Chancellor Rachel Reeves presented the Labour Government's highly anticipated Autumn Budget Statement on 30th October 2024, with taxes to rise by £40billion to fill the gap in public finances. 

We have taken the main points from the Autumn Statement, and have outlined these below. 

For the comprehensive One Four Nine Wealth guide to the Autumn Budget Statement, please click here, 

If you think that your current retirement plans, pensions, long-term investments or overall financial position will be impacted by the changes outlined in the statement, then please do get in touch with your advisor here, call us on 0141 572 1340 or email us at enquiries@mccreafs.co.uk. 

Inflation and the Economy 

• The UK's inflation rate expected to average 2.5% this year, 2.6% in 2025, then 2.3% in 2026
• The Office for Budget Responsibility predicts the UK economy will grow by 1.1% this year, 2% next year and 1.8% in 2026 

Wages 

• The National Living Wage for employees aged 21 and over will rise by 6.7%, from £11.44 an hour to £12.21 
• Workers aged 18-20 will have their National Minimum Wage increase from £6.80 an hour to £10 
• For those aged 16 or 17, the minimum wage will rise from £6.40 an hour to £7.55

Personal Taxes 

• Rates of Income Tax and National Insurance (NI) paid by employees to remain the same
• Income Tax band thresholds to be unfrozen in 2028, preventing more people being dragged into higher bands as wages rise over time 
• Capital Gains Tax paid on profits from selling shares to increase from 20% up to 24% with immediate effect

Business Taxes 

• National Insurance (NI) contributions for employers will increase from 13.8% to 15% from April 2025, which is expected to raise £25billion a year for the government
• The threshold at which businesses start paying National Insurance on workers' earnings will be lowered from £9,100 to £5,000
• The main rate of corporate tax, paid by businesses on taxable profits over £250,000, is set to stay at 25% until the next election 

State Pension 

• As previously reported, the State Pension will rise in line with average earnings, going up by 4.1% in April 2025. This means:
• The full, new flat-rate state pension (for those who reached state pension age after April 2016) is expected to increase to £230.30 a week. That will take it to £11,975 a year, a rise of £473 compared with now
• The full, old basic state pension (for those who reached state pension age before April 2016) is expected to go up to £176.45 a week. That will take it to £9,175 a year, a rise of £361 compared with now

Transport

• The bus far cap in England has been increased from £2 to £3 until December 2025
• 5p cut to fuel duty on petrol and diesel, due to end in April 2025, kept for another year
• Air Passenger Duty will rise, adding up to £2 to the cost of an economy ticket for a short-haul fight
• Private jet users will be hit by a 50% hike in Air Passenger Duty 
• £500m increase in road maintenance budget to tackle potholes

School and Education 

• VAT Introduced on private school fees from January 2025 

Smoking and Alcohol 

• Tax on non-draught alcoholic drinks to increase by the higher RPI measure of inflation, but tax on draught drinks cut by 1.7%
• Tax on tobacco will increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco
• New tax of £2.20 per 10ml of vaping liquid introduced from October 2026 

McCrea Financial Services is Authorised and Regulated by the Financial Conduct Authority.