5 Key Points of the UK Budget 2024 at a Glance

The UK Budget 2024 has arrived with a mix of economic strategies designed to tackle inflation, improve public services, and increase revenue. These updates impact everything from education funding to National Insurance, aiming to balance public investments and revenue generation.

Here is a breakdown of the most essential points of the UK Budget 2024 at a glance:

National Insurance Changes

One of the major changes in the UK Budget 2024 centers on National Insurance. Though employees will not see direct increases, employers will feel the impact. Starting in April 2025, employers’ National Insurance contributions will rise by 1.2 percentage points, reaching a total of 15%. This hike aims to bring in much-needed revenue, with projected gains of £25 billion annually by the forecast’s end.

Another notable shift is in the secondary threshold for National Insurance. Currently set at £9,100, this threshold will be lowered to £5,000, meaning employers will owe contributions sooner.

Tobacco and Alcohol Taxes

Taxes on tobacco will increase by 2% above the retail price index (RPI) inflation rate, while hand-rolling tobacco sees a 10% jump.

Marca / The UK Budget 2024 takes a firm stance on tobacco and alcohol by implementing tax hikes to raise revenue and discourage use.

Alcohol taxes are also on the rise, adjusted in line with RPI inflation. However, the budget offers a small perk for pub-goers: A 1.7% cut in draught duty, which translates to about a penny off each pint. Meanwhile, a new levy on vaping products seeks to curb usage by pricing them alongside tobacco, recognizing their growing popularity and health concerns.

Schools and Education Funding Boost

In an ambitious move, the UK Budget 2024 has allocated significant funds for schools and education, marking one of the biggest real-terms increases in recent years. The Department for Education will receive £6.7 billion in capital investment, with £1.4 billion earmarked for rebuilding over 500 schools that urgently need upgrades.

Apart from that, the school’s budget will see a £2.3 billion increase to help address teacher shortages and improve classroom resources. Funding for special educational needs will increase by £1 billion, emphasizing support for all students. Plus, higher education receives a boost, with £300 million allocated to bolster this sector.

Housing and Affordable Homes

Addressing the UK’s ongoing housing crisis, the UK Budget 2024 commits to a £5 billion investment in housing for 2025-26. This funding focuses on expanding affordable housing and tackling the long-standing issue of housing shortages.

E Online / By lowering right-to-buy discounts, the government aims to slow the sale of council housing. It will allow local authorities to reinvest sales proceeds into housing projects.

In addition to funding, the budget calls for hiring hundreds of new planning officers to speed up the housing approval process. This initiative is expected to accelerate the construction of affordable homes across the country, making it easier for first-time buyers and lower-income families to find housing.

Through these measures, the government seeks to alleviate housing pressures and support sustainable community growth.

Support for the Public Sector and Services

The UK Budget 2024 includes provisions aimed at improving public services and addressing pressing social needs. Healthcare, infrastructure, and welfare see increases, with resources funneled towards enhancing service quality and accessibility. From modernizing NHS facilities to investing in green projects, the budget addresses essential areas to promote a healthier and more resilient society.

On top of this, there is a clear focus on enhancing welfare support, though specific changes have yet to be fully detailed. The government acknowledges the need to protect vulnerable populations and support those affected by rising costs of living. The budget’s overall tone suggests a commitment to public welfare, with promises of a stronger safety net for those who need it most.