Chancellor Jeremy Hunt is laying out his plan for the country’s finances going forward in the House of Commons.
Here is what the chancellor has announced:
- Tax as a percentage of GDP will increase by just 1% over the next five years;
- On personal tax, he will reduce the threshold at which the 45p rate becomes payable from £150,000 to £125,140. Those earning £150,000 or more will pay just over £1,200 more a year;
- The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024;
- Confirmed two new fiscal rules – the first is that underlying debt must fall as a percentage of GDP by the fifth year of a rolling five-year period. The second is that public sector borrowing, over the same period, must be below 3% of GDP;
- From April 2025, electric cars will no longer be exempt from Vehicle Excise Duty;
- On windfall taxes, from 1 January until March 2028 he will increase the energy profits levy from 25% to 35%;
- Also from 1 January, “we have also decided to introduce a new, temporary 45% levy on electricity generators… together these taxes raise £14bn next year”.
- Stamp duty cuts will stay in place until March 2025;
- While the employers’ national insurance contributions threshold is frozen until April 2028, the employment allowance will be retained at its new, higher level of £5,000 until March 2026;
- Hunt confirms the UK will continue to maintain the defence budget at least 2% of GDP to be consistent with our NATO commitment – but there is no 3% commitment as previously promised.
- 600,000 more people on Universal Credit will be asked to meet with a work coach to increase hours or earnings;
- On education, the chancellor has said he will invest an extra £2.3bn per year in schools;
- A £2.8bn funding increase for the social care sector;
- With regards to the NHS, the government will increase the budget for healthcare by £3.3bn.
Source: Skynews.com