March Press Release: Spring Budget Announcement
The Spring Budget entails the Chancellor of the Exchequer providing the public with a Financial Statement, an update on affairs relating to the UK economy, potential tax changes and cuts, as well as the Government’s financial plans for the forthcoming year.
Three interesting facts about the Budget
· On 18th April 1853, William Gladstone made the longest Budget speech to date, lasting 4 hours and 45 minutes in total!
· The drink choices of Chancellors while giving their speech has varied over the years. William Gladstone’s tipple was sherry with beaten egg, while Gordon Brown opted for mineral water.
· Geoffrey Howe, who was Chancellor between May 1979 and June 1983, named his dog ‘Budget!’
This year, the Spring Budget took place at 12:30pm on Wednesday 6th March and was delivered by Jeremy Hunt.
Dan Whittaker, a personal finance expert at vivamoney.co.uk, shares 8 key takeaways from the 2024 Spring Budget and explains what this could mean for you.
1. Cuts to National Insurance
‘National Insurance has been cut by 2p in the pound for employed workers. This is the second time in six months that reductions have been made, with initial cuts announced during the 2023 Autumn Statement. An equivalent cut is also in place for self-employed workers.
‘National Insurance reductions will come into force from 6th April and are predicted to grant the average waged employee an additional £450 a year. Those who are self-employed can expect to gain around £350 a year.
‘Taking October’s cuts into consideration, this equates to possible overall savings of approximately £900 per annum.’
2. Six-month extension on the Household Support Fund
‘From bills and rent to groceries and transport, many of us have struggled with rising costs over the past couple of years. Sadly, some have been left in a position whereby they are unable to fund necessities, like heating and clothing. Any additional help can be a real lifeline and could be the difference between a warm meal and going without food for days at a time.
‘During the 2024 Spring Budget, the Chancellor announced a further six-month extension on the Household Support Fund, which is currently in place to help local authorities support vulnerable families with things such as access to food banks and essential items.’
3. Alterations to Budgeting Advance Loan repayments
‘Providing certain eligibility criteria is met, those claiming Universal Credit may be able to apply for a Budgeting Advance Loan. This can help to cover the cost of financial emergencies, such as a broken fridge or a packed-up boiler,’ Dan explains. ‘Currently, the loan repayment period is 12 months. In-line with the 2024 Spring Budget, the Chancellor has advised that new loans will be granted a 24-month repayment term.’
4. Debt Relief Order (DRO) fee scrapped
5. Changes to Child Benefit thresholds
‘Currently, households where the highest-earning parent earns more than £50,000 a year must pay a Child Benefit tax charge if they continue to claim this benefit. From April, the threshold will rise to £60,000. The Chancellor predicts that this change will benefit 170,000 more families.
‘In addition to this, partial Child Benefit will also be paid to households where the highest-paid earner receives an annual salary of up to £80,000.’
6. A new British ISA
‘While more details are expected to be released following consultations, a new British ISA has been promised. As it stands, those putting money into ISA savings are allocated an annual tax-free allowance of £20,000. The new British ISA will see that this figure is increased to £25,000.’
7. Extension of the fuel duty freeze
‘This one is likely to be welcome news for UK drivers, who have recently had to contend with reports that car insurance premiums are expected to rise between 10 and 12.6% in 2024,’ Dan says. ‘Fuel duty is the tax included in the overall price you pay for petrol, diesel, and heating inside your vehicle. Fuel duty was originally frozen at 52.95p per litre in March 2022, and was due to end later this month. The Chancellor has announced that the freeze will now be extended for another year.’
8. Alcohol duty extended until February 2025
‘During the Spring Budget, the Chancellor said that he would ‘back the great British pub.’ This statement came alongside the announcement that the alcohol duty freeze has also been extended. The existing freeze is now forecast to remain in place until February 2025.’
Viva Money has shared key takeaways from the spring budget and explained what they mean for you.
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About Viva Money
Viva Money is not a lender but is a fully regulated and authorised credit broker. Viva Money is a registered Trading Name of Digitonomy Limited, Registered in England and Wales (Company number 08385135), Registered Office; Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN. Digitonomy Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference number: 690249. Licenced by the Information Commissioners Office, (registration number ZA007309)
Website: https://vivamoney.co.uk/
Dan Whittaker - Personal Finance Expert at Viva Money
Dan has strong market and product knowledge across a range of consumer finance products including, but not limited to, credit cards, savings, loans, and mortgages.