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Your Input on the Autumn Budget – Take Part in Our Survey

06 Nov 2024 | BALI News

The Association is keen to hear from our members on the recently announced 2024 Autumn Budget. Your perspectives are crucial for our advocacy efforts as we aim to represent the impacts of recent announcements in discussions with Government policymakers. The Association invites you to share your views through the survey, helping champion the support needed to thrive amid economic and environmental challenges.

The survey can be found here. All responses are anonymous and stored in line with the Association’s GDPR Policy.

Summary of the 2024 Autumn Budget

The UK Chancellor, Rachel Reeves, unveiled the 2024 Autumn Budget with a focus on economic reform, social support, and sustainability. While businesses will face rising employer costs and increased taxes, the budget also introduces key support measures for small businesses and significant investments in environmental and agricultural resilience. Here’s a breakdown of the points most relevant to our members:

Tax and Business Measures

Several tax adjustments are aimed at bolstering government revenue, estimated to raise £40 billion. Key changes include:

  • National Insurance Contributions (NIC): Employer NIC rates will rise from 13.8% to 15% by April 2025, with the employer NIC threshold decreasing from £9,100 to £5,000.
  • Capital Gains Tax: Rates on capital gains will increase, with the lower rate rising from 10% to 18% and the higher rate from 20% to 24%.
  • Business Rates: The discount rate will drop from 75% to 40%, capped at £110,000.
  • Employment Allowance: This allowance will increase from £5,000 to £10,500, offering NIC exemptions to about 865,000 small businesses.
  • Abolition of the Non-Dom Tax Regime: UK residents with foreign income will now be taxed on it.

Cost of Living and Income Adjustments

The budget addresses inflation impacts and wage growth:

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

Environment and Research Investments

The budget placed strong emphasis on environmental stewardship:

  • Climate and Biodiversity Initiatives: £400 million is allocated to tree planting and peatland restoration, benefiting biodiversity, soil health, and climate resilience.
  • Flood Resilience: An additional £2.4 billion will protect high-risk areas from flooding.
  • Biosecurity and Climate Research: £208 million will go to biosecurity, supporting disease prevention and food security, while £58 million will fund climate resilience research over the next two years.
  • Zero-Waste Economy: The Collection and Packaging Reforms Programme will drive waste reduction and packaging reforms, moving toward zero-waste targets.

Public Services and Infrastructure Enhancements

The budget also prioritised public services and infrastructure:

  • Education Funding: A £6.7 billion increase for the Department for Education includes £1.4 billion to rebuild over 500 schools and £2.3 billion for core school funding.
  • Affordable Housing: A £5 billion package, with £3.1 billion allocated to the Affordable Homes Programme, aims to increase housing accessibility.
  • Road Maintenance: An additional £500 million is designated for pothole repairs.

Regional Support

Funding allocations provide tailored support across the UK:

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

Other Notable Updates

  • Fuel Duty Freeze: Fuel duty remains frozen.

Conclusion

The 2024 Autumn Budget introduces changes that impact our industry, from tax increases to funding boosts for climate and biodiversity initiatives. While some of these measures may raise operational costs, they also present opportunities for growth in line with sustainable practices. The Association will continue to monitor these developments closely, offering guidance and support to our members as these changes unfold.

The Association strongly encourages members to participate in the survey. Understanding how the recent budget changes will impact our members is essential for us to effectively represent our collective concerns and advocate for improved support and recognition in discussions with the Government.

Survey access: https://forms.office.com/e/wvJFCsaJce 

 

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