Autumn Budget '24

• Who is the chancellor that announced the budget?

  Rachel Reeves
• What was the main focus of Rachel Reeves' first budget?

  To announce a significant increase in public spending
• How was the increase in public spending financed?

  By a combination of tax rises and higher borrowing
• What did commentators note about the extra spending?

  It would mean better funded public services
• What did the Office for Budget Responsibility forecast regarding GDP?

  There would be no medium-term boost to GDP from the measures
• What was the economic context at the start of 2024?

  Momentum in the UK economy had picked up
• What happened to GDP in the first half of 2024?

  It returned to growth at the fastest pace in two years
• By how much was GDP in the second quarter of 2024 higher than in the fourth quarter of 2019?

  1. 9%
• How did population growth affect GDP per person?

  The recovery in GDP per person was more subdued
• What was the consumer prices index (CPI) increase in the 12 months to September 2024?

  1. 7%
• Why was the CPI increase significant?

  It was the lowest year-on-year rate of inflation since April 2021
• What did the Bank of England's monetary policy committee expect regarding inflation?

  Inflation is expected to rise somewhat over the rest of the year
• What was the official interest rate cut to in August 2024?

  5%
• What did the monetary policy committee judge in September 2024?

  A gradual approach to removing policy restraint remains appropriate
• How much was government borrowing since the start of the current fiscal year as of September 2024?

  £79.6bn
• What was the reason for higher borrowing compared to the OBR’s forecast?

  Higher than expected government spending on goods and services
• What was the estimated public sector net debt as a percentage of GDP at the end of September 2024?

  98.5%
• How did the public sector net debt at the end of September 2024 compare to the previous year?

  It was four percentage points more than at the end of September 2023
• When did Rachel Reeves deliver the first budget of the new Labour government?

  30 October 2024
• What was the budget described as by the chancellor?

  A budget to “rebuild” Britain
• How did the budget compare to the previous government's plans?

  It raised public spending, tax, and government borrowing
• What was the forecast for cumulative borrowing between 2024/25 and 2029/30?

  £142bn higher than previously expected
• What did the OBR say about the fiscal loosening of the budget?

  It represented one of the largest fiscal loosenings of any fiscal event in recent decades
• What are the main measures in the Autumn budget 2024?

  • Increase in public spending
  • Tax changes raising an additional £36.2bn
  • Higher government borrowing
  • Significant changes to National Insurance, Capital Gains Tax, Inheritance Tax, and VAT
• How much additional revenue is expected from tax changes announced in the budget?

  £36.2bn
• What is the forecast for the tax take as a share of GDP by 2029/30?

  38.2% of GDP
• What will happen to the rate of employers’ National Insurance contributions from April 2025?

  It will rise by 1.2 percentage points to 15%
• What will happen to the lower rate of capital gains tax for disposals made on or after 30 October 2024?

  It will rise from 10% to 18%
• What is the new rate for inheritance tax relief for business and agricultural assets from April 2026?

  It will be capped at £1mn with a new reduced rate of 20%
• What will happen to the extra rate of stamp duty charged on additional homes from 31 October 2024?

  It will rise from 3% to 5%
• What will change regarding VAT from 1 January 2025?

  VAT will be charged on private school fees
• What is the planned increase in public spending from 2025/26?

  An average of £69.5bn, or 2.2% of GDP
• What proportion of the planned increase in public spending will go on current spending?

  Two-thirds
• What is the fiscal mandate announced by the chancellor?

  The current budget must be in surplus by 2029/30
• What is the supplementary target for public sector debt?

  It requires public sector debt as a share of GDP to fall between 2028/29 and 2029/30
• What does net financial debt capture in the public sector?

  It captures all financial assets and liabilities on the public sector balance sheet
• What are the key components of the fiscal rules announced in the budget?

  • Fiscal mandate for current budget to be in surplus by 2029/30
  • Supplementary target for public sector debt to fall
  • Revised welfare cap
• What are the implications of the budget on public services?

  Better funded public services due to increased spending
• What can be found in the cookie policy mentioned in the study material?

  Details of essential and additional cookies used on the site
• How might the changes in tax rates affect individuals and businesses?

  They could lead to higher tax burdens for individuals and businesses