Rachel Reeves confirms Autumn Budget 2024 date: What does it mean for pensions, taxes and the economy?
Reeves is likely to make big changes to the economy which will affect your finances
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Chancellor Rachel Reeves has confirmed the date of the Autumn Budget 2024 after revealing a £20billion "black hole" in the public finances which the Government says needs to be addressed.
The new Labour Government will announce its plans for pensions, taxes and the wider economy on October 30 but what will likely come up?
Taxes
Labour promised voters it would not raise income tax, National Insurance or VAT on working-age people, but with yesterday's confirmation of a £20billion fiscal "black hole", many are preparing for taxes to be hiked in some capacity.
The Government has remained tight-lipped over its plans for capital gains tax (CGT), which is charged on the sale of certain assets, and inheritance tax (IHT), which is levied on assets from those who have passed away.
The Telegraph reports that the Treasury will outline plans to bring CGT in line, raising the tax's highest rate from 28 per cent to as much as 45 per cent.
According to Labour's manifesto, it will "end the use of offshore trusts to avoid inheritance tax" as part of its fiscal agenda.
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Rachel Reeves has confirmed the date of the Budget
PAThe proposed overhaul to non-dom status and offshore trusts is part of the Government's wider tax raid on higher earners, especially those from abroad.
Toby Tallon, a tax partner at Evelyn Partners, said that while inheritance tax changes are not confirmed or ruled out, updating the legislation to "reflect these proposals" could give Labour an opportunity for "further and more sweeping inheritance tax reform".
He added: "If the new Government did increase inheritance tax, what might it do? While the manifesto is silent on this, a number of areas have come up in discussions, mainly reliefs.
"The new Chancellor Rachel Reeves said in 2021 that she would look at 'every single tax break'."
Pensions
Both Labour and the Tories pledged to keep the state pension triple lock going into this month's General Election, guaranteeing older Britons an annual rate hike.
However, Prime Minister Keir Starmer stopped short of agreeing to match the Conservatives' "triple lock plus" pledge. The Tories froze the tax-free personal allowance threshold until 2028, meaning more and more people have been dragged into higher tax bands in recent years.
Under the "triple lock plus" proposal, the personal allowance for pensioners would have gone up every year in line with whatever the triple lock is.
Essentially, this would have ensured pensioners would not have to pay tax on their state pension alone and protected them from fiscal drag.
In its current trajectory, experts are forecasting the full, new state pension will exceed the personal allowance within this Parliament.
As such, Reeves and Starmer may explore tax-saving options for pensioners in the upcoming Budget to mitigate adding to the financial burden placed on older households.
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Labour's plans for the economy hope to lower energy bills
PAEconomy
Earlier this month, the Government rolled out its plans for Great British Energy which it hopes will push its net zero agenda and lower energy bills in the long term.
Under the new publicly owned energy company, Labour hopes to increase renewable energy projects which will be boosted by £8.3billionn in state funding.
This tax revenue will reportedly be paid for by a windfall tax on oil and gas giants.