On Wednesday the 6th of March, Jeremy Hunt announced in Parliament what the Spring Budget will contain. This is expected to be the final budget ahead of an expected summer general election.
Taxation
The National Insurance tax will be reduced by 2%, on top of the 1% cut in the Autumn statement, for both employees and self-employed.
“a person on the average wage now has the lowest effective personal tax rate since 1975”
– HM Treasury.
National Insurance is a mandatory tax that means the taxpayer is eligible for a state pension once reaching 65 years of age and other benefits like Maternity Allowance.
Energy
The government is keeping the 5p fuel duty and extending it for another 12 months to help with the cost of living in the UK. The energy price cap has risen after the price of energy has decreased due to less market volatility and the decline of the price of oil, from its high of $92 per barrel, to $83 per barrel.
Alcohol, Cigarettes and Vapes
The government is extending the time the alcohol duty freeze is in effect. It will be extended from the 1st of August 2024 until the 1st of February 2025. This means 2p less duty tax on a pint of beer. Additionally, there will be a new tax on Vapes, Tobacco and associated products from October 2026. This is to raise further funding for the NHS and make Vapes and Cigarettes less accessible to reduce the harm of smoke pollution in streets.
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