Chancellor ‘delivers lower taxes, more investment and better public services’ in ‘Budget for Long Term Growth’
‘Budget for Long Term Growth’ sticks to the plan by delivering lower taxes, better public services and more investment, while meeting fiscal rules – taking the long term decisions needed to build a brighter future.
- Economy turning a corner, with inflation expected to fall to target next quarter, wages consistently rising faster than prices and better growth than European neighbours.
- Chancellor capitalises on progress with ‘Budget for Long Term Growth’, sticking to the plan by putting over £900 a year back into the average worker’s pocket thanks to changes at Autumn Statement and a second Employee National Insurance tax cut from 10% to 8% in April for 27 million working people.
- 2 million self-employed also get a second tax cut through a further 2p reduction in the NICs main rate from 8% to 6% – saving the average self-employed worker £650 when combined with cuts at Autumn Statement.
- Personal tax cuts since Autumn are worth £20 billion, slashes the effective personal tax rate for an average earner to its lowest level since 1975, and will lead to equivalent of 200,000 more full-time workers joining the labour market.
- High Income Child Benefit Charge to be assessed on a household basis by April 2026, and immediate support for working families by increasing the threshold to £60,000 and halving the rate at which Child Benefit is repaid – representing a £1,260 boost on average for around half a million working families.
- The NHS in England will receive a £2.5 billion day-to-day funding boost for 2024/25 and £3.4 billion in capital investment over the forecast period to help unlock £35 billion in productivity savings over the next Parliament by harnessing new technology like AI and cutting admin workloads – part of landmark Public Sector Productivity Plan to deliver better public services.
- The average car driver will save £50 this year as the 5p cut and freeze to fuel duty is maintained until March 2025, while pubs, breweries and distilleries will benefit from a further freeze to alcohol duty until February 2025 – which will also save consumers money on their favourite tipple.
- New tax reliefs and investments will help establish the UK as a world leader in high-growth industries such as the creative sector, advanced manufacturing and life sciences, while 28,000 SMEs will be taken out of VAT registration altogether – encouraging them to invest and grow.
- ‘Budget for Long Term Growth’ sticks to the plan by delivering lower taxes, better public services and more investment, while increasing size of economy by 0.2% in 2028-29 and meeting fiscal rules – taking the long-term decisions needed to build a brighter future.
More tax cuts for working people, more investment and a plan for better public services headlined Chancellor Jeremy Hunt’s ‘Budget for Long Term Growth’ yesterday, Wednesday 6 March.
With the independent Office for Budget Responsibility (OBR) confirming inflation is set to fall to target a year earlier than previously expected, wages rising consistently and the economy outperforming European neighbours, the Chancellor said he would stick to the plan to improve living standards by rewarding work and growing the economy.
Building on the 2 percentage point cut to Employee National Insurance at Autumn Statement, Mr Hunt announced a second 2p cut from 10% to 8% from April. Taken together with the cut to Employee National Insurance at Autumn Statement, this slashes the main rate of Employee NICs by a third and means the average worker earning £35,400 a year will be over £900 better off this year.
The Chancellor also went further with tax cuts for the self-employed, having reduced Class 4 NICs from 9% to 8% and abolished the requirement to pay Class 2 NICs at Autumn Statement. Today he announced a further 2p cut to Class 4 NICs for the self-employed to 6%, meaning the average worker earning £28,000 will be £650 better off compared with last year.
Combined with changes at Autumn Statement, today’s announcements deliver personal tax cuts worth £20 billion and reduce the effective personal tax rate for a median earner to its lowest level since 1975. The OBR says these reductions will lead to the equivalent of around 200,000 extra full-time workers by 2028/29, as people increase their working hours and move into work. This boost is why the Chancellor has prioritised NICs cuts in his ‘Budget for Long Term Growth’ and why he will continue to do so when fiscally responsible. He set out that his long-term ambition is to end the unfairness of double taxation of work.
Mr Hunt also announced that the High Income Child Benefit Charge will be assessed on a household basis by April 2026, with a consultation to come on achieving this.
To ensure working families benefit from increasing their earnings before this change is made, the threshold to start paying back Child Benefit will increase in April from £50,000 to £60,000 – a 20% increase which will take 170,000 families out of paying the charge this year – while Child Benefit will no longer need to be repaid in full until earnings exceed £80,000. This represents a £1,260 boost on average for around half a million working families, rising to nearly £5,000 for some families when combined with tax cuts since Autumn Statement.
This will put an end to the current unfairness, where two parents earning £49,000 a year receive the full Child Benefit while a household with a single earner on over £50,000 does not. The OBR says the immediate changes to the HICBC will lead to an increase in hours worked equivalent to around 10,000 more people entering the workforce on a full-time basis.
The Chancellor also announced a landmark Public Sector Productivity Plan which marks the first step towards returning public sector productivity back to pre-pandemic levels and will ensure taxpayers’ money is spent as efficiently as possible. OBR analysis suggests that raising public sector productivity by just 5% would deliver up to £20 billion of benefits a year.
Backed by £4.2 billion in funding, the plan will allow public services to invest in new technologies like AI, replace outdated IT systems, free up frontline workers from time-consuming admin tasks and take action to reduce costs down the line.
