{"id":10868,"date":"2024-10-30T10:32:12","date_gmt":"2024-10-30T10:32:12","guid":{"rendered":"https:\/\/hamiltoncourtfx.com\/?p=10868"},"modified":"2024-10-30T11:44:59","modified_gmt":"2024-10-30T11:44:59","slug":"the-budget-awaits","status":"publish","type":"post","link":"https:\/\/hamiltoncourtfx.com\/es\/the-budget-awaits\/","title":{"rendered":"The Budget Awaits…"},"content":{"rendered":"
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Word of the Week Wednesday<\/strong><\/p>\n

Budget: An interesting article on the history and use of the term ‘budget’ can be found on the BBC link: The Vocabularist: Where does the word ‘budget’ come from? – BBC News<\/a><\/p>\n<\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n

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Shortly after noon today, attention will turn to the dispatch box for the release of the Chancellor\u2019s budget.<\/p>\n

Against a backdrop of the Government claiming that they inherited a \u00a322bn \u201cblack hole\u201d in the nations finances, its widely expected that Rachel Reeves will announce a string of fiscal tightening measures.<\/p>\n

This afternoon\u2019s Budget comes just months after Sir Keir Starmer warned from the Rose Garden of Downing Street that \u201cthere is a budget coming in October, and it is going to be painful\u201d.<\/p>\n

Over the last few weeks, headlines have centred on how No.11 are understood to be looking to save some \u00a340bn through a combination of spending cuts and tax rises. With the tax burden estimated to be around 36%, such measures could increase this level to 38% – its highest level in modern day peacetime Britian \u2013 according to the IFS.<\/p>\n

In the run up to today\u2019s budget, headlines have centred on expectations that Reeves may look to increase employer\u2019s contributions to National Insurance, alongside increasing tax on capital gains, inheritance, and pensions.<\/p>\n

Regarding NI, presently, employers pay NI at 13.8% on employees earnings above \u00a3175 per week, however its expected that this level could raise followings today\u2019s announcement. Some have also speculated that the government may be looking to reduce the amount of tax relief that can be claimed when paying or back paying into a pension pot.<\/p>\n

Labour have also said that they would raise \u00a38bn through taxing private school fees. According to the manifesto, the revenue from applying VAT and business rates to private schools will amount to just over \u00a31.5bn by FY 2028\/29, tough critics say that revenues could fall as families leave the private school education system.<\/p>\n <\/div>\n

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Capital Gains Tax is also expected to rise, with The Guardian reporting earlier this month that Treasury officials were modelling a potential rise of the tax within a range of 33% to 39%. Its estimated some 350,000 people pay CGT each year, contributing about \u00a315bn to The Treasury.<\/p>\n

Others have also forecast a possible increase in fuel duty \u2013 a tax which is currently at 52.95 pence per litre and has not risen for 12 years. Segueing to energy, the energy profits levy is also expected to rise from 35% to 38% at the start of next month.<\/p>\n

While it\u2019s expected that many Whitehall departments could face spending cuts, The Telegraph are reporting that Reeves will provide the MOD with a funding boost of almost \u00a33 billion. Alongside the existing budget, such spending would mean that the defence spending equates to around 2.3% of GNI, falling shy of Rishi Sunak\u2019s pledge earlier this year to get defence spending to 2.5%.<\/p>\n

The National Living Wage for those over 21 is expected to rise 6.7% next April to \u00a312.21, while those under 18 will see a 16% rise. Money is also expected to be put towards rebuilding schools across the country while other funds will be allocated for new equipment for the NHS.<\/p>\n

Elsewhere, some more clarity may also be given on the Chancellors\u2019 changes to nation\u2019s self-imposed debt rules. Under the new method, financial assets and liabilities, like student loans, stakes in private companies and pension schemes are set to be included in the way that debt is measured. Reeves hopes that such changes could release up to \u00a350bn for spending on infrastructure.<\/p>\n

With an aide in Reeves\u2019 team saying that today\u2019s announcement marks a \u201conce in a generation\u201d budget, all eyes remain on Westminster and the subsequent market reaction.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

Shortly after noon today, attention will turn to the dispatch box for the release of the Chancellor\u2019s budget.<\/p>","protected":false},"author":15,"featured_media":2438,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"rp-language":[16],"class_list":["post-10868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-morning-updates","rp-language-en_gb"],"_links":{"self":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts\/10868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/comments?post=10868"}],"version-history":[{"count":4,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts\/10868\/revisions"}],"predecessor-version":[{"id":10872,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts\/10868\/revisions\/10872"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/media\/2438"}],"wp:attachment":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/media?parent=10868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/categories?post=10868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/tags?post=10868"},{"taxonomy":"rp-language","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/rp-language?post=10868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}