Budget Summary: Highlights of Jeremy Hunt's Announcement

Chancellor Jeremy Hunt recently presented the latest budget to the House of Commons, the last before the upcoming general election.

Taxation

- National Insurance rates for workers and self-employed reduced by 2%.

- 'Non-dom' tax system will be overhauled in April 2025.

- New £5,000 ISA allowance for investing in "UK-focused" equities post-consultation.

Benefits and Income Support

- Full child benefits extended up to households where the main earner makes £60,000, up from £50,000, with partial benefits up to £80,000.

- Longer terms for benefit recipients to repay emergency loans.

- Continued support fund for cost of living challenges for six more months.

- Debt relief order fee of £90 abolished.

Cigarettes, Vapes, and Alcohol

- Alcohol tax freeze remains until February 2025.

- Vaping products tax based on nicotine levels starting October 2026.

- Cigarette duty increases by £2 per 100 cigarettes to maintain vaping's affordability.

Transport and Energy

- Fuel duty remains unchanged, extending the 5p reduction for another year.

- 'Windfall' tax on energy company profits will continue to 2029.

- Air passenger duty to increase for business class flights.

- £160 million purchase of Wylfa nuclear site in Wales.

- Additional £120 million in green energy funding.

Housing

- Capital gains tax on property sales reduced from 28% to 24%.

- Tax advantages for holiday property owners discontinued.

- Stamp duty relief for buying multiple homes ends in June.

Public Debt, Inflation, and the Economy

- Economy growth predicted at 0.8% for the current year, 1.9% for next year, and stabilizing around 1.7%-2% up to 2028.

- Inflation is expected to drop below a 2% target by late June, reaching 1.5% next year.

- Public debt projected at 91.7% of GDP, increasing slightly next year.

- Government spending to grow 1% in real terms over five years.

- NHS budget to increase by £2.5 billion, with an additional £3.4 billion for productivity by 2030.

Business and Investment

- VAT registration threshold for small businesses raised to £90,000 starting April.

- Extension of Covid-era small business loan scheme to March 2026.

- Permanent tax relief for touring and orchestral productions.

Other Measures

- £1 million allocated for a memorial honoring Muslims who served in the World Wars.

- New tax credit introduced for independent UK films with budgets under £15 million.