{"id":164643,"date":"2024-10-30T13:13:57","date_gmt":"2024-10-30T13:13:57","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/10\/30\/budget-2024-employers-national-insurance-rise-is-bigger-than-predicted-as-chancellor-seeks-to-raise-40bn-in-taxes\/"},"modified":"2024-10-30T13:13:57","modified_gmt":"2024-10-30T13:13:57","slug":"budget-2024-employers-national-insurance-rise-is-bigger-than-predicted-as-chancellor-seeks-to-raise-40bn-in-taxes","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/10\/30\/budget-2024-employers-national-insurance-rise-is-bigger-than-predicted-as-chancellor-seeks-to-raise-40bn-in-taxes\/","title":{"rendered":"Budget 2024: Employers’ national insurance rise is bigger than predicted as chancellor seeks to raise \u00a340bn in taxes"},"content":{"rendered":"
\"Budget<\/div>


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The budget will increase taxes by \u00a340bn, with the lion’s share coming from a \u00a325bn rise in employers’ national insurance contributions, the chancellor has announced at the budget.<\/p>\n

Rachel Reeves added there would be measures to protect small businesses from the change.<\/p>\n

Ms Reeves, who said she was “deeply proud” to be the country’s first female chancellor, insisted the Labour government would “invest, invest, invest” and put “more pounds in people’s pockets”.<\/p>\n

But she also announced tax rises worth \u00a340bn, thought to be the largest increase at a budget since 1993 and John Major’s government.<\/p>\n

An increase in employers’ national insurance contributions to 15% will raise \u00a325bn per year from April 2025, Ms Reeves announced – in what she said had been a “difficult choice” to make. Businesses previously paid a rate of 13.8% on employees’ earnings above a threshold of \u00a39,100 a year – a threshold the chancellor dropped to \u00a35,000.<\/p>\n

The chancellor stressed the tax hikes – along with two per cent cuts to spending at all government departments – were needed to fill a \u00a322bn “black hole” in the public finances, which the government says it inherited from the Tories.<\/p>\n

The chancellor said a “line-by-line breakdown” of the black hole will be published, which she said shows there were “hundreds of unfunded pressures on the public finances” under the Conservatives.<\/p>\n

Fuel duty will also stay frozen next year, the chancellor said.<\/p>\n

Follow live: All the latest on budget day<\/a><\/strong><\/p>\n

The chancellor started her budget speech by saying the country “voted for change” and “responsible leadership” on 4 July at the general election – and went on to attack the “irresponsibility” of the previous Conservative government.<\/p>\n

“We must restore economic stability and turn the page on the last 14 years,” she said.<\/p>\n

Ms Reeves added: “The party opposite failed our country. Their austerity broke our National Health Service. The British people have inherited their failure.”<\/p>\n

“They called an election to avoid making difficult choices,” she continued.<\/p>\n

The chancellor outlined her priorities as economic growth and the NHS, and pledged an end to “short-termism”.<\/p>\n

By keeping the triple lock on pensions, the chancellor said 12 million pensioners will gain up to \u00a3470 next year.<\/p>\n

She also set aside \u00a311.8bn for compensation for victims of the infected blood scandal, and \u00a31.8bn for victims of the Post Office IT scandal.<\/p>\n

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\n Rachel Reeves poses with the red budget box in Downing Street before the budget. Pic: Reuters
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Ahead of the first Labour budget since Alistair Darling’s in 2010, Labour committed in its election manifesto to not increase income tax, national insurance or VAT on “working people”.<\/p>\n

Various ministers got into a tangle over who exactly qualified as a working person in the weeks before the budget.<\/p>\n

That was compounded when it was revealed the government was planning to increase employers’ national insurance contributions, as Labour argued it would not be breaking its manifesto promise by doing so.<\/p>\n

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\n \"Britain's\n <\/div>
\n Image:<\/span>
\n Pic: Reuters
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A few other plans were leaked or announced ahead of the budget, including:<\/p>\n

\u2022 A change to the fiscal rules – the way in which the government borrows and pays back money – in order to allow for greater investment spending<\/strong><\/a><\/p>\n

\u2022 An increase to the bus fare cap by 50% to \u00a33<\/p>\n

\u2022 A boost to the national living wage, with the minimum someone aged 21 and over can be paid increasing by 6.7% to \u00a312.21 an hour<\/p>\n

\u2022 The national minimum wage, for 16 to 20-year-olds, will also increase – by 16.3% to \u00a310 an hour<\/p>\n

\u2022 Nearly \u00a33bn in new funding for the Armed Forces.<\/p>\n

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You can receive breaking news alerts on a smartphone or tablet via the Sky News app<\/strong><\/a>. You can also follow @SkyNews on X<\/strong><\/a> or subscribe to our YouTube channel<\/strong><\/a> to keep up with the latest news.<\/em><\/p>\n<\/p><\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The budget will increase taxes by \u00a340bn, with the lion’s share coming from a \u00a325bn rise in employers’ national insurance contributions, the chancellor has announced at the budget. Rachel Reeves added there would be measures to protect small businesses from the change. Ms Reeves, who said she was “deeply proud” to be the country’s first […]<\/p>\n","protected":false},"author":2,"featured_media":164644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/e3.365dm.com\/24\/10\/768x432\/skynews-rachel-reeves-budget_6732970.jpg?20241030112346","fifu_image_alt":"","footnotes":""},"categories":[603],"tags":[121393,1166,5002,4949,99822,11068,4372,11023,4605,572,5113,1830],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/164643"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=164643"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/164643\/revisions"}],"predecessor-version":[{"id":164645,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/164643\/revisions\/164645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/164644"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=164643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=164643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=164643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}