Jeremy Hunt's Spring Budget statement has ended - and he announced a slew of "desperate" tax cuts after 14 years of "Tory economic failure".
Mr Hunt today delivered what could be his last financial update ahead of the General Election in front of howling Tory MPs. The Chancellor extended the freeze on fuel duty for the 14th year in a row, while alcohol duty will remain frozen until February 2025. Meanwhile, millions will take home more pay after another National Insurance cut, with Class 1 contributions being reduced to 8% from this April.
However, despite the news of cuts - which covered up a raft of gloomy taxes such as a hike on vaping - the Chancellor's Budget could make or break struggling families. Shadow Chancellor of the Exchequer, Rachel Reeves MP, said the statement "should be the final chapter of fourteen years of Tory economic failure".
And giving his damning reaction to the Chancellor's budget, Labour leader Sir Keir Starmer branded the budget âthe last desperate act of a party that has failedâ. He said the Conservatives "give with one hand and take even more with the other, and nothing they do between now and the election will change that".
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New measures will be introduced to support those struggling with debt, Chancellor Jeremy Hunt announced today in his Budget.
Delivering his spring Budget 2024, the Chancellor alluded to the cost-of-living crisis and stressed a cut in National Insurance will help struggling families retain more money they earn. The 57-year-old politician also said he would increase repayment programmes for those taking advanced loans from 12 months to 24 months.
And Mr Hunt, who became Chancellor in October 2022, insisted around 40,000 families will also benefit from his decision to abolish the £90 debt relief charge. Mr Hunt made the pledge to scrap this as he listed several amendments to our spending.
The politician said: "For some people, the best way to resolve debts is through a debt relief order. But getting one costs £90 which can deter the very people who need them the most."
Read more: 40,000 struggling families to benefit from new measures to help those in debt
Reacting to today's Budget, Dr Sarah Hughes, CEO of Mind, said: “We are relieved to hear that the Household Support Fund – which supports people in poverty and bearing the brunt of the cost-of-living crisis, groups who we know are particularly affected by mental health problems – will be extended by 6 months.
The UK government will need to extend it again at the next budget to make sure people aren’t left behind. However, we are concerned that no new funding has been committed to support the safe roll out of Right Care Right Person.
8 money changes coming in February including Universal Credit and passport fees
"It is simply impossible to take a million hours of support out of the system without replacing it with investment. Failing to properly fund NHS mental health crisis services while instructing police forces to step back from mental health calls is an unsafe and frankly irresponsible decision.
“Delivering this change safely requires careful planning, partnership working, additional funding and effective oversight. No one should have to risk losing their life because a process is changed too quickly and without investment. Given the lack of funding for mental health services announced in today's budget, it is even more critical that the UK government slows down the roll-out of Right Care Right Person and puts the needs of people with mental health problems and the public first."
The SNP has slammed the Chancellor’s reliance on productivity to “solve everything” - and his proposals to fill job vacancies with immigration.
Speaking from the frontbench, Drew Hendry said: “The Chancellor has put a lot of store on productivity in his speech today, he’s going to solve everything with productivity.
“Yet if we look back over the past 14 years, and indeed before that, one of the things that the UK has been exceptionally poor at is productivity. It hasn’t budged at all.”
Mr Hendry (Inverness, Nairn, Badenoch and Strathspey) also criticised the Government’s proposal to fill job vacancies, he said: “(Jeremy Hunt) said earlier that vacancies would be easy to fill with immigration.
“This is the party who imposed Brexit, joined by the Labour Party, and now the Lib Dems, and stopped free movement.
“Of course it would be easy to fill vacancies with people, skilled people who want to do the jobs that we have, who want to fill those vital jobs in tourism, hospitality, the National Health Service, the care service, and across many other sectors, but of course that’s been taken away by this place.”
Responding to today’s Budget, CEO of River Action James Wallace said, “In a speech lasting more than an hour the Chancellor did not mention nature, the environment, nor action to tackle the climate crisis; not even once.
