UK Budget 2024 -Labour's first fiscal announcement in 14 years

Chancellor Rachel Reeves delivered her maiden budget speech yesterday, marking Labour's first fiscal announcement in 14 years. she unveiled several major tax changes and a new approach to government borrowing.

Here are some of the major changes coming to UK fiscal policy:

• The national living wage is set to increase to ￡12.21 per hour for those over 21, while minimum wage for 18-20 year olds will rise to ￡10.
• Employer national insurance contributions will rise from 13.8% to 15% , with payments starting at ￡5,000 salary instead of ￡9,100.
• The 75% business rates discount, due to expire in April 2025, will be replaced by a discount of 40% up to a maximum of ￡110k.
• Fuel duty will be frozen next year, maintaining the existing 5p cut for another year.
• A cut to duty on draft alcohol , "which means a penny off the pints at the pubs," the chancellor said.
• Both capital gains tax rates will increase – from 10% to 18% for basic rate, and 20% to 24% for higher rate.
• The government will extend the inheritance tax threshold freeze to 2030, maintaining the current ￡325,000 tax-free allowance.

Some of the other key announcements made :

??♂?No higher taxes in working people's payslips, no increase in NI, all rates of Income Tax, or VAT

?? National Living Wage increased to ￡12.21 p/h for full time workers.

????Increase in Carer's Allowance weekly earnings limit, meaning carers can work more hours without losing their entitlement

?? ￡1 billion provided to extend the Household Support Fund, helping those struggling with the cost of living

?? Extra two million NHS operations, scans and appointments a year

?? Recruitment of 6,500 teachers as we increase the Core Schools Budget by ￡2.3bn next year

?? Additional ￡300m allocation for further education next year

??Unfrozen income tax and NI contributions thresholds from April 2028 - personal tax thresholds uprated in line with inflation

??Frozen small business multiplier for a year, over 1 million small properties protected from inflationary bill increases

?? Frozen fuel duty - drivers will see no rise at the pumps next year??

??Compensation payments for victims of the Post Office and Infected Blood Scandals.

UK tech founders were pleased to learn in the budget that the so-called entrepreneur's relief isn't going anywhere. The tax break, officially known as business asset disposal relief, allows entrepreneurs to reduce their capital gains tax when they sell certain business assets or shares.

Find the chancellor's full speech here and join the conversation