Chancellor Jeremy Hunt delivered a highly anticipated Spring Budget today, faced with pressure to cut taxes and bolster faltering public services.
The Chancellor confirmed expectations of a 2p employee national insurance cut and an extension of the fuel duty freeze, while he also announced plans to take on the ‘unfairness’ of the so-called child benefit tax trap.
Hunt boasted a ‘budget for growth’, revealing a new ‘public service productivity plan’, additional leveling up funding for various areas of the country and a shake-up of the ISA regime to encourage investment in UK assets.
He also introduced duty on vaping products from 2026, and abolished the holiday letting tax regime and multiple dwellings relief.
Fuel duty, stamp duty and child tax credits could all see changes
OBR forecasts
Real household disposable income on track to rise by 0.8 per cent this year.
Borrowing falls from 4.2 per cent of GDP this year, to 3.1, 2.7, 2.3, 1.6 and 1.2 per cent in the following five years.
GDP to grow by 0.8 per cent this year and 0.9 per cent next year, 0.5 per cent higher than in the Autumn forecast
Budget as it happened
Personal tax
no inheritance tax changes
Alcohol duty freeze February 2025 ‘backing the Great British Pub’
Fuel duty freeze extension for 12 months
Duty on vaping products from 2026
Holiday letting tax regime abolished
Multiple dwellings relief abolished
Property Capital Gains Tax: Higher rate on residential property cut from 28 to 24 per cent
‘Non dom’ tax system abolished, replaced with ‘modern, fairer and simpler’ residency based system. After tax-free four years, if still living in the UK, tax will be paid a the same rate as British citizens – raising £2.7bn by the end of forecast period
Property
Pensions
ISAs, dividend tax and capital gains tax
Some detail on a shake-up for the pensions regulator and FCA, with new requirement to disclose pension fund exposure to UK assets and provide better value for pensioners.
New British Saving bond, with a fixed rate for three years
British ISA confirmed, with an additional £5k tax free for investment in UK assets
Child benefit
Business
Investment – full expensing to apply to leased assets ‘when it’s affordable’
£200m to extend recovery loan scheme, helping 11,000 SMEs access finance
VAT registration threshold increased from £85,000 to £90,000 from 1 April
Sunset on energy profits levy extended to 2029
Devolution plans to allow more spending power for local leaders
Additional £100million leveling up funding for some areas to power growth
Remaining NatWest shares to be sold this summer
Fresh investment for creative industries, with £26million earmarked for National Theatre
Measures to support the childcare sector, upping rates paid to providers for children over 9 months old
Up to £120million more for the Green Industries Growth Accelerator, £270million more for advanced manufacturing industries
Public service productivity plan revealed – £4.3billion NHS Workforce Plan
Doubled NHS spending on digital transformation over three years (£3.4billion)
