Autumn Budget Report 2024

INTRODUCTION

Boxed in by Labour’s manifesto pledges not to increase income tax, employee’s national
insurance and VAT, Chancellor Rachel Reeves instead had to raid other taxes, like capital gains
tax (CGT), inheritance tax (IHT), employer’s national insurance and to extend the tax threshold
freeze to find the £40bn needed to balance the books.
While the tax rises came thick and fast, the Chancellor announced there would no longer be
biannual fiscal events. The Budget will now only be in the autumn, while the Spring Statement
will have no tax changes.
Reeves said the tax-and-spend Budget was necessary to reverse the dire state of the public
finances the Government inherited and to “fix the foundations to deliver change”.
“This Government was given a mandate to restore stability to our economy and to begin a
decade of national renewal, to fix the foundations and deliver change through responsible
leadership in the national interest. That is our task. And I know that we can achieve it,” said
Reeves at the start of her Budget statement.