Last Wednesday 6 March 2024, the Chancellor, Jeremy Hunt, presented the budget to the Commons.

Summary

The headlining NI reduction doesn’t give back enough money to cover the increased energy costs of the last 2 years, nor the rampant increase in food price inflation.

Removing non-Dom status means they will be asked to pay UK tax on overseas earnings. This will cause an exodus in these investors, reducing revenue for the Treasury. At least theoretically it prevents Labour from claiming it will have done the same to fund all their spending pledges. So now where will Labour’s extra revenue come from now?

Though the Chancellor stated the UK now had the lowest Personal Tax and NI rate since 1979 it is more than offset by the highest Indirect Taxation in 70 years. He claimed it was a budget for growth but the increase in VAT threshold won’t do that and nothing else in the budget will. The ongoing cost of decarbonisation, with windfall taxes on Oil & Gas production, and building an unreliable parallel renewable infrastructure is costing a fortune, destroying jobs, and beggaring these nations.

Detail

The headlining tax reduction is a reduction from 10% to 8% on Employed NI contributions. The threshold for paying this is £9,569, so a person on a basic wage of £26.500 a year will save £237 a year. That doesn’t cover the doubling of electricity bill over the past two years, nor even the climate levy of over 20% added to every bill.

Higher Property Capital Gains tax reduction doesn’t affect most people.

Removing non-Dom Status, meaning they have to pay UK tax on overseas earnings means a massive exodus of people who previously invested in the UK.

Multiple Dwelling Purchase Relief being scrapped won’t affect the vast majority of people.

Air Passenger Duty on Business and 1^st Class air travel to increase, doesn’t affect the majority of people.

Extending the windfall tax on Oil and Gas Production till 2029 will ensure energy bills won’t be coming down again anytime soon. We will continue to pay a punitive price for energy.

Child Benefit will not now be withdrawn until earnings exceed £60,000. Doesn’t affect the majority of young parents.

Duty on vaping to start in October 2026 and tax on tobacco to increase at the same time. They have to get the tax from somewhere as use of tobacco declines. Doesn’t affect the majority of the people.

Fuel and Alcohol Duty frozen at its present high level. Thanks for nothing.

VAT threshold for registration raised from £85,000 to £90,000 will have an insignificant effect.

Antony Nailer

UK Independence Party Treasury Spokesman