Chancellor Jeremy Hunt has delivered the 2024 spring budget to the House of Commons. The statement on Wednesday outlined the state of the UK economy, shared projections from the Office for Budget Responsibility and announced plans for the year ahead.
The chancellor set out changes that will help hard-pressed households, including freezing fuel duty and extending the 5p cut for a further 12 months.
When do budget changes come into effect?
Some of the changes announced in the budget such as the rates of duty on alcohol and tobacco, will take effect immediately on budget day or soon after.
There will be a four-day debate on the budget resolutions, which covers the tax measures announced in the budget and different policy areas such as health, education and defence. If the House of Commons agrees to them, budget resolutions can come into effect immediately but they require the Finance Bill to give them permanent legal effect.
Can the budget be changed?
Members of Parliament have the opportunity to propose amendments, discuss specific measures and vote on changes during the scrutiny debate.
What changes were announced in the budget?
Among many changes, Hunt announced a 2p cut in National insurance, which follows a reduction of the same amount in the autumn statement last year.
He also said alcohol duty, which was set to rise by 3 per cent from August, will be frozen until February 2025. Hunt said: “This benefits 38,000 pubs all across the UK – and on top of the £13,000 saving a typical pub will get from the 75% business rates discount I announced in the autumn. We value our hospitality industry and we are backing the great British pub.”
In addition, Hunt said there will be a tax on vaping products introduced in October 2026 and one-off increase in tobacco duty.
The 5p cut in fuel duty on petrol and diesel, which was due to end this month, will continue for another year. He announced the government will reduce the higher rate of property capital gains tax from 28 per cent to 24 per cent, as well as an increase in the VAT registration threshold for small business from £85,000 to £90,000, starting in April.
The chancellor also announced that the household support fund, which was due to end this month, has been extended, following warnings from charities and campaigns by councils that families would suffer if it was cut. Hunt said that after “listening carefully” to representations about the household support fund he will “continue it at current levels for another six months”.
Along with these changes, Hunt announced a £1m budget for a memorial to honour Muslims who fought in the world wars.
