CHANCELLOR of the exchequer, Rachel Reeves, has announced her first budget – and it has far reaching consequences for businesses, entrepreneurs – and indeed much of the UK population.
Reeves – the first woman to become the government’s chief finance minister – introduced significant changes aimed at balancing the UK’s fiscal challenges with targeted economic reforms.
At the heart of her 2024 Autumn Budget was a substantial £40 billion increase in taxes. A notable shift was the employer National Insurance Contributions (NIC) increase by 1.2 percentage points, impacting many businesses as thresholds were also lowered.
Image: Suzy Hazelwood
Additionally, Reeves announced the expansion of National Living Wage to £12.21 per hour from April 2025, alongside a 6.7% rise in the National Minimum Wage, signalling a focus on supporting lower-income workers despite added employer costs
For property owners, the budget introduced an increased stamp duty on second homes, a measure expected to affect rental markets as landlords pass on costs to tenants. Also prominent was the restriction of certain inheritance tax reliefs, capped at £1 million, affecting business and farm owners
Meanwhile, Reeves announced the inheritance tax cap – which has been in place since 2009 – would be extended until 2030, meaning more families are likely to be drawn into the controversial tax. She also increased Capital Gains Tax, meaning the basic rate of 10% will increase to 18% and the 20% rate will increase to 24%.
You can read about every budget announcement in our special guide which can be accessed via the link below.
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