“Our rivers are dying, we are in freshwater emergency and we need our politicians, of all stripes, to put this near the top of their political and economic thinking. Instead, this government has stripped resources from the environment regulators leaving them hollowed out and unable to prosecute the polluting water companies and greedy industrial-scale agricultural business. We desperately need a government that will stand up for nature, our rivers and fight the climate crisis.”
River Action is a campaigning body committed to addressing the severe problem of river pollution across the UK.
Tim Alderslade, chief executive of Airlines UK, the industry body representing UK-registered carriers, said: "The decision to increase APD goes against the Prime Minister's commitment not to discourage flying through taxation.
"Hitting passengers - including families and those travelling for leisure - with stealthy tax rises will only make the UK even less competitive on the global stage. The UK's aviation taxes and airport charges are already among the highest in the world. The Government should instead focus on supporting the industry's transition to net zero which the US and EU has made billions of pounds of support available for, unlike here in Britain."
Clive Wratten, chief executive of the Business Travel Association industry body, said: "The introduction of an increase in non-economy air passenger duty is disastrous for the economic welfare and wellbeing of British businesses and their employees.
"Contrary to common misconceptions, business travel is not just for the wealthy. This tax will hinder growth for small and medium enterprises through limiting international collaboration opportunities.
"It will hit charities, academics and researchers alongside businesses of all sizes combating rising costs in every area. There is no mechanism for ensuring that the monies from this tax will go into innovation in the airline sector nor into sustainable aviation fuels. This is therefore just another tax on British businesses."
The Government's new aviation tax hike has not gone down well (AFP via Getty Images)Airline passengers will be hit by a tax increase, with a sharper rise for those in premium cabins.
The Treasury announced it will increase the level of air passenger duty (APD) for flights from UK airports by the forecast Retail Prices Index measure of inflation.
But the rates for premium economy, business class and first class ticket holders will be "further adjusted for recent high inflation to help maintain their real terms value", it said.
Unlike leisure travel, flights for business have failed to return to pre-coronavirus levels.
The Treasury's announcement relates to the 2025/26 financial year and is expected to generate £110 million in revenue in the first 12 months.
APD rates for passengers in premium cabins on departures from UK airports currently range from £13 to £200 based on the distance of the flight.
The range will rise to between £14 and £202 in the 2024/25 financial year.
The Prime Minister is overseeing a “Rishi recession”, Sir Keir Starmer claimed, as he hit out at the Government’s record on the economy.
The Labour leader said it remains true that taxes are at “a 70-year high” despite the Chancellor’s budget, adding: “The British people paying more for less, an unprecedented hit to living standards of working people, the first time they have gone backwards over a Parliament, and they were cheering that today.”
“The reason is equally simple, there is no plan for growth. How can there be? He can say ‘long-term plan’ all he likes,” Sir Keir added to jeers from the Prime Minister and Chancellor.
He insisted it was a “statistical sleight of hand” by ministers to claim Britain has grown more quickly than countries like Germany over the last 14 years, telling MPs: “Indeed, in per capita terms, our economy has not grown since the first quarter of 2022, the longest period of stagnation Britain has seen since 1955.”
Sir Keir said: “There is nothing technical about working people living in recession for every second the Prime Minister has been in power. This is a Rishi recession.”
Sir Keir Starmer hit out at the Governmentâs record on the economy (Sky)Jeremy Hunt has announced a cut to National Insurance tax in a desperate attempt to turn around his party's abysmal poll rating.
The pre-election tax giveaway came as the Tory Chancellor unveiled the Budget on Wednesday with reforms to child benefit, a new vaping charge, and abolishing the non-dom tax status in a major U-turn.
Ignoring warnings from the International Monetary Fund (IMF) against tax cuts, Mr Hunt put the National Insurance cut at the centrepiece of the Budget - and even suggested another reduction may come.
Here The Mirror looks at some of the key announcements - and what it means for you.
Sir Starmer has said the public will be subject to a “Tory stealth tax” through council tax increases.
