Autumn Budget 2024 roundup

The Chancellor of the Exchequer, Rt Hon Rachel Reeves MP, presented her Autumn Budget 2024 to Parliament on Wednesday 30 October 2024.

You can find the Chancellor’s speech in full, and the Budget document here.

All associated supplementary documents can be found here. You can re-watch the Chancellor’s speech on HM Treasury’s LinkedIn, YouTube, or on X.

The Office of Budget Responsibility’s Economic and fiscal outlook document is available here.

Key Announcements from the Budget

National Insurance

Two key changes were made to national insurance –

• Employer national insurance contribution (NICs) will increase by 1.2 percentage points to 15% and the threshold at which NICs start to be paid will be reduced from £9,100 per year currently to £5,000 per year. This will apply from the start of the next financial year, on 6 April 2025. 
• The very smallest businesses will benefit from an increase in Employment Allowance from £5,000 to £10,500 per year. The £100,000 threshold will also be removed, allowing more businesses to take advantage of this allowance

National Minimum and Living Wage

• The national living wage, for employees aged 21 and over, will rise 6.7% to £12.21 per hour from April next year and the national minimum wage for 18–20-year-olds will rise 16.3% to £10 per hour. 
  • Over time, the Government's aim is to close the gap between the two and have a single adult minimum wage. 

• For those aged 16 or 17, the minimum wage will rise from £6.40 an hour to £7.55.
• The apprentice rate, which applies to eligible people under 19 or those over 19 in the first year of an apprenticeship, will increase from £6.40 an hour to £7.55.

Business Rates

• A permanent lower business rates multiplier for retail, hospitality and leisure properties of 40% was announced, however this is down on the currently temporary rate of 75%, which will expire on 31 March 2025. The new rate will be capped at £110,000.
• The Treasury also published a discussion paper on Business Rates reform with three objectives: protecting the high street; encouraging investment; and creating a fairer system. The Treasury will begin engagement on proposals straight away, concluding in March next year.

Air Passenger Duty (APD)

• APD in 2026/2027 will:
  • Increase by £2 to £15 for short-haul flights in economy
  • Increase by £4 to £32 for short-haul flights in premium classes  
  • Increase by £12 to £102 for long-haul flights in economy
  • Increase by £28 to £244 for long-haul flights in premium classes  
• APD on private jets is also increasing - further details on this can be found here 

Fuel Duty

• Fuel duty will not rise in 2025 and the previous five pence per litre duty cut will stay in place.

Alcohol Duty

• Alcohol Duty on draught products below 8.5% ABV will be cut by 1.7% which equates to 1p in the pint.
• All other Alcohol Duty will increase in line with RPI, 3.65% increase, from 1 February 2025.

Tourist Charges & VAT-free Shopping

• No changes to Visa fees, ETA costs etc. were announced.
• No changes were announced regarding VAT-free shopping for international visitors.

DCMS funding

• The DCMS settlement will grow in real terms by 2.6% between this year and next.
• This extra funding will be used, in part, for increase the Grant-in-Aid for National Museums and Galleries to ‘help support their long-term sustainability.’ 

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Industry Reaction

Business West:

Autumn Statement 2024: Business West's Managing Director, Phil Smith, responds to the budget in a blog post: Business West Blog

Tourism Alliance:

The Tourism Alliance issued a special Budget Newsflash with headlines and hot-takes from the Budget statement: Tourism Alliance newsletter

UKInbound:

UKInbound released a press statement from CEO Joss Croft OBE on his reaction to the Chancellor's statement: Statement on LinkedIn

Bristol Hoteliers Association:

Bristol Hoteliers Association issued a press release with their reaction to the Budget: Read press release.

UKHospitality:

UKHospitality's press release focuses on increased taxes for the industry, but welcomes news on revised business rates for hospitality: Read press release.

British Beer and Pub Association

Emma McClarkin, CEO of the British Beer and Pub Association issued a Budget response: BBPA Budget response

Images (c) HM Treasury