Budget 2024: When is it and what will it mean for my money?

The budget statement is delivered in the House of Commons annually and provides a guide to what the government intends to do financially. Specifically, where they are committed to spending more money, how the funds will be raised, and whether there will be any tax hikes or cuts.

The 2024 spring budget will be delivered by Jeremy Hunt on Wednesday 6th March. As always, there is a lot of speculation about what it may contain.

The timing of the budget

Jeremy Hunt is the chancellor of the exchequer, making him responsible for government finances. He’ll deliver his final budget before the next general election at 1230pm. It usually lasts about an hour and is broadcast live on the BBC news website as well as BBC iPlayer.

What the budget is likely to mean for your money

While it is impossible to know exactly what Jeremy Hunt will say in his budget, there have been several clues. The chancellor is aiming to reduce the cost-of-living crisis, and one way in which he could do this is via income tax. However, even a 1% reduction in the tax rate would cost the country approximately £7 billion a year¹ and the government would need to make the money up elsewhere.

Hunt is also rumoured to be looking at a 1% cut in the National Insurance rate, which would cost the government £4.5 billion a year¹. Again, the funds would need to be made up elsewhere.

Other reports suggest Hunt could introduce the 99% mortgage, reducing the amount of funds a first-time buyer needs but potentially causing a negative equity issue.

Vaping is also likely to be targeted. Disposable vapes have already been banned and Hunt is likely to create a new tax on vapes. A 5 pence per litre increase in fuel duty is also likely to happen at the end of March. Cancelling it would cost the government around £2 billion¹, making it unlikely to happen.

Inheritance tax rates look likely to be reduced. However, this doesn’t affect the majority of people as only 4% of UK estates have to worry about inheritance tax¹.
As always, we’ll keep you updated on the latest developments and we are here to help.

Sources

1.    https://www.bbc.com/news/business-68359756

All the information in this article is correct as of the date of publishing. The opinions expressed in this publication are those of the authors Euxton Mortgage Market. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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March 2024