In the weeks leading up to this week’s ‘Budget to rebuild Britain’ we heard much speculation about what the ‘difficult decisions’ might be. Chancellor of the Exchequer Rachel Reeves set out her fiscal rules targeting growth whilst reducing debt and budget deficits.
We saw spending to encourage more people in to work, ensure that taxes due are being paid, strengthen our public services, and support those most affected by the cost-of-living crisis. Inevitably this means that taxes have had to rise. Several key allowances (ISA allowances, pension allowances, Capital Gains Tax exemptions, and Inheritance Tax thresholds) will also be frozen until April 2030.
Looking through our Certified B-Corporation lens
When we make important decisions within our business, we apply our ‘Three P lens’ of People, Planet, and Profit. Here are our initial observations of the Autumn Budget.
| People | Planet | Profit |
| Taking measures to shield those most affected by the cost-of-living crisis. The National Minimum Wage will increase, and the State Pension will rise by 4.1% in April 2025 due to the Triple Lock. Complementing NHS spending by using taxes to encourage healthy living. Planning to address the growing numbers of individuals brought into higher rates of tax due to inflation. Income Tax and National Insurance thresholds will increase with inflation from April 2028. Seeking to support first time and main home buyers. Stamp Duty Land Tax rates on purchases of second properties has now been increased. Increasing Inheritance Tax on wealthy estates. Combined £1 million limit imposed on reliefs associated with Agricultural and Business Assets. Relief halved over this level and for all AIM holdings. Pension death benefits subject to Inheritance Tax from April 2027. | Encouraging more pure Electric Vehicle (EV) ownership. Fuel duty and company car tax changes to make petrol/diesel vehicles less attractive. Investment in on-street EV charging infrastructure will make owning an EV more viable. Discouraging air travel – particularly private jets – with increases to Air Passenger Duty. Continuing support for the energy transition through an increased and extended Energy Profits Levy. Further funding for innovations such as carbon capture and various sources of renewable energy. | Supporting the declining high street. Business rates to be reformed to benefit the high street (e.g. retail, leisure, hospitality) over larger properties (e.g. distribution centres). Providing longer term certainty to businesses. A Corporate Tax Roadmap has been published. Funding spending whilst meeting the new fiscal rules. Employer National Insurance contributions to increase significantly in April 2025 (rate to 15% and will apply from earnings of £5,000). Rates of Capital Gains Tax have increased (to 18% and 24%) with immediate effect. Business Asset Disposal Relief (often used when selling a business) tax rates to increase over the next two years. |
Read our Autumn 2024 Budget Summary
The below document highlights the facts and figures, and provides a reminder of the key rates and allowances.
Download our Autumn 2024 Budget Summary
Do you have any questions about how the budget announcement could impact you? Reach out to us today for expert guidance and advice.
