Chancellor Jeremy Hunt outlined the government's 2024 budget plans along with a range of policies that will impact British businesses and employees nationwide. Below is a summary of the main ideas:

Tax reduction

The budget's main feature is a 10% cut in national insurance, which will take effect the following month, to 8%. Figures suggest that this move will save the average worker £450 a year, which validates Hunt's theory that reduced taxes encourage economic growth.

Support for small firms

The VAT threshold has been raised from £85,000 to £90,000 in order to lessen the financial burden on small firms. Smaller businesses will have less financial and administrative strain as a result of this modification.

Individual Savings Account (ISA) Reform

In response to requests from the city and high-growth enterprises, among others, the government intends to launch a new "British ISA." Through this scheme, people will be able to contribute an additional £5,000 a year, which will help promising UK firms flourish.

Investment in Creative Industries and Green Energy

A government fund with the goal of assisting green energy projects is allotted £120 million in the budget. In addition, policies have been put in place to support the creative industries, acknowledging their contribution to economic expansion and tourism.

Actions to Promote Employment 

Hunt highlighted the significance of putting people back to work and unveiled initiatives to solve labor shortages and fill job vacancies without depending on immigration. This covers programs pertaining to child care as well as assistance for childcare providers in order to enable the growth of free childcare services.

Duty and Tax Reforms

A new vaping tax is intended to deter nonsmokers from starting the habit, while changes to property taxes are intended to make the system more equitable for nearby areas.

Economic Achievements

Hunt emphasized how the administration had been able to lower inflation and boost corporate investment. He cited predictions for increased business investment and a further drop in inflation as proof of the government's sound economic management. 

A careful analysis of the budget's consequences will be crucial for navigating the changing economic landscape as workers and businesses adjust to these changes.

What are the takeaways for Global Markets?

The UK is in a bout of an economic slowdown. As these policies come into play, the reduction of the burden on consumers will spill into increased spending income. Marketers can rest assured that the more disposable income that is available to their customers, the more they will have customers spending money on their products. 

Let's hope Rishi Sunak's policies lead to an effective change.