11 Downing Street is home to Chancellor of the Exchequer and where the budget is drafted

Budget 2024 Analysis

In a rather combative presentation, Chancellor Jeremy Hunt delivered what is widely expected to be the last budget statement before the general election. With limited headroom and the now usual trail or announcements in the lead up to his commons speech, there were no big surprises arising from this budget. Even the 2p reduction in the National Insurance contribution paid by employees, which was supposed to be his big curtain call announcement, had already been ‘leaked’ before the budget.

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Is the VAT Threshold Stunting Growth?

The VAT threshold, the point at which you must register for VAT, has remained at £85,000 for some time despite the fact we’ve seen double digit inflation. There is now concern that this ceiling is stunting economic growth and may be forcing some business to close their doors. The main issue relates to those businesses that have taken an active decision to remain below the threshold because they fear registering for VAT would make them uncompetitive.

11 Downing Street is home to Chancellor of the Exchequer and where the budget is drafted

Autumn Statement Summary

On Wednesday 22nd November 2023, Chancellor Jeremy Hunt delivered his Autumn Statement. With an election now on the horizon, he was always going to be hunting for some headlines whilst acknowledging that living costs are still high, inflation is still more than double its target rate of 2%, borrowing and debt remain at near record levels and wars rumble on in Ukraine and the Middle East, creating uncertainty and nervousness in global markets. So, what did he announce and what does it mean for you?


The breaking point for pensions?

Since the pension triple lock was first introduced in 2010, the economic circumstances have always meant that it’s a manifesto commitment that any party is willing to stand behind, after all, who wants to be the political party that alienates the ‘grey pound’?

But in 2023, off the back of double-digit price inflation and significant pay increases, the triple lock is looking like an expensive policy for the government to apply.

Cliff edge tax traps for middle income earners

The freeze on income tax thresholds is creating a series of tax cliff edge situations for middle income earners according to analysts. The Chancellor has made clear that the income tax thresholds will not change for a ‘few years’ meaning thousands of people are finding themselves paying more tax as their pay increases move them into the next bracket or create effective tax rates through loss of other income streams.