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Resources

Chancellor’s Budget Summary – October 2024

Resources

Chancellor’s Budget Summary – October 2024

This page was last updated on October 31, 2024
How does Rachel Reeves intend to turn around the UK economy? Here we summarise the key takeaways from the Autumn 2024 Chancellor's Budget - and the implications for personal and business finances.

In this summary, we’ve explained the key developments and changes from the Chancellor’s Budget announcement on 30 October 2024. For a pdf version of our full October 2024 Budget Summary click the green download pdf button on the right.

In this overview:

Background to the Budget

So, a new government and Chancellor are at the helm.

Since Labour’s win in the summer’s general election, there has been intense speculation about the contents of this Budget. The depressing statement issued by Rachel Reeves before Parliament’s summer recess revealed a £22 billion “black hole” in government finances for this year, plus a range of immediate cost-cutting measures. At the time, she warned of further “difficult decisions” ahead.

A challenging balancing act

Having repeatedly ruled out changes to income tax, national insurance, VAT and (in their election manifesto) corporation tax, many expected Labour to subsequently focus on changes to capital gains tax and inheritance tax. 

As both the Prime Minister and Chancellor have been at pains to point out in recent days and weeks, balancing revenue generation from taxes against encouraging economic growth will be a difficult juggling act.

While Reeves reiterated Labour’s election pledge that there would be no increases in income tax, national insurance or VAT – and “no return to austerity”, she also indicated her first Budget would have its eye firmly on economic growth and investment.

A new direction is needed

Economic growth and investment is indeed a key priority. Recent quarterly releases from the Office for National Statistics showed that the UK economy had grown slightly, but not by the amount previously forecast.

Back in August, and to the relief of many homeowners, The Bank of England finally cut interest rates for the first time in nearly four years to 5% from 5.25%. Inflation, however, remained at 2.2% in August. This prompted further cautiousness from the Bank, which held interest rates at 5% in September.

Plugging the ‘black hole’

So how is the new Government looking to plug the ‘black hole’? Prior to the Budget, they had already been busy with controversial changes to winter fuel payments, increasing the energy windfall tax and announcing VAT on private school fees. This publication gives overviews and detailed information on the Budget announcements and their implications for personal, business and property-related taxes.

Key highlights from the October 2024 Budget

Final thoughts

As The Treasury releases more details from the Budget announcements, we will assess the implications for our clients. We will share our conclusions and advice on our website, in our Shipshape magazines, our Tax Facts card and in our conversations with clients.

In the meantime, if you wish to discuss how this Budget impacts you, please do talk with your usual Shipleys’ contact. Our key focus remains to help our clients navigate the changes smoothly and comfortably.


This Budget Summary is based on the Chancellor’s Budget Statement on 30 October 2024, supplemented by information from official publications.

It reflects our understanding of proposed changes to tax law and practice at the date of publication but is not a complete and definitive guide. The Budget proposals may be amended before the Finance Bill becomes law.

Specific advice should therefore be obtained before taking action, or refraining from taking action, on the basis of this information.

© 2024 Shipleys LLP

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