The new Chancellor of the Exchequer, Rachel Reeves, delivered her widely anticipated House of Commons statement on 29 July 2024. The Chancellor asserted that the new government has inherited a £22bn hole in the public finances. The Chancellor said that she will take the “difficult decisions” necessary to find £5.5 billion of savings this year and £8.1 billion next year.
The main measures announced by the Chancellor included the following:
A date for the next Budget was also confirmed. The Chancellor announced that this will take place on Wednesday 30 October 2024. The Chancellor restated Labour’s manifesto commitment not to increase the basic, higher or additional rate of income tax, National Insurance or VAT.
However, we can expect additional tax and spending cuts in the upcoming Budget. The Chancellor still has scope to increase other taxes including Capital Gains Tax, Inheritance Tax, Stamp Duty and Fuel Duties at the upcoming Budget.