Key takeaways
On 6 March 2024, Chancellor of the Exchequer, Jeremy Hunt, delivered his latest Spring Budget.
It was the last scheduled Budget before the next general election, and placed tax cuts for workers and parents at the heart of the statement.
We have compiled an overview of the key takeaways and announcements.
On-demand
Listen in to our panel of leading industry experts, who offered clarity and answered questions regarding the Spring Budget 2024. The expert-led discussion explored ongoing consultations and any policy changes that may affect your fleet.
Vehicle tax
- Fuel duty has been frozen (again) for another 12 months, and the “temporary” 5p cut (due to end this month) has been extended.
- The government will seek to extend full expensing to assets for leasing when fiscal conditions allow and will publish draft legislation shortly.
Taxation and pension
- From 6 April the employee main rate of National Insurance (NI) will be cut by another 2p from 10% to 8%.
- From 6 April the main rate of NI for the self-employed will be reduced from 9% to 6%.
- VAT registration threshold will go up from £85,000 to £90,000 from April 1 2024.
- New duty on vaping products to be introduced from October 2026, subject to consultation – at which time there will also be a one-off increase in tobacco duty.
- The higher rate of property capital gains tax is to be reduced from 28% to 24%.
- Changes to tax breaks for residents in UK with non-domiciled (non-dom) status. The new regime will mean that anyone who has been a tax resident in the UK for more than four years will pay UK tax on foreign income and gains.
Support to work
- Changes to the child benefit system will be implemented by April 2026, where assessing the High Income Child Benefit Charge will be based on total household income rather than individual earnings.
- Another change to the child benefit system – from April 2024 the high-income benefit threshold will move from £50k to £60k.
Communities and wellbeing
- £3.4bn investment in NHS productivity plan, to include expanding AI use for quicker cancer diagnosis, cutting admin and freeing up capacity and transforming access and services for patients.
- £2.5bn for NHS in 2024-25 to protect day-to-day funding levels.
- £230m investment in pilot schemes of police technology to improve productivity.
- The Household Support Fund, which allows local councils to help families via food banks, warm spaces and food vouchers, will be extended beyond 31 March for six months.
