Spring Budget 2024 - Predictions

Spring Budget 2024 Predictions: What To Expect

The Spring Budget 2024 announcements are out

Spring Budget 2024 Predictions that matter to employers and their people, helping you stay up to date ahead of the announcements.

The Spring Budget will take place on the 6th March 2024. The Spring Budget usually starts around 12.30pm, straight after Prime Minister’s Questions, and can be viewed on TV, YouTube or other participating streaming sites.

What could be announced during the Spring Budget 2024? People will be asking how the Spring Budget will affect them directly especially with the cost-of-living crisis. It’s worth keeping an eye on workplace and sector news as changing to manufacturing or retail industries, for example, can have a deep impact on employees and their staff.

Here’s some of the emerging Spring Budget 2024 predictions, we’ll share more as they arrive.

Check out confirmed payroll changes and HR legislation for 2024 and beyond

Income Tax Cut

With the general elections expected soon there is a lot of pressure on the prime minister Rishi Sunak and the Chancellor of the Exchequer Jeremy Hunt to cut income tax, with many Tory MPs calling for this.

However, despite the immediate benefits to UK workers this needs to be weighed against economic pressures, national debt and rising government costs.

“According to the Resolution Foundation, slashing income tax by just 1p would cost £7bn and would actually result in tax bills rising for anyone earning less than £38,000 a year if the freeze on personal allowance thresholds was maintained”

National Insurance Cut

The other main Spring Budget prediction is that the government might cut National Insurance (NI), by 1p, this is the cheaper option to the tune of around £4.5bn. There is a delicate balance between providing the public with extra reasons to vote for the current government at the next general election and balancing the books.

Looking for UK payroll services for your team? Explore more

Calls for support to tackle labour shortages in the Spring Budget 2024

The Confederation for British Industry (CBI) recently wrote a letter on the Spring Budget to the Chancellor directly to partition for several initiatives to support local businesses, citing that the key to the UK’s economic stability and success lies in the productivity and health of the UK workforce. Suggested changes include the expansion of non-taxable health support, sick leave recently reached a 10-year high which is taking its toll on organisational performance.

Workwell Speculation – Expansion to Help Older Workers

The number of inactive older workers has vastly increased since the pandemic, and according to the Golden Age Index over-55s are less likely to have returned to work compared with those in other G7 countries. Increasing incentives for older workers to return, employers to hire them and removing roadblocks will help businesses short on talent. NIC relief for employers targeting a specific group is an option, according to PwC, with another suggestion being extra support for skills development. From emerging tech and AI some older workers feel left behind, and development will help them.

Worried about finding great talent? Explore our recruitment services

Child benefit reform

The Confederation for British Industry (CBI) also spoke about the expanded eligibility for 30 hours of childcare, there have been talk of child benefit reform for a while which many feel unfairly effects single parents. Single parents on a higher income can in some cases go over the threshold compared to a two income family who earn less individually but more as a household in total, otherwise known as the Single Parent Wealth Penalty.

This would help parents create a better work-life balance and reduce financial stress.

Fuel duty cut

The increase is expected from the end of month after being frozen from 2011, this increase is likely to be unpopular but shelving it would cost another 2bn.

Employers who offer travel costs as part of their benefits package or as part of their payrolling of benefits will need to take this into consideration for their own forecasting, budgeting and payroll processing.

Support for Autistic People in the Workplace

A new report calls on employers to help support autistic people to start, stay and succeed in work. You can explore more in The Buckland Review of Autism Employment, and here’s a staggering quote from the government website. “Despite most autistic people wanting to work, just 3 in 10 are currently in employment due to stigma and lack of understanding of their needs.”

Our recent LinkedIn post shared some tips for supporting autistic people in the workplace.

As a result of this new report it’s possible we’ll see some announcements around this.

Personal Tax Thresholds Expected to Remain Frozen

People in England, Wales, and Northern Ireland pay the 20% basic rate of income tax on earnings over £12,571, the higher 40% rate over £50,271, and 45% on earnings over £125,140. Those thresholds are expected to remain frozen until 2028.

These used to rise every year in line with inflation. However the tax-free personal allowance, the amount you can earn every year before you have to pay income tax, has been frozen at £12,570 until 2028.

Further announcements

We’ll share further announcements as they land and reveal confirmed changes on the day so keep an eye on this page or contact us to sign up to our newsletter alerts to get employer news on this first.