The NHS will receive £3.4 billion as part of this over the forecast period – doubling investment in digital transformation, significantly reducing the 13 million hours lost by doctors every year because of old IT and delivering test results faster for 130,000 patients a year thanks to AI-fitted MRI scanners that help doctors read results more quickly and accurately.
This investment, which comes alongside an extra £2.5 billion cash injection for 2024/25 to support the NHS improve performance and reduce waiting times, means the NHS can commit to delivering £35 billion in productivity savings over the next Parliament, while the £800 million to boost productivity across other public services will deliver an extra £1.8 billion in productivity benefits by 2029.
New tax breaks and investments will help to establish the UK as a world-leader in high-growth industries.
The UK’s creative industries will be backed by over £1 billion, including higher tax reliefs to lower the cost of producing visual effects in high-end TV and film, a 40% relief on gross business rates until 2034 will be introduced for eligible film studios, and a new tax credit for independent British films with a budget of less than £15 million.
Orchestras, museums, galleries and theatres will also benefit from a permanent 45% tax relief for touring productions and 40% relief for non-touring productions, while £26 million will fund maintenance and repairs at the National Theatre.
A £360 million package will support innovative R&D and manufacturing projects across the life sciences, automotive and aerospace sectors – with a further £45 million funding to accelerate medical research into common diseases like cancer, dementia and epilepsy – while the Green Industries Growth Accelerator will be allocated an extra £120 million to build supply chains for offshore wind and carbon capture and storage.
Opportunity will be spread across the country with hundreds of millions in funding to extend the Long Term Plans for Towns to 20 new places and a swathe of cultural projects, while local leaders will also be empowered to improve their communities through more devolved powers and a new North-East trailblazer devolution deal which comes with a funding package potentially worth over £100 million to support the region’s growth ambitions.
The Chancellor also took steps to make the tax system simpler and fairer. The ‘non-dom’ tax regime will be abolished and replaced with a fairer system from April 2025 where new arrivals to the UK pay the same tax as everyone else after four years – raising £2.7 billion a year by 2028/29.
As the oil and gas sector’s windfall profits from higher prices are expected to last longer, the sunset clause on the Energy Profits Levy will be extended by a year to March 2029, raising £1.5 billion while encouraging investment in the UK’s energy security by promising to legislate for its abolition should market prices fall to their historic norm sooner than expected.
Accompanying forecasts by the OBR confirm that the combined impact of decisions taken at Spring Budget and the preceding two fiscal events will increase the size of the economy by 0.7% and increase total hours worked by the equivalent of 300,000 full-time workers by 2028-29 – with the combined impact of government policy since Autumn Statement 2022 reducing the tax burden in the final year of the forecast by 0.6%.
Today’s announcements will reduce inflation in 2024/25, bring the equivalent of over 100,000 people into the workforce by 2028-29 and permanently grow the economy by 0.2% – with borrowing falling in every year of the forecast.
Lower taxes
With the economy turning a corner and debt on track to fall as a share of GDP, the Chancellor delivered further tax cuts for working people – rewarding work, boosting growth and helping families with the cost of living.
- Following a 2 percentage point cut in the Autumn Statement, the main rate of Employee National Insurance will be cut again by a further 2 percentage points from 10% to 8% in April – a one third reduction in the main rate of National Insurance which means the average worker on £35,400 will receive a tax cut of over £900 compared to last year.
- Following a 1 percentage point cut in the Autumn Statement, the main rate of Class 4 NICs for the self-employed will be cut by a further 2 percentage points from 8% to 6% from April – saving the average self-employed person on £28,000 over £650 compared to last year when combined with scrapping the requirement to pay Class 2 NICs announced at Autumn Statement.
- Personal tax cuts worth £20 billion delivered since Autumn, which reduces the effective personal tax rate for a median earner to its lowest level since 1975.
High Income Child Benefit Charge (HICBC) will be administered on a household rather than an individual basis by April 2026, with a consultation in due course, while around half a million working families will benefit from an increase in the threshold from £50,000 to £60,000 and raising the level at which Child Benefit is fully repaid to £80,000 – worth £1260 per family on average. - OBR says combined changes to NICs will lead to the equivalent of around 200,000 new full-time workers joining the labour market by 2028-29 as people increase working hours and move into work, while confirmed changes to the HICBC will bring in the equivalent of an additional 10,000 full-time workers.
- The main rates of fuel duty will be frozen again until March 2025 with the temporary 5p cut also extended, saving car drivers around £50 this year and £250 since the 5p cut was introduced – a £5 billion tax cut.
- The six-month alcohol duty freeze announced at Autumn Statement will be extended until 1 February 2025, saving consumers 2p on a pint of beer, 1p on a pint of cider, 10p on a bottle of wine and 33p on a bottle of spirit compared to if the planned rise had gone ahead. This will benefit 38,000 pubs across the UK, while reducing inflation this year.
- The higher rate of Capital Gains Tax (CGT) on property will be cut from 28% to 24% from April 2024 – firing up the residential property market and supporting thousands of jobs that rely on it.
