Displaying items by tag: budget

The UK’s largest tax increase since 1993 was announced as Rachel Reeves introduced a budget aimed at revitalising healthcare, education, and infrastructure. Taxes will rise by £40 billion, with employer national insurance contributions, capital gains tax, and VAT on private school fees among the primary targets. These funds, coupled with higher borrowing, aim to close a financial gap left by previous administrations, supporting the NHS, affordable housing, and transport projects. Reeves acknowledged the 'difficult decisions' required, defending these increases as essential to 'rebuild Britain' without directly impacting individual income tax, VAT, or national insurance. Critics argue, however, that these tax hikes may still burden working people indirectly. In response to Tory criticisms, Reeves insisted that Labour’s approach will prevent austerity and 'put more pounds in people’s pockets' while providing relief measures for small businesses and the retail, hospitality, and leisure sectors.

Amid fears of changes to tax-free ISAs in the upcoming Budget, Britons are rushing to maximise their savings in these accounts. Concerns stem from remarks by Rachel Reeves, who previously suggested a cap of £500,000 on tax-free ISAs, sparking fears that she might target ISAs for a tax raid. As a result, investments in stocks and shares ISAs have surged; one provider reported a 156% increase in contributions in September compared to the same period last year. The number of ISA millionaires has tripled in three years, with over three thousand holding more than £1 million in their ISAs, and thousands more nearing that figure. Analysts credit this growth to the power of compounding and investing in stocks and shares rather than just relying on cash ISAs. Proposed changes could reduce the £20,000 annual contribution limit or introduce a cap, worrying investors seeking to save for their future amid an increasingly taxed environment.

The Guardian reports that the Treasury has asked ministers to prepare for cuts of up to 10% in infrastructure spending, targeting projects such as hospital upgrades, road construction, and defence initiatives. Despite Chancellor Rachel Reeves' recent commitment to increased investment to stimulate growth, the government still faces a £22 billion financial shortfall. Economists warn that cutting capital investments could harm the economy and exacerbate the country's deteriorating public infrastructure. Reeves, set to deliver her first budget on 30 October, is expected to outline tax increases to fund public services, while also addressing departmental spending limits established before inflation and rising asylum costs worsened the deficit. However, some ministers argue that short-term cuts will hinder long-term economic progress.

Rachel Reeves is preparing to implement a tough October budget that includes tax increases, spending cuts, and stricter benefit policies. Despite stronger-than-expected economic growth in early 2024, she faces a significant budget deficit, with government borrowing reaching £3.1 billion last month, more than double the amount from the previous year. Reeves had already announced initial cuts, including the scrapping of winter fuel payments for most pensioners and halting plans for social care reform. The upcoming budget is expected to raise more revenue from inheritance and capital gains taxes, maintain a 1% increase in public spending with cuts in some departments, and uphold the two-child benefit cap. Despite improved economic performance, the Treasury insists that the financial situation remains dire, with borrowing on track to exceed forecasts. Reeves argues that she inherited the worst public finances since World War II, and further tough decisions are necessary to address the substantial 'black hole' in the budget.

In the 2024 Budget announcement, Chancellor Jeremy Hunt introduced tax cuts to bolster the Conservative Party's prospects. He reduced National Insurance by 2p, following an earlier cut in January. This move was labelled a "con" by Labour, suggesting it would disadvantage many. Significant changes in the Budget included raising child benefit thresholds, introducing a vaping levy, and eliminating non-dom tax status. Despite speculation, income tax was not reduced, but National Insurance for employees was lowered from 10% to 8%, and from 8% to 6% for the self-employed. Child benefit eligibility was expanded, affecting around 170,000 families. The chancellor claimed these NI changes would save an average employee earning £35,000, about £450 annually. Critics, including Labour and the Liberal Democrats, accused the Budget of being a weak attempt to cling to power, failing to effectively address public service issues, high taxes, and zero growth. Some Tories, including former ministers, expressed disappointment over the lack of income tax cuts. The Budget also announced extended support for cost-of-living pressures and a freeze on alcohol and fuel duties, while new taxes on vaping and tobacco were introduced. Public sector efficiency and technology investments, particularly in NHS IT systems, were highlighted as key initiatives.

