Menu

The UK government on 30 October presented its Autumn Budget 2024 to the parliament with a plan to raise taxes by £40 billion. The first budget by a Labour Party government in 14 years plans to increase employers’ national insurance contributions by 1.2 percentage points to 15% and reduce a secondary threshold when contributions are due from £9,100 to £5,000.

Among other tax increases, the lower rate for capital gains tax will be raised from 10% to 18%, and the higher rate from 20% to 24%. Taxes on tobacco and alcohol will increase. VAT on private school fees will be introduced in January 2025. And air passenger duty will increase by up to £2 for each economy short-haul flight and private jets will attract an additional 50% air passenger duty, up to £450 per passenger for a flight.

Reacting to the budget, Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organisations, said: “The Budget has delivered a stark message: tax hard, balance the books – but brace for an economic scar as talent and investment flood out.”

He added that the tax hikes are a clear “disincentive to live, work, and invest in the UK.”