030, while specific assets exceeding £1 million will incur a 20% tax on the excess.
Wages and employment: boost for low-income earners
The National Living Wage for those over 21 will rise by 6.7% to £12.21 from April 2025, with younger workers’ rates gradually aligning with the adult rate. Carers’ Allowance eligibility will also improve, with weekly earnings limits now based on 16 hours at the National Living Wage.
Strategic investments and business support
To strengthen key industries, the National Wealth Fund will invest across aerospace, automotive, and life sciences. Employment Allowance increases and adjusted business rates will support smaller employers by reducing tax burdens and operational costs.
How Simon & Co can help
With these updates, businesses and individuals may have new questions on financial planning. If you’d like guidance on how these changes could affect you, Simon & Co is here to help. Contact us for expert advice on securing the best outcomes for your financial future.
