Highlights: spring budget 2024

What is the difference between the SPRING BUDGET and the AUTUMN STATEMENT?

The Spring Budget and Autumn Statement are often used interchangeably, but there is actually a difference between them. 

In simple terms, the Budget is usually an annual plan where the Chancellor of the Exchequer announces how and where the Government is going to get money from to run the country (focusing on taxation) and what it will be spending that money on. 

It is worked out by the Chancellor and his office, the Treasury (the Government department which oversees the country’s finances). 

The Statement provides an update on the government’s plans (Budget), based on actual performance and the latest forecasts from the Office for Budget Responsibility (OBR) on how the UK economy will perform in the future. There is usually less detail in the Statement than in the Budget. 

The Government will:

  • Cut the main rate of Class 1 employee NICs from 8% from 6 April, 2024
  • Cut the main rate of Class 4 self-employed NICs to 6% from 6 April, 2024 
  • Remove Class 2 self-employed NICs from 6 April, 2024 

To support businesses to invest and grow, the Government is making Full Expensing a permanent feature (it was due to end in 2026). This applies to qualifying companies and assets.

The government will seek to extend full expensing to assets for leasing when fiscal conditions allow and will publish draft legislation shortly.

HOW WILL THESE policies IMPACT YOUR BUSINESS CUSTOMERS?

Explore how these policies will impact your business customer with these Essentials Finance & Taxation guides: