Alcohol duty freeze extended and fuel duty cut maintained
- Chancellor announces a further 2p cut to National Insurance
- Reduction in National Insurance expected to save average worker £450 a year
- Chancellor resists calls to cut business rates and abolish tourist tax
- Alcohol duty freeze extended until February 2025
- 5p cut in fuel duty extended for another 12 months
- Government to publish draft legislation for full expensing of leased assets
- Tax system for non-domiciles to be replaced with a fairer residency system
- Threshold for High Income Child Benefit Charge to be raised by £10,000
- Inflation expected to fall below 2% in a few months
- Economy expected to grow 0.8% this year and 1.9% next year
Chancellor Jeremy Hunt has announced a further 2p cut to National Insurance, falling from 10% to 8% from 6 April, as part of his Spring Budget for “long-term growth”. The reduction in National Insurance is expected to save the average worker £450 a year, or £350 for those who are self-employed. This cut to National Insurance follows the 2p cut announced by Hunt in the Autumn Budget last year. However, the chancellor resisted calls from retail and hospitality bosses to cut business rates and abolish the current level of tourist tax. Reports Hunt could also move to reduce national income tax were also unfounded. The level of corporation tax was also left unchanged. Alcohol duty was set to rise by 3% but the chancellor announced that he has extended the alcohol duty freeze until February 2025. He claimed that this would benefit around 38,000 pubs and sit on top of the £13,000 saving a typical pub will get from the 75% business rates discount. Hunt said this extension demonstrates the government’s support of “the great British pub”. Elsewhere, Hunt extended a 5p cut in fuel duty for another 12 months, which has been frozen at 57.95p since 2011, following a temporary drop of 5p in 2022. The chancellor said that these combined freezes will help reduce inflation by 0.2% over the period and help the government reach the Bank of England’s 2% target. Hunt also stated that business investment this year will be 10.6% of Britain’s GDP and will continue to rise. To help boost continued investment, Hunt stated that the government will shortly publish draft legislation for full expensing to apply to leased assets, a measure to be brought in “as soon as it is affordable”. Full expensing was introduced as a temporary measure at the last budget and will now become a permanent tax cut for businesses. Moreover, Hunt announced that he would abolish the current tax system for non-domiciles and replace it with a “fairer and competitive” residency system. It will see non-doms pay the same level of tax as UK citizens after four years of residency, overall the chancellor said it will raise £2.7bn a year by the end of its initial period. He also announced that from April the threshold for High Income Child Benefit Charge will be raised by £10,000 to £60,000, with the highest taper rising to £80,000. He also announced plans to change the way the charge works turning it into a household calculation by 2026. During his speech, Hunt noted that when he and the prime minister came to power inflation was at 11% and during their tenure it has since been brought down to 4%. He claims the latest OBR data shows it will fall to below 2% in “just a few months time” nearly a year earlier than predicted in the Autumn Budget last year. Furthermore, the OBR expects the economy to grow 0.8% this year and 1.9% next year with Hunt claiming the UK has “turned the corner on inflation”. Other measures announced included:
Factuality Level: 3
Factuality Justification: The article provides a detailed account of Chancellor Jeremy Hunt’s announcements during the Spring Budget, including cuts to National Insurance, alcohol duty freeze, fuel duty freeze, and changes to tax systems. However, the article lacks critical analysis and does not provide any opposing viewpoints or potential drawbacks of the proposed measures. It also presents the information in a one-sided manner without addressing any potential controversies or criticisms surrounding the budget decisions.
Noise Level: 3
Noise Justification: The article provides detailed information about the recent announcement by Chancellor Jeremy Hunt regarding cuts to National Insurance, alcohol duty, fuel duty, and other tax-related changes. It includes specific numbers and figures to support the claims made. However, the article lacks critical analysis, alternative perspectives, or potential drawbacks of the proposed measures. It also does not delve into the long-term implications or potential challenges that may arise from these tax cuts and freezes.
Financial Relevance: Yes
Financial Markets Impacted: The announcement of the 2p cut to National Insurance may impact the financial markets, as it could affect the disposable income of workers and self-employed individuals. It could also have implications for government revenue and fiscal policy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses financial measures announced in the Spring Budget by Chancellor Jeremy Hunt. While there is no mention of an extreme event, the news is relevant to financial topics and may impact financial markets and companies.
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