- Building on the single biggest investment in childcare in English history, nurseries and preschools will be protected from rising costs through a guarantee that future funding will rise with a combination of inflation, earnings and the National Living Wage – certainty the sector needs to expand and deliver the rollout, which will save some parents using the full 30 hours up to £6,500 a year.
- The most vulnerable families will receive targeted support through a £500 million extension to the Household Support Fund for an extra 6 months to September 2024, helping local authorities to support people with the cost of essentials, as well as abolishing the £90 fee for Debt Relief Orders so households struggling with problem debts can get the help they need, and extending the maximum period for Universal Credit budgeting advances from 12 to 24 months.
Better public services
While growth is key to delivering high-quality public services, the Chancellor backed the NHS with more funding and outlined the first steps towards getting public sector productivity back to pre-pandemic levels.
- Day-to-day public spending will increase by 1% higher than inflation on average over the next parliament, as Chancellor confirms spending levels will not be cut.
- The Public Sector Productivity Plan announced today with a £4.2 billion investment will improve public service delivery and get better value for taxpayers’ money through better tech, freeing frontline workers from time-consuming admin and making earlier interventions to reduce costs later down the line.
- The NHS will receive an additional £3.4 billion as part of this to invest in new tech and digital transformation, including making the NHS app a single front door for patients, piloting new AI to halve form-filling times for doctors, rolling out universal electronic patient records, and over one hundred upgraded AI-fitted scanners so doctors can read MRI scans more accurately and quickly. This improves patient care and helps unlock £35 billion in productivity savings by 2030.
- This means the NHS can commit to raising productivity in the NHS to 2% on average by 2028-29, at the upper end of the 1.5-2% ambition in the Long Term Workforce Plan – delivering a health service fit for the future. The NHS also gets a £2.5 billion funding boost for 2024/25.
- £800 million will be invested to boost productivity across other public services, including £230 million for drones and new technology like facial recognition which will free up police officers’ time for more frontline work and £75 million to roll out the highly successful Violence Reduction Unit model across England and Wales.
- This investment in non-NHS public services will help deliver up to £1.8 billion of benefits by 2029, with further measures including digitising jury bundles to free up 55,000 working hours spent on admin, creating 200 new children’s social care place to tackle overspends, and expanding the use of AI across government to make it easier to spot and catch those who try to defraud the public purse.
- Defence spending is expected to hit 2.3% of GDP next year after £11 billion investment announced at Spring Budget 2023.
More investment
Building on recent investments in the UK by Google, Nissan and Microsoft, Mr Hunt announced exciting new investments in key growth sectors and set out plans to support businesses of all sizes to grow.
- Significant package of support to establish the UK as a world leader in fast-growing industries over the next five years, including over £1 billion in new tax reliefs for creative industries, £270 million in automotive and aerospace R&D projects focusing, and a £120 million top up for the Green Industries Growth Accelerator to help build supply chains for offshore wind and carbon capture and storage.
- £45 million will fund medical research to develop new medicines for diseases like cancer, dementia and epilepsy, and the UK’s ability to manufacture them will be boosted by plans for a £650 million AstraZeneca investment to build a new vaccine manufacturing hub in Liverpool and expand their footprint in Cambridge – thanks to government support for the life sciences sector.
- Opportunity will be spread across the country with hundreds of millions in funding to extend the Long Term Plans for Towns to 20 new places, over £240 million to build nearly 8,000 homes in Barking Riverside and Canary Wharf alongside a new life sciences hub, and a new £160 million deal to acquire two site to develop nuclear for our energy security.
- Local leaders will be empowered, with a new North-East trailblazer devolution deal which comes with a funding package potentially worth over £100 million in support for the region, and powers devolved to Buckinghamshire, Warwickshire and Surrey.
Draft legislation will be published within weeks to extend full expensing – a £10 billion tax cut for business every year to help them invest for less – to leased assets when affordable to do so, strengthening one of the most attractive capital allowance regimes of any major country. - SMEs will be supported to invest and grow through a £200 million extension of the Growth Guarantee Fund, helping 11,000 small businesses to access the finance they need, and an increase in the VAT registration threshold from £85,000 to £90,000 which will take around 28,000 small businesses out of paying VAT altogether.
- Pensions and savings reforms, including the introduction of a new UK ISA allowing an additional £5,000 annual investment in UK equities tax-free and new British Savings Bonds offering savers a guaranteed rate for 3 years, will deliver better returns for savers.
Sustainable public finances
The ‘Budget for Long Term Growth’ delivers lower taxes, better public services and more investment in a responsible way, the OBR confirming the Chancellor’s fiscal rules are on track to be met.
- Underlying debt will fall as a share of the economy to 92.9% in 2028/29 – meeting the debt rule with £8.9 billion headroom. Headline debt will fall as a percentage of GDP every year from 2024/25.
- Public sector borrowing falls in every year of the forecast. The deficit will be 2.7% of GDP in 2025-26 – meeting the second fiscal rule to get borrowing below 3% of GDP three years early – and by 2028-29 it falls to 1.2% of GDP, which is the lowest level since 2001-02.
