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The UK’s Autumn Budget 2024, presented in October, has introduced substantial tax increases that mark the highest tax level in modern British history.
These tax hikes include a significant rise in employer National Insurance contributions (NIC) and adjustments to stamp duty, both aimed at bolstering public revenue amidst economic challenges.
Employer NIC rates will rise by 1.2 percentage points, moving the rate to 15% starting April 2025, and the earnings threshold for NICs will be lowered.
This shift will largely impact employees, as employers may pass on these higher costs, likely affecting wages and employment structures across sectors, especially for lower-paid roles.
Another notable change involves stamp duty on additional properties, set to increase from 3% to 5% by October 2024.
This adjustment is expected to impact renters indirectly, as the higher costs for landlords could reduce the availability of rental properties.
Additionally, spending plans include immediate boosts in funding for public services, particularly education and healthcare, to address backlogs and service pressures.
However, spending growth is set to slow dramatically after 2026, which could mean tight budgets for services in the years following this initial surge.
With these measures, the government aims to bring stability to public finances and stimulate economic growth in the longer term.
However, experts like the Institute for Fiscal Studies (IFS) note the potential for these tax and spending policies to create economic pressures, including reduced real income growth, and add to the fiscal burden of future debt repayments.
Attached is a news article regarding the tax increase in autumn budget
Article written and configured by Christopher Stanley
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