[30.10.24]

• The Office for Budget Responsibility (OBR) forecast that CPI inflation will average 2.5% this year, 2.6% in 2025, then 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2.0% in 2029
• The OBR has also published a detailed assessment of Labour’s policies for the next decade – stating real GDP growth will be 1.1% in 2024, 2.0% in 2025, 1.8% in 2026, 1.5% in 2027, 1.5% in 2028 and 1.6% in 2029
• National Minimum Wage will rise by 6.7% from £11.44 an hour to £12.21 from April 2025. In addition the NMW will rise for 18-20 year olds from £8.60 to £10 an hour; and Apprentices will receive an increase from £6.40 to £7.55 an hour
• Fuel duty is frozen next year and will maintain the existing 5p cut for another year too
• Employee National Insurance, income tax and VAT will not increase
• There will be no extension of the freeze in income tax and National Insurance thresholds beyond the decisions of the previous Government.  From 2028-29 personal tax thresholds will be uprated in line with inflation
• Employer’s National Insurance will increase from 13.8% to 15% from April 2025.  In addition, the threshold at which businesses start paying Employer’s NIC will be lowered from £9,100 to £5,000
• To support small businesses, the Employment Allowance will increase from £5,000 to £10,500
• The current 75% discount to business rates for retail, hospitality and leisure businesses, due to expire in April 2025, will be replaced by a discount of 40%, up to a maximum discount of £110K
• The Government will publish a Corporation Tax roadmap, which will include a 25% cap on Corporation Tax for the duration of this Parliament
• The lower rate of Capital Gains Tax will rise from 10% to 18% and the higher rate from 20% to 24%.  The rates on residential property will remain at 18% and 24%
• The Inheritance Tax threshold will be frozen for a further two years to 2030; whilst inherited pensions will now be subject to IHT
• Incentives for Electric Vehicles in terms of company car tax will be maintained from 2028.  The differential between fully electric and other vehicles in the first rates of Vehicle Excise Duty beginning in April 2025
• Alcohol duty rates on non-draught products will increase in line with RPI from February 2025, whilst the duty on draught alcohol will be cut by 1.7%
• The non-dom tax regime will be abolished from April 2025
• Stamp Duty Land Tax on second homes will increase from tomorrow from 2% to 5%

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