- Measures to tackle the tax gap will bring in an additional £4.5 billion a year by 2028/29, saving nearly £10 billion for the public purse when combined with policies announced at Autumn Statement.
- The ‘non-dom’ regime will be replaced by a simpler system where arrivals have access to a more generous scheme for their first four years of tax residency before paying tax in the same way as everyone else, raising £2.7 billion a year by 2028/29 without deterring investment.
- The Energy Profits Levy sunset clause will be extended from March 2028 to March 2029 to raise £1.5 billion a year, but legislation in the Finance Bill will abolish the Levy if market prices fall to their historic norm sooner than expected – maintaining investment in our energy security.
- A duty on vapes will be introduced from October 2026 to protect young people and children from the harm of vaping, alongside a one-off increase in tobacco duty to recognise the role vapes play in helping people to quit smoking. This will raise a combined £1.3 billion by 2028/29.
- Multiple Dwellings Relief will be abolished from June after showing no evidence of promoting investment in the private rented sector – raising £385 million a year – and the Furnished Holiday Lettings tax regime will be abolished from April 2025, raising £245 million a year while making it easier for local people to find a home in their community.
Chancellor delivers ‘Budget for Long-Term Growth in Scotland’
Secretary of State for Scotland Alister Jack said: “This Budget keeps Scotland and the whole of the UK on the right path for the future, with a clear focus on economic growth, jobs and prosperity.
“The UK Government’s direct investment in Levelling Up projects has now risen to over £3billion and that is fantastic news for communities right across Scotland.
“New measures announced today include £60million for Arbroath, Peterhead and Kirkwall and there is a further cash boost of £12.6million for cultural projects in Dundee, Dunfermline and Perth.
“Hardworking Scottish families will see more money in their pockets with a second National Insurance cut – guaranteeing lower taxes for Scottish workers – and a freeze to fuel duty is great news for motorists.
“The Budget freezes spirits duty for another year to boost our biggest export, whisky, and it also puts Scotland ahead in the new space race, with £10 million made available for Shetland’s SaxaVord spaceport and the exciting prospect of a first satellite launch before too long.
“On top of this, the Scottish Government will receive an extra £295 million funding, in additon to the largest block grant since devolution began. There can be no excuses for not providing excellent public services in Scotland.”
LABOUR PARTY LEADER SIR KEIR HARDY’s RESPONSE TO THE BUDGET:
There we have it. The last desperate act of a party that has failed.
Britain in recession.
The national credit card – maxed out.
And despite the measures today, the highest tax burden for 70 years.
The first Parliament since records began to see living standards fall, confirmed by this budget today.
That is their record. It is still their record.
Give with one hand, and take even more with the other, and nothing they do between now and the election will change that.
I mean – over 14 years, we have all seen our fair share of delusion from the party opposite.
A Prime Minister who thinks the cost-of-living crisis is “starting to ease”.
An Education Secretary who thinks concrete crumbling on our children deserves our gratitude.
The former Prime Minister who still believes crashing the pound was the right path for Britain.
And today – a new entry in this hall of infamy.
The Chancellor, who breezes into this chamber in a recession and tells the working people of this country that everything is on track.
Crisis, what crisis?
Or – as the captain of the Titanic and the former Prime Minister herself might have said. Iceberg – what iceberg?
Smiling as the ship goes down.
The ‘chuckle brothers of decline’.
Dreaming of Santa Monica, or maybe just a quiet life in Surrey not having to self-fund his election.
Whilst the crew behind them scramble around for a GB News lifeboat.
If only it weren’t so serious.
Because Madam Deputy Speaker, the story of this Parliament is devastatingly simple.
A Conservative Party – stubbornly clinging to the failed ideas of the past.
Completely unable to generate the growth working people need.
And forced – by that failure – to ask them to pay more and more, for less and less.
And as the desperation grows they torch, not only their reputation for fiscal responsibility, but also any notion they can serve the country, not themselves.
Party first, country second. While working people pay the price.
Food prices – still 25% higher than they were two years ago.
Rents up 10%.
An extra £240 pounds a month for a typical family remortgaging this year.
Because they lost control of the economy.
They sent interest rates through the roof.
They made working people pay.
They should be under no illusion – that record is how the British people will judge today’s cuts.
Because the whole country can see exactly what is happening here.
They recognise a Tory con when they see it, just as they did in November.
Give with one hand, take even more with the other.
Madam Deputy Speaker, people have been living through this nonsense for 14 years.
They know the thresholds are still frozen, dragging more and more people into higher taxes.
They know that a Tory stealth tax is coming their way in the shape of their next council tax bill.
The Levelling-up Secretary has told, not just this house, but every house in the country – he is coming for their council tax.
Give with one hand, Gove in the other.
But most insultingly of all the British people know, that the only cause that gets this lot out of bed is trying to save their own skin.
Take the desperate move, after years of resistance, to finally accept Labour’s argument on the non-dom tax regime.
Has there ever been a more obvious example of a government that is totally bereft of ideas?
And if they are sincere in support for this policy now, then the question they must answer today is – why not do it earlier?
Why did they not stand up to their friends, their funders, and their family?
