Autumn Budget 2024: When it is and what experts predict will happen
THE Chancellor has announced that this year’s Autumn Statement will take place on Wednesday, October 30.
The Autumn Statement provides an update on the government’s economic plans, based on forecasts from the Office for Budget Responsibility (OBR).
As part of this, the Chancellor updates all the MPs in parliament about the government’s tax and spending plans for the year ahead.
This means that we learn what’s going to happen to things like fuel duty, income tax, and even the cost of a pint.
It’s one of the biggest days in the economic calendar and this year, experts are predicting that chancellor Rachel Reeves will announce significant tax changes to try and plug the £22million black hole in the country’s finances.
Ms Reeves warned MPs that her fiscal statement would involve “difficult decisions across spending, welfare and tax”.
Likely candidates for tax raids include changes to Inheritance Tax, Capital Gains Tax (CGT), pensions, and VAT exemptions.
The Treasury has said: “The Chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22billion hole in the public finances left by the last government.”
The Autumn Statement is still some time away, and more predictions will emerge between now, but here are the most predicted changes to watch out for.
Inheritance tax
It is widely expected that the Chancellor will announce changes to inheritance tax in her statement.
This is the tax that is paid on the value of someone’s estate after they die.
The standard rate for inheritance tax is 40%. However, there is speculation that the government might increase the rate, or the thresholds could be lowered, meaning more people would be subject to the tax.
Additionally, Labour may consider shortening the period before death during which gifts can be made without triggering inheritance tax.
Pensions
Labour previously said it would reintroduce the Lifetime Allowance for pensions, which caps the total amount you can save into your pot tax-free.
This proposal was dropped at the last minute during the election campaign, but Labour may consider other pension tax reforms instead.
Ms Reeves has previously campaigned to reduce the tax relief that higher earners get on their pension, and to instead introduce a flat rate of 33%.
Currently, you get tax relief at your marginal rate of tax, so a flat rate of 33% would mean higher earners would get less relief.
This has led some financial commentators to speculate that this reform could be in scope for the Autumn Statement or future budgets.
Another possible target is changing the rules around pensions and inheritance tax.
Currently, pensions are not counted as part of someone’s estate when they die and can therefore be passed on inheritance tax-free. It’s possible that this could be reviewed.
Capital Gains Tax
You pay CGT when you sell an asset that has appreciated in value, such as stocks, shares, a second home, or valuable artwork.
Currently, the first £3,000 of profits (or £1,500 for trusts) is tax-free.
However, some experts are predicting that this allowance could be scrapped entirely and that the tax could be extended to include other assets.
Business Rates
Business rates are levied on properties that aren’t first homes, including shops, offices, pubs, warehouses, factories, holiday rental homes, and guest houses.
During the election campaign, prime minister Sir Keir Starmer pledged to overhaul the system to support small businesses. These changes could be announced in the Autumn Statement.
One potential reform could involve basing the rates on the value of the land, rather than the current estimated annual rental costs.
Winter Fuel Payments
Ms Reeves has already confirmed that universal winter fuel payments will be slashed, starting from this year.
In the past, winter fuel payments have been made available to everyone above state pension age. But now, the money will only be available for those people who receive certain benefits.
Households with someone over the state pension age receiving means-tested benefits including Pension Credit, Universal Credit and income support will still receive the cash.
It will be worth £200 for eligible households, or £300 for eligible households with someone aged over 80.
Fuel duty
The Treasury has refused to rule out a rise in fuel duty, which could prove a shock to household finances.
The levy hasn’t risen since 2011 and was even slashed by 5p in March 2022.
It was The Sun’s Keep It Down campaign that secured a 12-month extension to the temporary fuel duty cut in March last year.
Motor association the AA has warned that for low-paid workers, losing this tax relief could result in an additional £171.60 in annual fuel costs.
The Sun's 14-year campaign to freeze fuel duty
The Sun has backed drivers as part of the Keep It Down campaign with rates of fuel duty not rising since the start of 2011.
Former Chancellor of the Exchequer Jeremy Hunt earlier this year thanked Sun readers for helping him to make the case to freeze fuel duty in his last Budget.
The freeze meant drivers would not have to face a potential £100 rise in motoring costs as a result of a 12p per litre duty hike.
Our decade-long campaign fights on behalf of readers to freeze duty on petrol and diesel to help deal with rising living costs.
Mr Hunt said: “I know how much Sun readers are feeling the pinch right now.
“Whether you drive a van, a hatchback or a people carrier I know how much you need to be on the road.
“Keeping it down means hard-working people will have an extra £100 this year without having to cut down using their vehicle.”
Household support fund
The household support fund exists to help families on low incomes with essential costs.
For instance, you can go to your local council if you’re struggling to afford things like:
- energy and water bills
- food
- essential items
The support fund is due to close on September 30, but it is possible that the government might choose to extend it, and if so, this could be announced in the Autumn Statement.
What won’t change
Labour confirmed in the election race that it would not make changes to National Insurance, Income Tax, Corporation Tax or VAT – taxes on typical workers – so we are unlikely to see any of these taxes rise.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories