A round up of the Spring Budget 2024 Predictions.

Given that this is a pre-election Budget, speculation is rife about the measures Mr Hunt may announce. The man himself, is playing down the possibility of tax cuts recently telling the BBC:

“I need to set people’s expectations about the scale of what I’m doing because people need to know that, when a Conservative government cuts taxes, we will do so in a responsible and sensible way.”

At the weekend, Mr Hunt reinforced this message, telling the BBC:

” This will be a prudent and responsible budget for long term growth – tackling inflation, more investment, more jobs – and that path to lower taxation as and when we can afford it.”

Here’s a round up of media speculation:

  • Cutting the basic rate of Income Tax by as much as 2p, reducing basic rate to 18%
  • Cutting the rate of Inheritance Tax from 40% to 20% for estates worth in excess of £325,000 or abolishing it altogether
  • A thawing of the freeze on income tax thresholds – currently frozen until April 2028
  • Scrapping or reform of IR35 (off-payroll rules)
  • Increasing VAT registration threshold from £85,000 which has been in place since April 2017
  • A delay to the introduction of the single Research and Development (R&D) tax relief regime – due to be implemented in April 2024
  • An increase in the main £20,000 annual ISA saving limit
  • Pension reform to benefit savers with multiple small pension pots
  • Freezing fuel duty
  • Ending non-dom status
  • Expanding the range of investments eligible fo full-expensing
  • Reform of the apprenticeship levy

The cost of such measures is significant and the Government has hinted at a “5 year tax cutting plan” which spreads the costs of any Budget announcements over several years. This is, of course, conjecture at this point. All will become clear on Budget Day, 6 March 2024.