In a highly anticipated move, Chancellor Jeremy Hunt is set to reveal the 2024 Spring Budget on March 6, according to an official announcement from the Treasury. This forthcoming budget will encompass the government’s comprehensive tax and spending plans, offering fresh insights into the nation’s economic outlook. With the potential to mark the final opportunity for the government to implement significant changes to tax policy before the general election, all eyes are on the possible unveiling of tax cuts.
Reports circulating within political circles suggest that the Conservative party is actively considering additional tax reductions as a means to address a notable deficit in the polls. Chancellor Hunt previously employed his major fiscal speech, the Autumn Statement, to extend tax breaks for businesses and implement cuts to National Insurance. However, despite these measures, taxes in the UK have maintained their highest levels on record, primarily due to a sustained freeze on tax thresholds.
The imminent Spring Budget may witness bold pledges on housing and taxes, as Prime Minister Rishi Sunak endeavours to narrow the gap with the Labour Party ahead of the impending general election, widely anticipated to occur next year. Housing Secretary Michael Gove has hinted at potential policies designed to alleviate costs for first-time buyers, including the reduction of deposit sizes or the reintroduction of the Help to Buy Scheme.
Recent reports have also suggested that Prime Minister Sunak is contemplating significant tax cuts, including the potential abolition of inheritance tax. While this move could benefit the wealthy and create a distinct contrast with the Labour Party’s stance, the government has thus far refrained from providing official commentary on these speculations.
It’s worth noting that the general election must be held before the end of January 2025, with Prime Minister Sunak retaining discretion over the timing of the poll. The Office for Budget Responsibility is formally commissioned to release economic forecasts on March 6, providing a comprehensive outlook for the upcoming fiscal period. This crucial data will undoubtedly play a significant role in shaping the government’s budgetary decisions and the broader political landscape in the lead-up to the general election.
