Budget 2024 LIVE: Chancellor Jeremy Hunt announces 2p National Insurance cut and abolishes non-dom status

U.K. Finance Minister Jeremy Hunt is presenting the Spring Budget, likely the last major fiscal event before the upcoming challenging General Election for the ruling Conservative Party.

Here are the key points on major issues stated by Hunt:

GROWTH:

The Office for Budget Responsibility (OBR) forecasts economic growth of 0.8% this year and 1.9% next year, marking a 0.5% increase from their autumn prediction. Growth is expected to reach 2%, 1.8%, and 1.7% in 2028.

DEBT:

Initial forecasts suggested that headline debt would exceed 100% of GDP. However, the latest projections indicate a decrease to 94.3% by 2028-29. Underlying debt, excluding Bank of England debt, is expected to be 91.7% in 2024-25, gradually decreasing to 92.9% by 2028-29. Additionally, we're ahead of schedule in meeting our fiscal rule for public sector borrowing, with borrowing projected to decline to 1.2% of GDP by 2028-29.

ECONOMIC PRIORITIES:

Our progress has enabled us to achieve the prime minister's economic objectives, allowing us to implement permanent tax cuts alongside temporary cost of living support.

INFLATION:

Inflation is currently at 4%, surpassing our commitment to halve it. Forecasts suggest it will drop below the 2% target sooner than anticipated.

HOUSEHOLD SUPPORT:

Despite initial forecasts indicating a 2% decline in real household disposable income per person, it is now set to rise by 0.8%. The Household Support Fund will continue at its current levels for another six months to assist in combating inflation.

ALCOHOL, FUEL DUTY:

We've chosen to prolong the 5p cut and freeze fuel duty for an additional 12 months. This will lead to considerable savings for the average car driver and contribute to reducing headline inflation by 0.2 percentage points in 2024-25.

Although inflation has decreased more rapidly than expected and market expectations for interest rates have decreased since Hunt’s Autumn Statement, many British households are still facing financial challenges, and public services are under significant strain. Jeremy Hunt announced the government's plan to privatize its remaining 31% stake in NatWest, acquired during the Great Financial Crisis, potentially selling it to retail investors by this summer.

Hunt's statements encompassed crucial announcements, spanning investments, fiscal measures, and support initiatives aimed at strengthening the economy and aiding households and businesses, and below, you'll find the pivotal announcements he made.

Hunt highlights AstraZeneca's ￡650 million investment in the U.K., expanding its presence in Cambridge Biomedical campus and Liverpool's manufacturing hub.

He pledges an additional ￡45 million for medical research, focusing on cancer, dementia, and epilepsy.

Moreover, Hunt commits ￡200 million to extend the recovery loan program and raise the VAT registration threshold from ￡85,000 to ￡90,000, relieving many small businesses from VAT obligations.

Emphasizing the U.K.'s potential to rival Silicon Valley, he introduces the "British ISA," enabling investments up to ￡5,000 in British companies, akin to the popular tax-free ISA savings account.

Additionally, Hunt announces plans to enhance transparency in pension fund investments and anticipates a reduction in government borrowing, meeting fiscal targets sooner than expected.

Economic forecasts from the Office for Budget Responsibility indicate GDP growth at 0.8% this year, rising to 1.9% next year, and sustaining growth at 2.2%, 1.8%, and 1.7% in 2028/9.

Debt as a percentage of GDP is projected to decline annually to 94% in 2028/29, with underlying debt following a similar trajectory, aligning with fiscal objectives and maintaining low government debt levels in the G7.

Public sector borrowing is forecasted to decrease from 4.2% of GDP in 2023/4 to 1.2% in 2028/9, reaching its lowest level since 2001.

Hunt extends the temporary 5 pence cut to fuel duty and alcohol duty freeze, aiding in reducing headline inflation and advancing towards the Bank of England's 2% target.

Furthermore, he abolishes the ￡90 charge for debt relief orders and extends the repayment period for advance loans from 12 to 24 months, providing financial relief to individuals.

Inflation is expected to dip below the Bank of England's target in the near term, facilitating permanent tax cuts to support families and stimulate economic growth towards a high-wage, high-skill economy.

Initiating his address, Hunt announces ￡1 million for a memorial commemorating Muslims who served in the two World Wars.

In brief, Hunt's comprehensive address covered a spectrum of vital updates, ranging from substantial investments to strategic fiscal policies, all aimed at fortifying the nation's economic landscape and delivering essential support to its populace.