Because if they had followed Labour’s example
3.8 million extra operations would have taken place by now.
1.3 million emergency dental appointments.
Free breakfast clubs for nearly 4.5 million children.
But if instead, this is just another, short-term cynical political gimmick then honestly – what is the point of them?
What is the point of a party that is out of touch, out of ideas and nearly out of road.
And we saw it last year as well – when only Labour’s policies on the cost-of-living made the difference.
And for those opposite a little downbeat about another intellectual triumph for social democracy, I say – get used to it.
Because with this pair in charge – it won’t be long before they ask you to defend the removal of private school tax relief as well.
But Madam Deputy Speaker, the harder they try with cynical games like this, the worse it will get for them.
Because the whole country can see exactly who they are.
Fighting for themselves. Politics not governing. Party first, country second.
And Madam Deputy Speaker, because we have campaigned to lower the tax burden on working people for the whole parliament – and we won’t stop now – we will support the cuts to national insurance today.
But I notice this – in 2022, when the Prime Minister was chancellor, he made this promise –
“I can confirm, in 2024, for the first time the basic rate of income tax will be cut from 20p to 19p.”
Having briefed that all week – that an income tax cut was coming – that promise is in tatters today.
And of course we support the fresh investment in our NHS.
Although I have to note, that the Chancellor – when he was health secretary 10 years ago – promised to make the NHS paperless by 2018.
And I know the Prime Minister’s fondness for Elon Musk extends to an enthusiastic embrace of his community notes on fact-checking. So I will say this bit slowly.
Labour supports the fuel duty freeze. That is our policy.
And I look forward to the Prime Minister’s acknowledgement of that in coming days.
We do ask the Chancellor to set out how he will make sure that this policy gets passed on to hard-pressed families at the pump?
Yet Madam Deputy Speaker, for all the fanfare around the tax measures today that straightforward story remains true.
Taxes – a 70-year high.
The British people – paying more for less.
An unprecedented hit to the living standards of working people.
The first time they’ve gone backwards over a Parliament, and they were cheering that today.
And the reason is equally simple. There is no plan for growth. How can there be?
He can say “long-term plan” all he likes. We see the results.
Last year he announced 110 growth measures. He said we’ve “turned the corner” – and where are we now, Britain in recession.
An economy smaller than when the Prime Minister entered Downing Street. The textbook definition of decline.
That is their record.
I mean, after 14 years, who do they actually think feels better off?
Productivity is flat.
Mortgages – through the roof.
Housebuilding – off a cliff.
Worklessness – rising and rising.
Homelessness – never higher.
Crime – virtually unpunished.
Children who can’t see a dentist.
Sewage in our rivers.
Billions and billions of taxpayers’ money wasted.
£7bn by the Prime Minister on Covid fraud alone.
£500m on the Rwanda scheme that has achieved precisely nothing.
I can keep going – a railway line that will never reach our great Northern cities.
In fact – might not even reach central London.
Billions upon billions for a white elephant without a trunk!
While today we learn – taxpayers are picking up the bill for the Science Minister’s libel.
And all the time – one thing that is growing – the waiting lists in our NHS now nearly 8 million.
They’ve had 14 years. 14 years. Running out of road.
Madam Deputy Speaker – this is what decline looks like.
And the complacency they have shown today – it takes your breath away.
Britain deserves better. Britain deserves – a real plan for growth.
An end to the 14 years of stagnation.
Wealth creation across the whole of our country.
Higher living standards for working people.
This is the mission we need.
But yet again, what we got was the same tired, old formula.
The sticking plasters. The chopping and changing. The party-first, country-second politics.
With no repudiation of the utterly discredited idea that economic growth is something the few gift to the many.
But even then Madam Deputy Speaker – I think his backbenchers are owed an explanation.
Because when the Chancellor says Britain has grown more quickly than countries like Germany, over the last 14 years, I am sure they will be shocked to learn that this is a statistical sleight of hand.
And when it comes to GDP per capita. In other words – the growth that makes the difference to the pockets of working people. Their record is much worse.
Indeed, in per capita terms – our economy has not grown since the first quarter of 2022.
The longest period of stagnation Britain has seen since 1955.
In fact, the Chancellor invited us to look at those figures – the OBR says GDP per capita will be 0.75% lower in 2028 than they forecast in November of last year.
That was the number they said we should watch – 0.75% lower in 2028.
And they can call this a technical recession.
But there is nothing technical about working people living in recession for every second the Prime Minister has been in power.
This is a Rishi recession.
And if the party opposite really wants to know what hides in the Chancellor’s spreadsheets, then they will see that it is only the record levels of migration they have delivered which has prevented an even deeper decline.
And that is a record they must stand on at the election.
Because – while on these benches we do not demean for a second, the contribution migrants make to a thriving economy – it is high time the party opposite was honest with the British people about the role migration plays in their economic policy.
Because right now – in terms of growth – that is all they have. There is nothing else.
No plan – to get Britain building again with a reformed planning system.
No ambition – to invest in clean British power for cheaper bills and energy security.
No inclination – to move away from insecure, low-paid jobs and strengthen employment rights so we can finally make work pay.
