Key Announcements in Jeremy Hunt’s Spring Budget
Tax Cuts
- Employee National Insurance Contributions cut from 10% to 8%
- Self-employed national insurance cut from 8% to 6%
Child Benefit Reform
- Threshold for high income child benefit charge increased to £60,000
- Consultation on moving to a household-based income system by April 2026
“Non-Dom” Tax Status Scrapped
- Introduction of a modern residency-based tax system
- New arrivals exempt from tax on foreign income for first four years
Changes to Loans and Debt Relief
- Repayment period for Universal Credit budgeting advance loans extended to 24 months
- Abolishment of £90 charge for debt relief order
Public Sector Productivity Plan
- Funding for NHS productivity improvements
- Investment in AI for NHS efficiency
British ISA Introduction
- New British ISA allowing additional £5,000 annual investment
Levelling Up Cash Allocation
- £100 million for levelling up projects in various areas
- Expansion of town plan to 20 new places receiving £20 million each over 10 years
Devolution Expansion
- Trailblazer devolution deal for North East
- Plans to devolve powers in Buckinghamshire, Warwickshire, and Surrey
VAT Threshold Increase
- VAT threshold raised from £85,000 to £90,000
Alcohol and Fuel Duties
- Freeze in alcohol duty extended to February 2025
- Freeze in fuel duty extended for the fourteenth year in a row
New Vape Tax and Other Duties
- Excise duty on vaping products from October 2026
- Increased tobacco duty
Memorial for Muslim Soldiers
- £1 million allocated for building a memorial for Muslim soldiers
Childcare Expansion Funding
- Guarantee of rates for childcare providers for the next two years
Other Highlights
- Air passenger duty increased for non-economy flights
- Windfall tax on oil and gas firms extended to 2029
- Tax relief and funding for film and culture businesses