The winners and losers from Jeremy Hunt’s 2024 spring Budget

The chancellor has set out a national insurance tax cut and child benefit increase while increasing taxes on non-doms and holiday let owners

Millions of workers will benefit from an additional 2p cut in national insurance as Jeremy Hunt announced moves to ease the tax burden ahead of next year’s general election.

The Tory chancellor also confirmed another extension of fuel duty freeze - meaning motorists will continue to save on petrol prices.

But to raise the money for the raft of Tory tax cuts, the chancellor also announced a new levy on vaping and an abolition of the non-dom tax status.

The Independent takes a look at the big winners and losers from the chancellor’s Budget:

Winners:

Parents

Parents are set to benefit from today’s budget as Mr Hunt announced that the high-income child benefit charge threshold will be raised from £50,000 to £60,000 and the taper - which applies when an individual’s income increases beyond the threshold of £60,000, meaning they will gradually lose eligibility for child benefit - will extend up to £80,000.

He explained: “That means no one earning under £60,000 will pay the charge, taking 170,000 families out of paying it altogether. And because of the higher taper and threshold, nearly half a million families with children will save an average of around £1,300 next year.”

Motorists

In a move that many motorists will welcome, Mr Hunt has announced the government will spend £5bn to freeze fuel duty.

This will maintain a 5p cut in fuel tax – which was first announced in 2011-  that brought petrol prices down.

Workers

From April 6, Jeremy Hunt has announced a further 2p cut to National Insurance, on top of a previous cut announced in the Autumn Statement.

This tax cut will cost the government £10bn and will benefit workers who will see a reduction in contributions paid on their earnings.

But think tanks have warned that the 2p cut will result in thousands being plunged into poverty and say it could exacerbate financial inequalities since those families rely on the services funded by taxation.

Mr Hunt said this means an additional £450 a year for a typical employee.

Investors

Mr Hunt announced a plan for new British ISA, allowing £5,000 investments in UK firms as part of his plan to make the UK the world’s next Silicon Valley.

He said the move would “encourage more people to invest in UK assets”.

Researchers

The chancellor also announced a £360m research package to boost British manufacturing, which the chancellor said would boost manufacturing and research and development, including electric vehicles and pharmaceuticals.

Film-makers and creative industries

Fil and TV studios will have been handed a 40 per cent corporate tax relief, as Mr Hunt said the UK will be “second only to Hollywood” for film making.

The plan covers independent films shot in the UK that have a budget less than $19 million.

Chancellor Jeremy Hunt was delivered his Budget in parliament today (PA Wire)

Losers

Home buyers

There was little relief for homebuyers in the chancellor’s statement.

The Independent revealed earlier this year the Treasury was looking at helping those desperate to get on the property ladder by backing 99 per cent mortgages.

But the idea did not make the cut.

Non-doms

In a dramatic U-turn the chancellor announced plans to crackdown on the tax breaks for controversial non-doms in the Budget.

The tax loophole hit the headlines two years ago when it was revealed the prime minister’s wife was a non-dom, a person who lives in the UK but is not settled here permanently, meaning they only pay UK tax on money made in this country.

Mr Hunt had previously rejected calls to reform the rules, warning it would send high earners overseas.

But in the end he decided he needed the money the changes would rase.

Owners of holiday lets

The chancellor also unveiled a tax raid on the owners of short-term holiday lets. Higher taxes on second homes used as holiday lets are expected to raise hundreds of millions of pounds.

But the Conservatives have been warned the change will harm tourist hubs across the country.

Smokers

Bad news for smokers as the chancellor announced the introduction of a levy on vaping products from October 2026 in a bid to discourage non-smokers from taking up vaping.

He also announced that there will be an increase in tobacco duties.

Oil and gas companies

Chancellor Jeremy Hunt extended the Energy Profits Levy for an additional year, blaming the increase in energy prices caused by the Ukraine war.

The windfall tax applies to profits made from extracting UK oil and gas and in its first year the scheme brought the UK government an extra £2.6bn.

Rishi Sunak introduced the 25 per cent energy profits levy when he was chancellor to help fund cost-of-living support for UK families. That was increased to 35 per cent in January 2023.

Mr Hunt announced that extending the sunset on the Energy Profits Levy for an additional year to 2029 will raise £1.5 billion.