The Chancellor of the Exchequer, Jeremy Hunt, is set to announce his budget for 2024 on Wednesday, March 6th. The annual budget statement outlines the government’s plans for public spending, as well as any potential changes to tax policy. The Office for Budget Responsibility, an independent body that monitors spending, will also release its assessment of the plans. Opposition leader Keir Starmer is slated to respond to the budget in parliament.
Hunt’s speech typically starts at 12:30 PM UK time and lasts around an hour. The budget will be broadcast live on the BBC News website and iPlayer. Many expect this budget to be the last one before the next general election, which must be held by the end of January 2025.
The government may reportedly cut National Insurance rates rather than reducing income tax rates. The main rate of income tax could be decreased by 1p, which would cost £7bn, or the government could spend a similar amount by reversing the current tax freeze. The chancellor may increase the income threshold for child benefits and extend a 5p-a-litre fuel duty cut due to end in March 2024.
Many are speculating that the budget may also introduce mortgage schemes for first-time homebuyers where they could pay a deposit of only 1%. However, some are critical of this scheme’s feasibility, as a falling housing market could lead to borrowers being in debt larger than their property’s value. Additionally, there may be new controls in England to prevent local people from being priced out of the local housing market.
While the UK economy has recently come out of recession, many households continue to struggle financially due to the rising cost of living. It should be noted that parts of the budget only affect certain parts of the UK. Scotland, Wales, and Northern Ireland make their decisions about some spending, and if the UK government announces extra spending that only affects England, the other nations will receive an equivalent increase in funds
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