Chancellor to deliver budget later
It's Labour's first budget for 14 years
Last updated 30th Oct 2024
Rachel Reeves will become the first female Chancellor to deliver a budget later today as she delivers Labour's first budget for 14 years
The content of today's budget, which will happen in the Commons after Prime Minister's Questions has been the subject of speculation for weeks.
Some of what she'll say is already known, like cash for the NHS and a minimum wage increase - with speculation too of a hike in employer contributions to national insurance
What are we expecting to be in the budget?
So what are we expecting to be in today's budget and how might it affect you?
Growth Deals
There is expected to be an update on the paused Northern Ireland Growth deals for Causeway Coast and Glens and the Mid South West
Speaking ahead of today's budget Stormont’s Finance Minister Caoimhe Archibald said “I’m very hopeful we will get clarity in relation to our city and growth deals.”
“It was a reprehensible decision to pause the funding commitment in relation to Causeway Coast and Glens and the Mid South West, and I hope the Chancellor makes the right call on that and that common sense prevails”
“Those are really important projects for both of those regions and an awful lot of work has already went into development projects.”
“What I’m hoping to see is a different approach from the new British Chancellor that is going to prioritise public services.”
The Minister also said she is expecting confirmation around Barnett Consequentials for the rest of the financial year.
Minimum wage
One thing we know definitely will happen is an increase to the minimum wage.
It was announced yesterday that the minimum wage will rise to £12.21 an hour next year after the Chancellor confirmed a 6.7% increase .
Rachel Reeves described the move as a “significant step” towards delivering on Labour’s manifesto promise to introduce a “genuine living wage for working people”.
The increase, recommended by the Low Pay Commission, will mean an extra £1,400 a year for a full-time worker earning the main minimum wage rate, known as the national living wage, from April 2025.
But it still falls short of the £12.60 per hour UK living wage calculated by the Living Wage Foundation.
The Chancellor also announced that the minimum wage for people aged 18-20 would rise to £10 an hour, an increase of £1.40.
Taxes
There has been lots of headlines around tax increases in the lead up to this budget with the Chancellor previously hinting at a possible National Insurance hike for employers, something which has left small business owners "seriously concerned"
Contributions for employers are expected to go up by at least one percent as part of Government plans to raise funds without hiking taxes on "working people" as per its manifesto promise, which committed to not increasing taxes on income tax, VAT or employee national insurance.
Lorraine Nelson from BDO Northern Ireland said she is worried about the impact on small businesses, "It's very much a budget for people who are getting a pay slip every week or every month. It's not so good for anyone who is maybe an entrepreneur because they will be hit now with the additional cost of staff and if they want to sell their business they might not be able to get the good tax reliefs as well."