Breaking down the Budget: What was announced and what it means to you.

The UK Chancellor, Rachel Reeves, unveiled the 2024 Autumn Budget, which reflects a focus on economic and social reform, alongside sustainable growth. While the measures introduce some challenges for businesses with increased taxes and employer costs, they also expand support for smaller businesses and provide substantial investment in environmental and agricultural resilience.

The Association has reviewed the announcements made and has broken down some of the most applicable points to our members:

Tax and Business Measures

In a bid to increase government revenue, the budget introduces several tax adjustments expected to raise an additional £40 billion. Key changes include:

• National Insurance Contributions (NIC): Employer NIC rates will rise from 13.8% to 15% in April 2025. Additionally, the threshold for employer NIC will drop from £9,100 to £5,000.
• Capital Gains Tax: Rates on capital gains will increase from 10% to 18% (lower rate) and from 20% to 24% (higher rate).
• Business Rates: The 75% discount is being reduced to 40%, capped at £110,000.
• Employment Allowance: Increasing from £5,000 to £10,500, with the £100,000 cap removed, providing an NIC exemption for around 865,000 small businesses.
• Abolition of the Non-Dom Tax Regime: High-net-worth UK residents will now be taxed on their foreign income.

Cost of Living and Income Adjustments

Several updates address wage growth and inflation, impacting workers, households, and businesses alike:

• Minimum Wage Increase: The National Living Wage will increase by 6.7% to £12.21 per hour, while younger workers aged 18-20 will see a significant 16.3% rise to £10 per hour.
• Threshold Freeze on Income Tax and NIC: Income tax and NIC thresholds will remain frozen, unchanged from previous policy.

Environment and Research Investments

The budget strongly emphasises environmental stewardship and resilience, with substantial funding allocated toward climate and biodiversity:

• Climate and Biodiversity Initiatives: £400 million is set aside for tree planting and peatland restoration, which will help boost biodiversity, improve soil health, and mitigate climate impacts.
• Flood Resilience: An additional £2.4 billion is committed to protect high-risk areas from flooding.
• Biosecurity and Climate Research: £208 million will go to biosecurity at Weybridge, supporting disease prevention and food security, with at least £58 million dedicated to climate resilience research over the next two years.
• Zero-Waste Economy: A Collection and Packaging Reforms Programme will drive the UK toward waste reduction and packaging reforms, aligning with zero-waste goals.

Public Services and Infrastructure Enhancements

The budget prioritises investments in education, healthcare, and infrastructure:

• Education Funding: The Department for Education will see a £6.7 billion boost, including £1.4 billion to rebuild 500+ schools and £2.3 billion for core school funding. Breakfast club investments are also set to triple.
• Affordable Housing: A £5 billion package aims to address housing accessibility, with £3.1 billion directed to the Affordable Homes Programme.
• Road Maintenance: An extra £500 million is allocated for pothole repairs, addressing road safety and local infrastructure concerns.

Regional Support

The budget includes funding tailored to devolved governments:

• Scotland: Receives an additional £3.4 billion.
• Wales: Gains an extra £1.7 billion.
• Northern Ireland: Receives £1.5 billion to support growth and regional challenges.

Other Notable Updates

• Fuel Duty Freeze: Fuel duty remains frozen.

Conclusion

The Autumn Budget brings several adjustments relevant to our members' operations, including changes to National Insurance rates, Capital Gains Tax, and business rate discounts. While these measures may affect operational costs, new allocations for climate resilience, biodiversity initiatives, and small business support could align with areas of growth for the industry. The Association will continue to monitor these updates, offering guidance to members on how these changes may shape the professional landscaping sector in the coming year.