The UK government plans to implement a new tax on vaping products starting October 2026, announced by Chancellor Jeremy Hunt during the Budget speech. This move aims to deter non-smokers from starting vaping while maintaining vaping as a cost-effective alternative for smokers wishing to quit. The tax's specific details will be determined through a consultation process. Currently subject to a 20% VAT but exempt from excise duty, vaping products will see this change with the new tax. Additionally, the government plans to increase tobacco duty as a one-off measure, ensuring vaping remains less expensive than smoking. This step aligns with the government's broader strategy, including proposed bans on disposable vapes and restrictions on vape flavours and packaging. However, the vaping tax has drawn criticism. Simon Clark from Forest, a smokers' advocacy group, called it counterproductive, and Christopher Snowdon of the Institute of Economic Affairs criticised it as a "cynical cash grab," detrimental to those who have switched from smoking to vaping.

NHS England leaders have responded positively to the £6bn budget increase from Chancellor Jeremy Hunt, aimed at addressing rising demands, tackling the care backlog, and upgrading outdated IT systems. The budget for 2024/25 will see a £2.5bn increase for day-to-day operations, raising the total to £164.9bn, slightly higher than this year's £163.2bn. Julian Hartley, CEO of NHS Providers, viewed the funding as a temporary relief from financial strains, while Matthew Taylor, chief of the NHS Confederation, felt the amount was insufficient to significantly improve the service. Additionally, £3.4bn over three years is allocated to enhance NHS productivity, with £2bn targeted at modernising inefficient IT systems. This investment is expected to save time and resources, potentially leading to £4bn savings over five years. The budget also includes £430m to improve patient access to care and reduce waiting lists, partially through enhanced use of the NHS App. However, adult social care remains underfunded, causing concern among organisations like the Association of Directors of Adult Social Services and Age UK. The budget also acknowledged the need for reform in children's residential care, setting aside £165m to curb profiteering. Yet, it falls short in addressing the housing crisis, with no substantial investment for new social homes and a capital gains tax cut that could negatively impact renters.

With the budget passed, the coalition has much to focus on apart from judicial reform. Pray for God’s priorities to be the government’s priorities, and ask God to show the various ministers how to work in unity as they deal with issues. Ask God to place the coalition's reins firmly in prime minister Netanyahu’s hands, and use his partners to keep him turning Israel onto a more biblical path, while removing any ungodly advisers from him. Ask God to anoint finance minister Smotrich to win the war against Israel's high cost of living and show every ministry how to reduce wasteful spending and increase the effectiveness of their budgets. May national security minister Ben-Gvir use the budget dedicated to reinforce and encourage Israel's police force to do just that - while also removing all unrighteousness from its ranks. And finally, ask God to help the housing industry to make affordable housing readily available. See

The chancellor pledged increasing public spending amid higher than expected economic growth. Whitehall departments will receive a rise of £150bn over the course of this parliament, the largest increase this century. There is extra money for schools, tax cuts for businesses and a cut in air duties for internal flights. A changed alcohol duty will see cheaper sparkling wine and draught beer, and the planned fuel duty rise is cancelled. Amid huge concern over the £20 cut to Universal Credit, changes will be made to let working claimants keep more of their benefits. There is new money for the NHS, a rise in the National Living Wage, and public sector pay rises. The Institute for Fiscal Studies said inflation and higher taxes on incomes would negate small wage increases for middle earners. Low-income households will see the cost of living increase faster than benefit payments. The chancellor acknowledged in his budget that families are under strain: see

Rishi Sunak has set out tax and spending plans to help business and people through the pandemic and support long-term economic recovery. Although the economy shrank by 10% in 2020, it is forecast to rebound in 2021, with projected growth of 4% and a return to pre-Covid levels by the middle of 2022. Pray that these projections will be met or exceeded, and the Government’s actions will fulfil the promises of recovery for those remaining on furlough. Pray for easy access to the promised increased Working Tax Credit and Universal Credit for those in need. May the budget bring relief to the 700,000 unemployed. We can thank Him for £1.65bn to support vaccination rollout and £19m for domestic violence programmes and networks of respite rooms for homeless women. However, the shock of coronavirus on our economy won't be fixed overnight. May God give our Government wise strategies progressively to reduce debt.