The Labour leader told the Commons: “People have been living through this nonsense for 14 years. They know the thresholds are still frozen, dragging more and more people into higher taxes.
“They know that a Tory stealth tax is coming their way in the shape of their next council tax bill. The Levelling-up Secretary has told not just this House but every house in the country he’s coming for their council tax, give with one hand, Gove in the other.
“But most insultingly of all, the British people know the only cause that gets this lot out of bed is trying to save their own skin.
“Take the desperate move, after years of resistance, to finally accept Labour’s argument on the non-dom tax regime. Has there ever been a more obvious example of a Government that is totally bereft of ideas?
“And if they’re sincere in support of this policy now, then the question they must answer today is why did they not do it earlier? Why did they not stand up to their friends, their funders, and their family?
“Because if they had followed Labour’s example 3.8 million extra operations would have taken place by now, 1.3 million emergency dental appointments, free breakfast clubs for nearly four-and-a-half million children. But if instead this is just another short-term, cynical political gimmick then honestly what is the point of them?”
Martin Lewis expressed "disappointment" no changes were announced in the Spring Budget to Lifetime ISAs penalties for first-time buyers.
The money guru, 51, had been campaigning for the amendment, which affects anyone who wants to purchase a home for more than £450,000. Jeremy Hunt, Chancellor of the Exchequer, made no reference to this in the House of Commons.
Read more: Martin Lewis 'disappointment' over change not mentioned
His change to Child Benefit, though, have been welcomed by Mr Lewis (Ken McKay/ITV/REX/Shutterstock)Sir Keir Starmer said: "(The Conservatives) lost control of the economy, they sent interest rates through the roof, they made working people pay.
"They should be under no illusion. That record is how the British people will judge today's cuts, because the whole country can see exactly what is happening here.
"They recognise a Tory con when they see it, just as they did in November. Give with one hand, take even more with the other."
Tory MPs should expect to soon defend the Government on plans to remove private school tax relief following the Chancellor’s decision to axe the non-dom status, Sir Starmer has said.
Welcoming the move, which is a Labour policy, the Labour leader said: “For those opposite now a little downbeat about another intellectual triumph for social democracy, I say get used to it, because with this pair in charge it won’t be long before they ask you to defend the removal of private school tax relief as well.
“The harder they try with cynical games like this, the worse it will get for them, because the whole country can see exactly who they are.
“Fighting for themselves, politics not governing, party first, country second.”
Sir Keir Starmer has referred to Prime Minister Rishi Sunak and Chancellor Jeremy Hunt as the “Chuckle Brothers of decline”.
Mr Starmer told MPs: “The Chancellor, who breezes into this chamber in a recession and tells the working people of this country that everything’s on track. Crisis? What crisis? Or as the captain of the Titanic and the former Prime Minister herself might have said, iceberg? What iceberg?
“Smiling as the ship goes down, the chuckle brothers of decline, dreaming of Santa Monica or maybe just a quiet life in Surrey not having to self-fund his election.”
Keir Starmer reacts to Jeremy Hunt's latest budget planSir Keir Starmer has accused the Conservative Government of “delusion” following the budget announcement.
The Labour leader told the Commons: “I mean over 14 years we have seen our fair share of delusion from the party opposite. A Prime Minister who thinks the cost of living crisis is starting to ease.
“An Education Secretary (Gillian Keegan) who thinks concrete crumbling on our children deserves her gratitude. A former prime minister (Liz Truss) who still believes crashing the pound was the right path for Britain.”
The Labour leader says the Tories are giving with one hand "and taking with the other".
He slams the Prime Minister for thinkiing the Cost of Living crisis is "starting to ease" and blasted the Chancellor for telling the British public "that everything is ok".
Mr Hunt shouted "I commend this statement to the house" as he brought his make or break budget to a close.
The Chancellor was on his feet for just over one hour, and rounded off to a droning hum from Tory MPs.
