Pre-Election Budget

Accountants Chester – Spring Budget 2024

The Chancellor’s Spring Budget 2024 was light on surprises, focusing on extending previous measures and making minor adjustments. Here is a breakdown of the key points:

Business-Friendly Measures

• Full Expensing Extension: Businesses welcome the permanent extension of full expensing for leased assets.
• Recovery Loan Scheme Extension: This scheme eases access to finance for businesses.
• VAT Threshold Increase: Smaller businesses benefit from the VAT registration threshold rising to £90,000.

Tax Changes

• NI Cuts: The 2% reduction in National Insurance for both employees and self-employed individuals eases some tax burden.
• Non-Domiciled Tax Status Abolished: This move aims to simplify the tax system and attract investment.
• Capital Gains Tax Cut: The reduced rate on property capital gains from 28% to 24% could stimulate investment.

Investment & Spending

• Regional Projects: The Budget allocates funds for various small, regional projects.
• Technology Boost: The Chancellor wants the UK to be a tech leader, pledging more pension fund investment and an additional ISA allowance.
• Public Sector Productivity: The focus is on streamlining public services, with significant funding for NHS reform.

Other Notable Points

• OBR’s Positive Outlook: The Office for Budget Responsibility forecasts slightly higher growth than expected.
• Fiscal Limitations: The Budget offers little room for further spending, meaning potential tax rises loom after the next election.
• Tax Advice Regulation: The government is exploring tighter rules for the tax advice market.

Overall Assessment

This Budget offers few major changes, with a focus on stability. However, underlying challenges like the weak economy and pressures on public finances remain. Businesses should be prepared for potential tax increases after the next election.