UK government’s final Spring Budget before general election

The Chancellor has delivered his final Spring Budget before the general election. The date of the election has yet to be decided and, while it could be as late as January 2025, most commentators suggest an autumn date is likely (in which case there could still be time for another Autumn Statement). However, there is also speculation that it could be as early as 2 May, coinciding with local council elections. The theme of the Budget was long-term growth, but the measures attracting most press attention focus on putting money into working people’s pockets.

There is to be a (further) 2% cut in employee national insurance contributions (NICs) from 6 April 2024. This is the same policy lever – and the same amount of reduction – as delivered through last year’s Autumn Statement, meaning that, from 6 April 2024, the employee NICs rate will be 8% rather than the 12% that applied one year ago.

The Chancellor said he was continuing to cut NICs because it was “unfair” that income from having a job was taxed more than income from other sources, and his “long-term ambition is to end this unfairness” by continuing to cut NICs when it “is responsible” to do so. Unlike income tax, NICs are not payable on pensions, dividends, savings income etc.

There were few references to pension-specific measures, but no significant changes and mostly these had been announced previously.

• National Insurance Contributions (NICs)
• Reform of High Income Child Benefit Charge (HICBC)
• HMRC consults on raising standards in the tax advice market
• UK ISA
• Triple lock on State Pensions
• Environmental, Social and Governance (ESG) ratings to be regulated
• Lifetime provider
• Pension funds backing UK business
• Mansion House Compact