And Madam Deputy Speaker – where is the urgency on affordable housing?
How can they look at Britain now – and not see this is a massive priority?
Never again – will they be allowed to pose as the party of home ownership and aspiration.
Although I have to say – given the disaster that has befallen his childcare plans. Perhaps that is for the best.
Because Madam Deputy Speaker, the cost of childcare is a huge challenge for millions.
Parents need him to deliver on his promise.
And it seems the Chancellor has been taking lessons on marketing from the Willy Wonka Experience in Glasgow.
All is not as it seems.
And with just over three weeks to go he has to came clean.
Because up and down the country – parents need to know.
Will they get their entitlement in April?
Or is this just another example of their reckless on governing?
Headlines over delivery.
Promises without plans.
Policies that unravel at the first contact with reality.
The lesson – crystal clear, that those who broke our economy cannot be trusted to repair it.
The Tory credit rating is zero, it is time for change with Labour.
And that is what today’s budget should have been about.
A last chance for the Government to show it understands the economic reality of our volatile world.
That global supply chains can be weaponised by tyrants like Putin.
That a sticking plaster approach to public investment will cost Britain more in the long-run.
And that trickle-down nonsense means working people pay the price.
It could even have been a moment of contrition. A reflection on their fiscal recklessness.
An apology perhaps. For the ridiculous chaos they inflicted on the businesses, communities and investors in this country.
And yet still no stable industrial strategy.
Still no national wealth fund to crowd-in private investment.
Still no urgency on speeding up critical infrastructure projects.
And no recognition that they have left our standing as a country that always keeps its promises in tatters.
And if they don’t like that accusation. Then look no further than the grotesque spectacle of ducking their responsibility to the victims of the infected blood and Horizon scandals.
“One of the greatest miscarriages of justice in our nation’s history” – those were the Prime Minister’s words just two months ago.
Today – justice kicked beyond the general election.
No, Madam Deputy Speaker – Britain can see exactly who they are.
And the reality is, there is no path to economic stability, no way to a calmer, less chaotic politics, with the party opposite in power.
Because chaos is now their worldview. A mindset that sees Britain’s problems as opportunities they can exploit.
Whether, like the Chancellor, that’s out of desperation because they can’t solve them.
Or whether, like the Members for Fareham or South West Norfolk, they have no intention of solving them whatsoever.
For a party this weak and divided – the end result is always the same.
A vicious downward spiral.
Chaos feeding off decline.
Decline feeding off chaos.
While working people pay the price.
The British people know – this will not stop. Five more years and it will only get worse.
There will be no change in direction, without a change of government.
And that leaves Britain a nation in limbo.
Unable to shake off the Tory chaos that dragged us into recession and loaded the tax burden onto the backs of working people, and maxed out the nation’s credit card.
Britain deserves a government ready to take tough decisions.
Give our public services an immediate cash injection.
Stick to fiscal rules without complaint.
Fight for the living standards of working people.
And deliver a sustainable plan for growth.
So we say to the Chancellor and Prime Minister.
It is time to break the habit of 14 years.
Stop the dithering, stop the delay, stop the uncertainty.
And confirm 2 May as the date of the next general election.
Because Britain deserves better.
And Labour are ready.
Spring Budget ‘a betrayal of public services’
Deputy First Minister responds to Chancellor’s statement
The Spring Budget has failed to deliver the funding Scotland needs for public services, infrastructure and cost of living measures, Deputy First Minister and Finance Secretary Shona Robison has said.
The Budget provided less in Barnett consequentials from health than in-year health consequentials of 2023-24, and failed to deliver more capital funding for infrastructure.
The Finance Secretary said: “Today’s UK Spring Budget is nothing short of a betrayal of public services across the UK. Our hope had been the Chancellor would have eased pressures on services – not least by providing more funding for capital. This would have helped support our NHS and the delivery of more affordable housing, but it would also have created jobs and economic growth, as well as helping secure a just transition to net zero.
“When more support is desperately needed for public services and infrastructure, for greater cost of living measures, and for money to aid our efforts to reduce carbon emissions – Scotland has been badly let down by the UK Government.
“Today’s statement provides not a single penny more for capital funding. And the Barnett consequentials from health that were signalled by the Chancellor are actually less than the in-year health consequentials of 2023-24 and less than what is needed to address the pressures we face. I can guarantee that this Scottish Government will not be passing on this UK Government cut to our NHS.
“The National Insurance cut fails to offset the crippling effects of the Cost of Living crisis. There is also little detail of the spending cuts needed to pay for it. Even before today’s Spring Budget the Institute for Government described its spending plans as a ‘fantasy’, with no detail on where cuts will fall.
“Today’s statement merely adds to that: according to the UK Government’s own financial watchdog, the Office for Budget Responsibility, the Treasury may not even have the headroom available that today’s commitments are based on.
“Public services up and down the UK are in real need of investment, and they’re being sacrificed to deliver unsustainable tax cuts.”
A spokesperson for the Joseph Rowntree Foundation said: “Last year nearly 4 million people in the UK experienced destitution, including 1 million children. The number of people experiencing destitution has more than doubled in the last 5 years.
