Weekly Digest – 06 November 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
The chart that reveals the Budget’s real winners – and who will be hit hardest
Chancellor Rachel Reeves announced rapid spending growth this year and next year, but current plans imply further cuts after 2025, economists have warned. Nine out of 10 taxpayers will benefit as a percentage of income from the Budget, according to a Treasury analysis.
Experts weigh in on the impact of Budget 2024 on UK’s prime housing market
The Budget, for the most part, was a series of financial commitments aimed at those who depend on public services. So, how might this impact the prime housing market, which caters exclusively to the UK’s wealthiest buyers?
Two-thirds of business leaders react negatively to Budget
A snap poll of over 700 Institute of Directors members following the Chancellor’s Budget Statement has found that two-thirds (67%) of business leaders feel negatively towards the Autumn Budget and two-thirds (67%) think that it does not support the Government’s growth mission.
Budget burden placed squarely on businesses as growth risks becoming anaemic once again
Lindsay James, investment strategist at Quilter Investors evaluates the economic impact of the budget and the potential reaction of financial markets. She said “Growth has been at the forefront of Labour’s offer since the election was called, yet forecasts from the Office for Budget Responsibility highlight that while there is a small boost to growth next year, the rest of the decade sees growth slowing once more and risks becoming anaemic once again, with 2028 seeing just 1.5% growth”.
Autumn Budget makes significant changes to inheritance tax
The Autumn Budget of 2024 introduces significant changes to inheritance tax laws. These changes impact how assets are passed down to heirs, potentially affecting estate planning strategies. Key alterations include adjustments to tax rates, thresholds, and exemptions, requiring individuals to review and potentially revise their inheritance plans accordingly.
The Labour Party’s Bold Budget: A closer look at tax, business, and investment proposals
The UK Chamber examines the Labour Party’s budget proposals on tax, business, and investment. At a glance, Labour’s budget is built on promises of fair taxation, strategic public investment, and support for small businesses. Designed to boost key sectors like education, healthcare, and infrastructure, the budget seeks to recalibrate the economy by shifting the tax burden towards wealthier individuals and large corporations. However, reactions across markets have been mixed, with some investors cautious about potential growth constraints.
Budget 2024 verdict: big and bold, but borne by business
Chancellor Rachel Reeves focused on delivering economic stability with her wide-ranging first Budget – but short-term tax raising measures worth £40bn fall primarily on the shoulders of business. Read the ICAEW Insights here.
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