In a bid to close the £22billion in public finances, Rachel Reeves announced a variety of tax and borrowing measures.
But what exactly was announced?
State pension triple lock
The chancellor confirmed the triple lock increase for state pensioners. She said: "While working-age benefits will be uprated in line with CPI at 1.7 per cent, the basic and new state pension will be uprated by 4.1 per cent in 2025-26.
"This means that over 12 million pensioners will gain up to £470 next year."
She added: "The pension credit standard minimum guarantee will also rise by 4.1 per cent from around £11,400 per year to around £11,850 for a single pensioner."
Fuel duty
Fuel duty will be frozen next year at a cost to the Treasury of more than £3bn, Reeves has announced.
In her Budget speech to the Commons, Reeves said this is a "substantial commitment" but insisted raising taxes on fuel would be "the wrong choice for working people"
Budget2024: Rachel Reeves and Keir Starmer ahead of the Budget
PAUniversal Credit boost announced
Reeves announced that Labour will be lowering the cap on deductions that can be taken from benefit payments by up to £420 a year.
It is estimated that the change will benefit around 1.2 million households across the country, including 700,000 families with children.
VAT on private schools
Reeves has confirmed Labour's planned VAT raid on private schools, effective January 2025.
Speaking during the Budget today, Reeves told the Commons: "We will introduce VAT on private school fees from January 2025, and we will shortly introduce legislation to remove their business rates relief from April 2025 too.
National Insurance changes
Reeves announced the expected increase in employers’ National Insurance contributions but has thrown a lifeline to small businesses. Employers will pay an additional 1.2 per cent to 15 per cent, from April 2025.
The secondary threshold – the level at which employers start paying national insurance on each employee’s salary – will also be reduced from £9,100 per year to £5,000. This will raise £25billion per year by the end of the forecast period.
Capital gains tax
The lower rate of capital gains tax (CGT) on the sale of assets will increase from 10 per cent to 18 per cent. The higher rate will go from 18 per cent to 24 per cent. CGT on the sale of residential property will also increase from 18 per cent to 24 per cent.
Stamp duty
From tomorrow the stamp duty charge for second homes, or "higher rate for additional dwellings", will increase by two percentage points to five per cent
Inheritance tax
Reeves has announced three major changes.
She stated that the inheritance tax personal allowance threshold will be extended until 2030.
She has also announced that inherited pensions will now be included in inheritance tax. Finally, she will reform agricultural and business relief from April 2026.
National minimum wage
For people 21 and over will rise by 6.7 per cent to £12.21 an hour. This is the equivalent of £1,400 a year for a full-time worker. Workers aged 18 to 20 will see their minimum wage increase by 16.3 per cent to £10 an hour.
Carer's Allowance
People will now be able to earn £10,000 or more while claiming Carers Allowance. This will mean an extra £81.90 for those newly eligible.
Alcohol duty
Rachel Reeves has announced she will be cutting the duty on draught beer by 1.7 per cent.
The Chancellor made the announcement in her Budget in the Commons saying it would lead to a "penny off the pints at the pubs".
