The Autumn Budget 2024 brings several economic shifts, notable for lifting the income tax threshold freeze in 2028/29.
- The UK’s first Labour Budget in 14 years aims to restore economic stability while avoiding further burdens on workers.
- Chancellor Rachel Reeves announced a rise in the National Living Wage, marking a significant increase for over-21s to £12.21 per hour.
- The National Minimum Wage will also see an increase, with changes impacting those aged 18 to 20 and apprentices.
- The budget reflects significant steps towards economic reform, with further tax changes on the horizon.
In a pivotal move under the Autumn Budget 2024, income tax thresholds will be adjusted for inflation starting in the 2028/2029 financial year. This change marks the end of the threshold freeze imposed since 2022, which has been a point of contention for many taxpayers. Chancellor Rachel Reeves has stated that extending this freeze would further strain working individuals, highlighting the need to restore economic balance.
This budget is particularly noteworthy as it is the first Labour Budget in 14 years. Reeves, making history as the UK’s first female chancellor, aims to establish economic stability. In line with this, she has confirmed an increase in the National Living Wage. For those over 21, the wage will rise to £12.21 an hour; a 6.7% hike. This measure is expected to provide relief to many workers, addressing cost of living concerns.
Additionally, the National Minimum Wage is set to rise significantly for those aged 18 to 20, moving from £8.60 to £10. Apprentices are to receive the most substantial increase, bringing their hourly pay up from £6.40 to an undisclosed amount. These adjustments demonstrate a focus on enhancing living standards for younger and less experienced workers.
Rachel Reeves’ budget is forward-looking, indicating further economic reforms. Amongst these are incoming tax changes and the abolition of the non-dom status from April 2025. Reeves has criticized the non-dom regime as outdated, signalling a shift towards more equitable tax policies. This aligns with the broader Labour agenda to target economic disparities.
The Autumn Budget 2024 introduces a series of changes that reflect a strategic approach to economic policy, aiming to relieve the financial pressures on various segments of the population. Through aligning wages with inflation and revising outdated tax practices, the budget sets a progressive path forward.
Overall, the 2024 Autumn Budget marks a significant shift in UK economic policy, prioritising fairness and financial stability.
