Budget 2024 timeline and key dates as major cost of living measures announced

Labour has now delivered its first budget in 14 years and with it has announced a wide range of fresh economic policies. Chancellor Rachel Reeves highlighted that the aim of today's Budget was to bring in more change and put "more pounds in people's pockets".

Ms Reeves also highlighted the need to raise funds to plug a public "black hole" in finances worth £22bn. Because of this, changes to benefit and pension rates were introduced alongside significant changes to VAT rates for private schools, increased levies for the soft drinks industry, non-dom tax status and much more.

Ms Reeves told the Commons: “On July the 4th, the country voted for change. This Government was given a mandate: to restore stability to our country 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 we can achieve it.

“My belief in Britain burns brighter than ever and the prize on offer is immense. As the Prime Minister said on Monday, change must be felt: more pounds in people’s pockets, an NHS that is there when you need it, an economy that is growing, creating wealth and opportunity for all because that is the only way to improve living standards.

“And the only way to drive economic growth is to invest, invest, invest. There are no shortcuts and to deliver that investment we must restore economic stability and turn the page on the last 14 years.”

Read below for when you can expect the many changes announced today to come into place.

Budget 2024 timeline

October 2024

• Employment Allowance to increase from £5,000 to £10,500
• Increase in soft drinks industry levy to account for inflation and introduction of CPI duty each year going forward
• Surcharge on second homes to rise to 5 per cent from October 31
• Renewal of tobacco duty escalator plus increase duty by 10 per cent on hand-rolling tobacco

November 2024

• Second-home buyers to see stamp duty land tax surcharge rise to 5 per cent
• New interest rate decision on November 7

January to December 2025

• Alcohol duty rates on non-fraught products will increase in line with RPI from February 2025
• Renewal of tobacco duty escalator plus increase duty by 10 per cent on hand-rolling tobacco
• VAT on private school to be implemented alongside a removal of business rates relief from January 2025
• Fuel Duty tax to be frozen for the next year
• National Minimum wage to increase in April 2025 to £12.21 per hour
• Employer National Insurance Contribution to rise to 15 per cent from April 2025 alongside a threshold decrease at which it becomes payable to fall from £9,100 to £5,000
• Abolishment of non-dom regime from April 2025 to be replaced with a new residence scheme
• State Pension triple lock increase of 4.1 per cent in 2025
• Pension Credit increase of 4.1 per cent
• Carried interest rate to increase to 32 per cent (this is the share of profits of an investment paid to the investment manager)
• Employment Allowance to increase from £5,000 to £10,100
• Business rates for retail, hospitality, and leisure at 40 per cent to continue into 2026 with a cap of £110,000 per business
• An increase in the differential between fully electric and other vehicles in the first year rates of vehicle excise duty from April 2025
• An increase to Ministry of Defence budget of £2.9 billion in 2025
• Additional funding for local government in 2025 including £1.3bn of additional grant for "essential services"

January to December 2026

• Flat rate duty introduction on all vaping liquid from October 2026
• Planned reform on agricultural property relief and business property relief - from April 2026, the first £1 million of combined business and agricultural assets to attract no inheritance tax