“❌ A 2p cut in National Insurance will not help those who need it the most.”
#Budget2024
TUC slams “deeply cynical pre-election gimmicks”
Cutting public services alongside tax cuts is “a political con trick – giving with one hand while taking with another” says union body
Commenting on today’s (Wednesday) budget and OBR report, which shows:
- Average GDP growth has been just 1.5% since 2010 – the worst for any government since the Great Depression.
- The UK’s pay crisis continues with this year’s real pay still below the 2008 level.
- The Conservatives have been the worst government for living standards since records began.
- Household unsecured debt is expected to rise by £1,600 per household this year.
TUC General Secretary Paul Nowak said: “This is a deeply cynical Budget. The Chancellor knows he won’t have to live with the consequences of the savage spending cuts he’s already imposed across large parts of our public services.
“At a time when our schools, hospitals and councils are on their knees, we needed a serious plan to rebuild Britain. All we got was wishful thinking on productivity and pre-election gimmicks.
“This was the last roll of the dice from a desperate government that has presided over 14 years of economic failure on growth and living standards.
“The Tories’ record speaks for itself.
“The worst real wage squeeze in modern history. The worst growth since the Great Depression. Crumbling classrooms and record NHS waiting lists.
“The country deserves so much better.”
On the cut to NI Paul said: “After 14 years of Conservative misrule millions are worse off.
“We all want to ease the financial pressure on families. But this is a political con-trick – giving with one hand while taking with another.
“No one wants tax cuts at the expense of their local services. We need a proper long-term plan to raise wages for everyone and to restore public services.”
On the Chancellor’s action to make non-domiciled residents pay their fair share of tax, Paul said: “The Chancellor’s action on non-doms is too little too late. People will never forget that when our schools and hospitals were starved of funds, the Tories put the very wealthiest first.
“His failure to act sooner on non-doms cost the exchequer billions in lost revenue.”
STAKEHOLDERS REACTION TO SPRING BUDGET:
Commenting on the overall Spring Budget package. Craig Beaumont, Chief of External Affairs, the Federation of Small Business said: “We’re pleased today to see the Chancellor bring forward positive measures to grow the economy – especially the increase to the VAT Threshold, a particularly key FSB ask for this Budget after a 7-year freeze, and the cut to self-employed National Insurance Contributions (NICs) which is a long-held campaign since FSB was formed 50 years ago this year.
“The Treasury has worked constructively with FSB through the Budget process, and there are several other measures in the full Budget that are welcome, including the extension of the Recovery Loan Scheme as it evolves to create the Growth Guarantee, and a clear direction to HMRC to reduce its administrative burden.
“This builds on positive measures announced in the Autumn Statement on tackling late payment as well as extending the 75% SME Retail, Hospitality and Leisure Business Rates Discount and freezing the small business rates multiplier – decisions that were tough choices given tight public finances, but target resources where they are most needed, and have the biggest bank for their buck – in small businesses right across the country.”
Doug Mutter, Director at VPZ, believes today’s proposed vape tax rise will penalise the most vulnerable in society and damage the UK’s 2030 Smoke Free ambitions.
He said: “Vaping is the most effective way for people to quit smoking and continues to transform the health and financial wellbeing of smokers throughout the country.
“From this perspective it is alarming that the Chancellor has announced a consultation for taxation on vaping products in today’s budget.
“Increasing taxes on vaping will directly penalise and make products prohibitive for the most vulnerable in society at a time when many are doing their best to make positive life choices.
“The idea of raising tobacco duty to encourage more smokers to switch, whilst at the same time introducing a punitive vaping tax, is fundamentally flawed and will only punish people looking to quit smoking.
“There is a genuine fear that any move in this direction will further fuel the illicit black market and act as a deterrent for people looking to quit, which will hugely damage the progress we have made in reaching the UK’s 2030 Smoke Free ambitions.
“Rather than exploring increasing taxation, the Government needs to take on board our recommendations and implement a licencing scheme where there are proper enforcement and policing in place to tackle youth uptake and the existing black market,” he added.
Irene Graham OBE, Chief Executive Officer, ScaleUp Institute said: ““The Budget today takes forward a number of important initiatives that should support the scaleup economy across the UK, including the new British ISA and Bond schemes and pension fund disclosures, alongside the skills and sector initiatives such as those linked to AI, Creative and Advanced Manufacturing.
“It is also good to see the announcements on LIFTS partners and the Growth Guarantee scheme, as well as the development of the PISCES initiative; each of which should further support funding towards scaling firms. We look forward to continuing to work with Government and the private sector on the implementation of these.”
A Kraft-Heinz spokesperson said: “We welcome the support this Budget will bring for businesses like Kraft Heinz which are looking to invest more in Britain’s future.
“In particular, the increased investment in GIGA will help us on our path to Net Zero; providing new funding for Hydrogen projects like the one we recently announced at our Kitt Green factory in Wigan.”
Commenting on the Childcare package, Chris McCandless, CEO , Busy Bees in Europe, said: “When the Chancellor announced the expansion of subsidised childcare for working families 12 months ago, we were supportive of the commitment to give more children the best start in life.
