National Insurance cut and everything else you need to know from today's budget
From child benefit changes to a freeze on alcohol and fuel duties - here's everything you need to know
Last updated 6th Mar 2024
Jeremy Hunt cut personal taxes in today's Budget - confirming a drop in National Insurance.
The Chancellor confirmed a 2p cut in national insurance for employees and the self-employed as the centrepiece of a Budget which was designed to persuade voters to stick with the Conservatives rather than give Sir Keir Starmer the keys to No 10.
But what were the big announcements from today's Budget and how will they affect you?
2p cut in National Insurance
This was the big headline measure which we had expected - a 2p cut in National Insurance.
A cut in national insurance from 10% by 8% which could save the average worker £450 a year according to Mr Hunt, adding up to a £900 saving for 27 million employees when combined with a cut last autumn.
Cut to fuel duty extended
Chancellor Jeremy Hunt said he would maintain the 5p cut and freeze fuel duty for a further 12 months.
He said: If I did nothing fuel duty would increase by 13% this month.”
“I have as a result decided to maintain the 5p cut and freeze fuel duty for a further 12 months. This will save the average car driver £50 next year and bring total savings since the 5p cut was introduced to around £250."
Alcohol duty freeze continued
Alcohol duties will remain frozen until February 2025, Jeremy Hunt said, with the aim of “backing the great British pub”.
The Chancellor told the Commons: “In the autumn statement I froze alcohol duty until August of this year. Without any action today, it would have been due to rise by 3%.”
“So today I have decided to extend the alcohol duty freeze until February 2025."
Threshold for losing child benefit increased
From April, the individual yearly income at which your child benefit is charged increases from £50,000 to £60,000.
The Chancellor also said he wanted to change the charge in the future so it takes into account household income, rather than individual's income.
Vaping tax introduced and tobacco tax raised
An excise duty will be introduced on vapes from October 2026, alongside a one-off increase in tobacco duty which is designed to make vaping a cost-effective solution for those wanting to quit smoking.
Non-dom tax status scrapped
The Chancellor committed to scrapping the non-dom status for wealthy foreigners, putting the £2.7 billion a year raised as a result towards tax cuts.
Arts and film funding
Mr Hunt said the Government will provide eligible film studios in England with 40% relief on their gross business rates until 2034.
The National Theatre will also get £26 million of funding to upgrade its stages.”
A new British ISA
The Chancellor announced a new 'British ISA' which will give an extra £5,000 tax-free savings for those investing in the UK.
What else was mentioned in the Budget?
Funding aimed at supporting vulnerable households with the costs of basic goods, and heating their homes through the cost-of-living crisis, will be extended for a further six months.
The Household Support Fund was due to wrap up at the end of March, but should now continue until September.
Also the windfall tax on the profits of oil and gas producers will be extended until 2029, with the aim of raising £1.5 billion in tax.
£3.4 billion for the NHS was announced to modernise their IT systems.
The North East of England will be awarded a trailblazer devolution deal, potentially worth more than £100 million.
The West Midlands Combined Authority will be awarded a further £15 million for cultural, heritage and investment projects, while counties including Buckinghamshire, Warwickshire and Surrey will get further devolved powers.
The VAT registration threshold will be increased from £85,000 to £90,000 from the start of April, with the aim of taking “tens of thousands” of businesses out of paying it altogether in order to help them grow.
What has the opposition said?
Sir Keir Starmer has branded the Chancellor’s budget “the last desperate act of a party that has failed”.
Mr Starmer continued: "Britain in recession, the national credit card maxed out, and despite the measures today, the highest tax burden for 70 years.
“The first Parliament since records began to see living standards fall, confirmed by this budget today.
“That is their record, it is still their record, give with one hand and take even more with the other, and nothing they do between now and the election will change that.”