The SNP have forced a vote on the Budget, so this will add a delay to hearing a response from Labour. We'll bring you all the latest from Sir Keir's reaction to the budget as it comes in
During his budget speech, Mr Hunt said child benefit will be withdrawn when one parent earns more than £50,000 a year, saying: “That means two parents earning £49,000 a year receive the benefit in full but a household earning a lot less than that does not if just one parent earns over £50,000.
“Today I set out plans to end that unfairness. Doing so requires significant reform to the tax system including allowing HMRC to collect household level information. We will therefore consult on moving the high-income child benefit charge to a household-based system to be introduced by April 2026. But because that is not a quick fix, I make two changes today to make the current system fairer.”
He explained: “I confirm that from this April the high-income child benefit charge threshold will be raised from £50,000 to £60,000. We will raise the top of the taper at which it is withdrawn to £80,000.
“That means no one earning under £60,000 will pay the charge, taking 170,000 families out of paying it altogether. And because of the higher taper and threshold, nearly half a million families with children will save an average of around £1,300 next year.”
Jeremy Hunt ended his Budget speech by saying the Government aims to cut national insurance further “when it can be achieved without increasing borrowing and when it can be delivered without compromising high-quality public services”.
He confirmed a further 2p National Insurance cut, from 10% to 8% from April 6, with self-employed National Insurance being slashed from 8% to 6%.
Mr Hunt also said planned growth in day-to-day public spending will be kept at 1% in real terms but the Government will “spend it better” with a new “productivity plan”.
Millions of workers will take home more of their hard-earned pay after another National Insurance cut was announced by Jeremy Hunt in his Budget today.
National Insurance is a tax on earnings and your contributions help you qualify for certain benefits and the state pension. If you're an employee, you currently pay 10% on earnings between £12,570 and £50,270 in Class 1 National Insurance contributions.
This is being reduced to 8% from this April, the Chancellor confirmed today. The latest National Insurance cut will benefit around 27 million workers, with the average person saving £450 a year.
However, this threshold for when you start paying National Insurance remains frozen until April 2028. This means, despite the cut announced today, more people still risk being dragged into paying tax for the first time when they get a pay rise.
Read more: National Insurance tax cut again in huge Budget pay boost for 27 million workers
A couple assess their finances at home (Getty Images/iStockphoto)Families will be better off after changes to a "grossly unfair" Child Benefit charge were announced today by Jeremy Hunt.
Child Benefit is paid to someone who is responsible for a young person under the age of 16, or under 20 if they're in approved education or training. If you or your partner earn less than £50,000 per year, you can claim the full amount of Child Benefit - but once one of you earns over £50,000, you have to pay some of your Child Benefit back under the so-called "High Income Child Benefit Charge".
Earn over £60,000 and you'll need to pay back 100% of your Child Benefit - meaning you don't get anything. Campaigners including Martin Lewis have called this rule "grossly unfair" as it means a couple can earn £99,999 between them and get full Child Benefit, as long as each of them earn under £50,000. But a single parent earning above £60,000 would not get any Child Benefit.
Read more: Child Benefit change to 'unfair' charge confirmed in major boost for families
Chancellor Jeremy Hunt makes an address in House of Commons (sky)Tory Chancellor Jeremy Hunt has scrapped the non-tax loophole for super-rich UK residents in a major U-turn to fund a National Insurance cut.
Mr Hunt has previously described scrapping the status as the "wrong thing to do" and suggested rich foreigners could leave Britain.
Read more: Jeremy Hunt in major Budget U-turn as Tories abolish non-dom tax for super rich
Vapers will be hit by a new tax with the costs of liquids set to increase, the Government has announced in the Budget.
Chancellor Jeremy Hunt has unveiled plans to impose a new "excise duty" on vaping products from October 2026. It is expected that a 10ml bottle of e-liquid, which currently costs around £4, will increase by more than a £1. A consultation on how the details will work will be published in due course. Vaping liquid is already subject to VAT but the new levy is a separate tax that will be added on top.
