Daanish Hussain on UK Autumn Budget

The UK Autumn Budget 2024 introduces radical changes which are to be directly affecting household, businesses, and the general economy, mainly in the fields of business taxation, pensions, and social welfare.

Corporation tax has been set to stay at 25%. This move was announced by the chancellor, Rachel Reeves, while retaining the promise of the Labor government not to make big changes to the tax despite its relatively high rate for recent years. It will add an additional 1.2% to National Insurance contributions for businesses starting in April 2025, and the new threshold change will be applicable mainly to smaller businesses. Importantly, the government is going to abolish the "non-dom" tax status and shift toward a residence-based complete tax system, applicable from 2025, with an objective of fair contribution by UK residents. KPMG. HAWKSFORD. Social and Business Implications
For example, significant uplifts in the National Living Wage are due in 2025, when it will reach £12.21 per hour. This seeks to partly counteract the impact of inflation on real wage growth, but such a move could heighten concerns for businesses as they seek to control labour costs. In addition, VAT in private schools will be increased from April 2025, and a new 38% energy profits levy will be imposed on qualifying sectors. Taken together, these changes certainly mark a movement toward a redistributive tax policy, but this comes at the cost of some impacts on education spending and consumer energy prices
.

Stabilizing the economy is another priority of the budget, and support is given to small businesses, at the same time. The employment allowance will increase to £10,500, thus allowing smaller businesses to further cut down their National Insurance burden. On the environment and green agenda, electric vehicle tax benefits will remain at least until 2028 to help businesses meet the UK's net-zero goals. While the budget does include some revenue-raising measures, its wider effect on consumer demand and business investment is a main focus of continued scrutiny as this Labour government strives for economic growth while making sure the cost of fair taxation is also met.

This budget reflects Labour's strategic goals in balancing tax distribution, mainly targeting high-income earners and businesses while still addressing caution toward inflationary pressures on low and middle-income families. Fiscal changes might pose a challenge to the retail and hospitality sectors as they navigate this change in tax incentives and labour costs.

GS Ayco
-Â FULL POSTAL ADDRESSÂ of the company: Mellon Bank Center
1735 Market Street
26th Floor
Philadelphia, PA 19103
- Detailed contact informations: Alistair Goodwin, Alistair.Goodwin@gs.com
- Presscontact: Alistair Goodwin

GS Ayco Management

Investment management

GS Ayco
-Â FULL POSTAL ADDRESSÂ of the company: Mellon Bank Center
1735 Market Street
26th Floor
Philadelphia, PA 19103
- Detailed contact informations: Alistair Goodwin, Alistair.Goodwin@gs.com
- Presscontact: Alistair Goodwin

GS Ayco Management

Investment management

This release was published on openPR.