“To create the additional capacity, we needed to invest in our staff and centres. For any business that is difficult without funding certainty, so we’re very pleased that the Government has provided this clarity today.
“As the UK’s largest childcare provider, it gives us the confidence to invest to grow our business and support more families, in the knowledge that the funding we receive will rise in line with inflation and other critical fixed costs.”
Commenting on the freeze of alcohol duty from 1 August 2024 until 1 February 2025,Nuno Teles, Managing Director, Diageo GB: “Cheers to the Chancellor for freezing duty and backing both the pub and our homegrown Scotch sector.
“This decision gives drinkers and pub-goers across the country reason to celebrate this summer with a Guinness or Johnnie Walker!”
Commenting on Fuel Duty, Simon Williams, Head of Policy, the RAC said: “It’s positive to see the Chancellor has kept fuel duty low as drivers are still contending with major price increases at the pumps, sparked by the rising cost of oil.
“RAC Fuel Watch analysis shows petrol and diesel prices rose by 4p and 5p-a-litre in February – the largest increases in the last five months…”
With Jeremy Hunt today announcing the extension of the fuel duty relief, Richard Evans, head of technical services at webuyanycar comments: “With drivers set to continue to benefit from frozen fuel duty rates for another 12 months, the government relief will be a welcome boost for many motorists.
“Our research showed that rising motoring costs are unsurprisingly taking a toll, with 4 in 10 drivers (40%) trying to drive less as a result of expensive fuel.
“Drivers wanting to make the most out of their fuel can take small steps to save on consumption. Keeping their car in a good working condition will ensure fuel isn’t wasted on broken parts, and driving smoothly by accelerating gently and using the correct gear will save as much fuel as possible. These factors can have a big impact on fuel consumption which could end up saving drivers when getting around.
“Amidst the fluctuation of fuel prices, it’s important that drivers are aware of the cost to fill up and where they can get the best deal in their local area. Using our fuel cost calculator, drivers can estimate their weekly, monthly (and even annual) fuel spend.”
Ian Johnston, Osprey Charging CEO, said: “Today’s announcement of the spring budget from the Chancellor is a huge missed opportunity to increase access to public EV charging for the UK’s drivers.
“There have been calls from across the industry to lower the VAT rate on public charging from 20% to 5%, in line with that of charging at home, which would be a massive boost for EV drivers, and those considering the switch to electric.
“Osprey itself now has over 1,000 live public EV chargers available across Great Britain, and a vast number of EV drivers rely on the public network – a VAT reduction would have gone a long way in supporting those without access to a domestic charger.
“Here at Osprey, we will continue to advocate for a reduction in VAT on public charging to see an equalisation with the VAT level on domestic charging.
“In 2023, we successfully grew our public charging network by 150% and received a number of consumer accolades for the quality of our charging experience, but it’s imperative that this is supported by the government taking action in scenarios such as today’s budget.”
The Chancellor’s Spring Budget has been slammed as a ‘flop’ that will help drive hard working people and investors out of the UK by the CEO and founder of one of the world’s largest independent financial advisory and asset management organisations.
The comments from deVere Group’s Nigel Green follow Jeremy Hunt delivering his Spring Budget 2024 to Parliament. It was the Chancellor’s fourth fiscal event, coming just over three months after his 2023 Autumn Statement.
The deVere CEO says: “Going into the Budget, we already knew that the Chancellor would announce a further cut to national insurance and extend a freeze on fuel and alcohol duty in a bid to ease the strain on people’s finances.
“We knew this because it was announced in advance, presumably in an attempt to get as much mileage from the good news as possible with voters who go to the polls this year.
“But the fact remains that the personal allowance – the amount people can earn before starting to pay tax – and the thresholds for the higher and additional rates – are frozen again. This means that as wages increase, more people will be pushed into higher-rate tax bands.
“The tax burden in the UK is now to reach the highest levels in 70 years. The Chancellor is dangling the carrot to potential voters by hinting at more tax cuts to come in the next Parliament – but only if the Conservatives win the general election this year.
“Against this backdrop of increasing tax burdens, and an economy in a deeper-than-expected technical recession, meaning less investment for businesses and jobs, we expect that there will be a growing number of hard-working people across the country looking for work and life opportunities overseas.
“Being squeezed harder in the UK, it can be reasonably assumed that they will be looking at destinations that offer lower tax liabilities, a lower cost of living, a growing economy, and more career, as well as lifestyle, opportunities.”
Also, the non-domiciled tax status is to be scrapped by the Chancellor to fund tax cuts.
“The scrapping of the non-dom tax status is likely to be a ‘push factor’ from the UK, depriving the country of considerable direct and indirect investment as those affected are likely to simply move to more attractive jurisdictions.
“In many ways the Chancellor’s Spring Budget was lacklustre. It was a flop and that which could be a masterclass in the Law of Unintended Consequences as it could push more hard-working people and investors out of the UK.”
Commenting on the measures in the Spring Budget targeted at supporting the Creative Industries, Andrew Lloyd Webber said: “This is a once in a generation transformational change that will ensure Britain remains the global capital of creativity.”