Mr Hunt said tobaccos duty will be increased to ensure vaping is still cheaper than smoking cigarettes. "Because vaping can also play a positive role in helping people to quit smoking, we'll increase a non-off increase of tobacco duty at the same time to maintain a financial incentive to choose vaping over smoking," he said.
Read more: Vaping tax slapped on e-liquids in Budget as prices to rise
Police officers waste around eight hours a week on unnecessary admin – with higher productivity, we could free up time equivalent to 20,000 officers over a year.
The Chancellor said: “So we will spend £230 million rolling out time and money saving technology which speeds up police response time by allowing people to report crimes by video call and where appropriate use drones as first responders.”
He added £170 million would be used to fund “non-court resolution, reduce reoffending and digitise the court process”.
Mr Hunt also said £165 million would be invested over the next four years to increase the capacity of the children’s homes estate while £105 million over the next four years would be used to build 15 new special free schools.
Locals in UK destinations priced out by holiday lets have scored a major victory thanks to the scrapping of a landlord tax break.
In his budget today, Chancellor Jeremy Hunt has scrapped a series of tax breaks designed to help holiday let landlords. The £300million furnished-letting scheme currently allows second home owners to deduct the full cost of their mortgage interest payments from their rental income and pay lower capital gains tax when they sell.
The move will save the Exchequer money and is designed to ease the housing crisis in popular destinations such as Cornwall and the Lake District, where local people struggle to find affordable homes. Part of the reason why is because landlords convert homes once lived in by locals into holiday lets to take advantage of the tax benefits.
Read more: Government comes after holiday lets by scrapping £300million tax break
The Chancellor has gloated how tax cuts would offer "much needed help in challenging times" and stimulate economic growth as he set out Budget plans for pre-election giveaways.
The Chancellor, delivering a statement aimed at reviving both an ailing economy and reversing the Conservatives' opinion poll deficit, said he was offering "permanent tax cuts" in a "Budget for long-term growth".
He was set to make a 2p cut in national insurance the centrepiece of a tax-cutting Budget with an eye on this year's general election.
He told MPs: "Because we are delivering the Prime Minister's economic priorities, we can now help families not just with temporary cost-of- living support but with permanent cuts in taxation.
"We do this to give much needed help in challenging times. But also because Conservatives know lower tax means higher growth. And higher growth means more opportunity, more prosperity and more funding for our precious public services."
Jeremy Hunt claimed 'keeping taxes down matters to Tories' (PRU/AFP via Getty Images)October 26 will see a tax introduced on vaping, the Chancellor has announced.
At the same time, tobacco duty will be increased as Mr Hunt says vaping "plays an important part in helping people to give up smoking".
Mr Lewis has reacted to news of drones being used as first responders in emergency situations.
The MoneySavingExpert founder tweeted: "Appropriate use of drones as first responders" in policing. Did I just hear that right #Robocop!
"Will they be armed!"
"Appropriate use of drones as first responders" in policing. Did I just hear that right #Robocop! Will they be armed!#Budget2024 #BudgetXplanations
— Martin Lewis (@MartinSLewis) March 6, 2024
Mr Hunt said the systems that support NHS staff are "often antiquated" before adding on the long-term workforce plan: "I wanted better care for patients, better value for taxpayers and more rewarding work for its staff. Making changes on the scale we need is not cheap. The investment needed to modernise NHS IT systems so they are as good as the best in the world costs £3.4 billion.
"But it helps unlock £35 billion of savings, 10 times that amount. So in today's Budget for long-term growth, I have decided to fund the NHS productivity plan in full."
He added: "We will slash the 13 million hours lost by doctors and nurses every year to outdated IT systems. We will use AI to cut down and potentially cut in half form filling by doctors. We will digitise operating theatre processes allowing the same number of consultants to do an extra 200,000 operations a year.
"We will fund improvements to help doctors read MRI and CT scans more accurately and quickly, speeding up results for 130,000 patients every year and saving thousands of lives, something I know would have delighted my brother Charlie who I recently lost to cancer."
The Chancellor of the Exchequer has given his spring budget today (PRU/AFP via Getty Images)
