The recent government budget introduces key changes affecting Nottinghamshire businesses. Read on to find out more.
New Government budget highlights include:
National Insurance
Employer NICs will increase by 1.2 percentage points to 15% and the threshold at which NICs start to be paid will be reduced from £9,100 per year currently to £5,000 per year. This will apply from the start of the next financial year, 6 April 2025.
National Minimum and Living Wage
The NLW will increase by 6.7% to £12.21 per hour from April next year with the NMW for 18-20 year olds increasing 16.3% to £10 per hour with the aim of closing the gap between the two and having a single adult minimum wage to be achieved ‘over time’.
Business rates
The Chancellor announced a permanent lower business rates multiplier for retail, hospitality and leisure properties of 40% down from the current temporary 75% which avoids a total cliff edge, but will still be a significant reduction on current relief levels
Alongside the Budget the Treasury has published a discussion paper on Business Rates reform with three objectives in mind: protecting the high street; encouraging investment; and creating a fairer system.
Air Passenger Duty
APD will increase by £2 for short-haul flights in economy, £12 for long-haul economy and further increases for premium classes.
Tourist charges
No changes to Visa fees, ETA costs etc were announced.
Alcohol Duty
Alcohol Duty in draught products below 8.5% ABV will be cut by 1.7% which equates to 1p in the pint. All other Alcohol Duty will increase in line with RPI from 1 February next year – that’s a 3.65% increase.
DCMS funding
The DCMS settlement will grow in real terms by 2.6% between this year and next. This extra funding will be used, in part, for increase the Grant-in-Aid for National Museums and Galleries to ‘help support their long-term sustainability.’
You can access the Treasury’s Red Book’ and associated Budget documents such as policy costings via https://www.gov.uk/government/publications/autumn-budget-2024
The Office of Budget Responsibility’s Economic and fiscal outlook document is available at https://obr.uk/efo/economic-and-fiscal-outlook-october-2024/.
More national news:
– Air Passenger Duty tipped to be hiked in the budget.
– Cutting-edge transport projects receive £1.4 million to encourage innovation and deliver growth.
Posted on 03 December 2024
