What was announced in the 2024 Spring Budget?

Chancellor Jeremy Hunt announced his 2024 Spring Budget, which looked to focus on cuts.

He said the UK economy has dealt with the financial crisis, the pandemic and energy crisis caused by Russia’s invasion of Ukraine.

Mr Hunt acknowledged that interest rates “remain high as we bring down inflation”, but added:

“We can now help families not just with cost of living support but with permanent cuts in taxation.”

He called it a “budget for long-term growth”.

It was reported that national insurance would be cut by 2p in a move designed to offer voters a pre-election giveaway but which could mean steeper spending cuts after the election.

Mr Hunt is preparing to announce the second big cut to employment taxes in a year, after his decision to cut national insurance rates by 2p in 2023’s autumn statement.

The move should save the average earner £450 a year, which combined with last year’s cut will add up to £900.

However, the chancellor has been looking at further public spending cuts after the election as one way to pay for the tax reduction, despite economists’ warnings that such a move would cause public services to buckle.

Ahmed told DESIblitz that he believes Mr Hunt’s Spring Budget was nothing more than to create problems for the next government following the 2024 General Election.

He said: “Hunt is trashing the country because they are more interested in f*****g over the next government than literally anything else.”

Mr Hunt began his Budget speech by saying he would allocate £1 million towards building a war memorial for Muslims who fought for Britain.

He said: “I start today by remembering the Muslims who died in two world wars in the service of freedom and democracy.

“We need a memorial to honour them, so following representations from the member for Bromsgrove [Sajid Javid] and others, I have decided to allocate £1 million towards the cost of building one.

“Whatever your faith or colour or class, this country will never forget the sacrifices made for our future.”

But according to student Riya, the announcement seems nothing more than to appease the Muslim community, given that issues surrounding Islamophobia have been thrust back into the spotlight.

She explained: “The first announcement is that £1 million will be used to build a memorial to Muslims who fought during World War 2.

“Is every religion in the UK going to have a £1 million memorial built?

“Doesn’t the Cenotaph represent all lives lost?

“This seems like blatant appeasement to me.”

He went on to say that the OBR has predicted that inflation will fall below two per cent in 2024. It is currently four per cent.

Mr Hunt said the Conservative Party will “always put sound money first”.

“Because of the progress we’ve made, because we are delivering the prime minister’s economic priorities, we can now help families not just with temporary cost of living support, but with permanent cuts in taxation.”

As Labour heckled, Mr Hunt claimed Tories know “lower tax means higher growth. And higher growth means more opportunity, more prosperity and more funding for our precious public services”.

But Mr Hunt warned that growth could not come from “unlimited migration”, but from a high-skilled, high-wage economy, and claimed Labour’s plans for government would “destroy jobs with 70 new burdens on employers”.

He added: “Instead of going back to square one, the policies I announce today mean more investment, more jobs, better public services, and lower taxes in a Budget for long-term growth.”

Ahead of the autumn statement, the OBR forecasted that headline debt would rise to above 100% of GDP.

But “today they say it will fall in every year to just 94 per cent” by 2029.

Mr Hunt added: “Our underlying debt is therefore on track to fall as a share of GDP, meeting our fiscal rule. And we continue to have the second lowest level of debt in the G7.”

The Spring Budget also unveiled temporary cost of living support and permanent cuts in taxation.

Mr Hunt said this decision will provide much-needed help in challenging times and because “lower taxes mean higher growth”, which means “more funding for our precious public services”.

For households falling into debt, Mr Hunt announced an extension on the payment period for new loans from 12 months to 24 months.

The best way to resolve debt for many people is through a debt relief order, which costs £90.

Mr Hunt said he would relieve pressure on around 40,000 families every year by abolishing the £90 charge.

The household support fund, which was due to conclude earlier in March, will also be continued at current levels for another six months.

Mr Hunt said: “Next the Household Support Fund. It was set up on a temporary basis and due to conclude at the end of this month.”

He said that “now is not the time to stop the targeted help it offers” and added “we will therefore continue it at current levels for another six months”.

Despite the extension, people like Raj have wondered why it is only six months and not longer.

He said: “The Household Support Fund will continue for another six months but what will happen after that?”

The alcohol duty freeze has been extended until February 2025, which would benefit 38,000 pubs.

Motorists will also receive a boost as fuel duty will be frozen for the 14th year in a row.

Small businesses will be provided with £200 million of funding to extend the Recovery Loans Scheme as it transitions to the Growth Guarantee Scheme.

And Mr Hunt announced he would increase the VAT registration threshold from £85,000 to £90,000 from April 1, which is the first increase in seven years, which he claimed would lift tens of thousands of businesses out of paying VAT.

Following the Spring Budget, the Scottish government will get nearly £300 million in Barnet formula consequential.

The Welsh Government will receive nearly £170 million, while the Northern Ireland Executive will receive £100 million.

According to Mr Hunt, the UK is on track to become the next Silicon Valley.

The Chancellor announced that he would unlock more pension fund capital, give new powers to the pensions regulator and FCA, and make sure some vehicles make it easy for pension funds to invest in UK growth opportunities.

The government will continue to explore how savers can take their pension pots with them when they change jobs and create a new British savings bond which offers a fixed guaranteed rate for three years.

A reform to the ISA system was also announced “to encourage more people to invest in UK assets”.

The new British ISA will allow an additional £5,000 annual investment for investments in UK equity with all the tax advantages of other ISAs.

Jeremy Hunt has announced new tax reliefs for the British film industry, with a new tax credit for films with budgets of less than £15 million.

He announced that “in recognition of their vital importance to our national life”, tax reliefs for theatres and orchestral productions would be made permanent – to ensure “Britain remains the global capital of creativity”.

Mr Hunt also outlined plans for the NHS, which include better daily spending and an overhaul of the IT systems, using AI to help.

However, some were unconvinced by Mr Hunt’s claims, with student Omar wondering if Infosys, which was founded by Rishi Sunak’s father-in-law, would be the new IT provider for the NHS.

He said: “I wonder if Infosys will win the contracts to provide IT systems for the nation.”