On 17 July, the State Opening of Parliament took place, with the King’s Speech laying out the government’s legislative agenda for the upcoming parliamentary session. While there was a mention of the proposal to remove the VAT exemption for private school fees—a topic we have previously covered in this newsletter—there was scant detail on other tax measures that could impact businesses and individuals.
For those keenly watching the tax landscape, the King’s Speech might have felt underwhelming. However, the real anticipation now shifts to the Labour government’s first budget, scheduled for 30 October 2024. This budget is expected to be a significant event, potentially unveiling a range of new tax policies and changes that could affect various sectors and individuals alike.
What to Expect from the Labour Government’s First Budget
- Business Taxation: Businesses are particularly interested in any proposed changes to corporate tax rates, reliefs, and incentives. The budget may introduce new policies aimed at fostering innovation, supporting small businesses, or addressing economic challenges.
- Personal Taxation: Individuals will be looking out for changes in income tax bands, allowances, and other personal tax reliefs. Any adjustments here could impact take-home pay and disposable income.
- VAT and Indirect Taxes: Beyond the already mentioned proposal to remove the VAT exemption for private school fees, there could be further changes to VAT rates and other indirect taxes. These changes can influence consumer prices and business costs.
- Environmental Taxes: With growing emphasis on sustainability, new or increased environmental taxes could be introduced. These might target areas such as carbon emissions, plastic use, and other environmental concerns.
- Housing and Property Taxes: Potential changes to stamp duty, inheritance tax, or other property-related taxes could significantly affect the real estate market and homeowners.
Why This Budget Matters
The 30 October 2024 budget will be closely watched as it will offer the first comprehensive look at the Labour government’s fiscal priorities and strategies. Businesses and individuals alike will need to understand and prepare for any changes that could impact their financial planning and operations.
Stay Informed
As always, we will provide detailed analysis and updates following the budget announcement. Stay tuned to our newsletter for the latest insights and advice on navigating the new tax landscape. Mark your calendars for 30 October 2024, and be ready for what promises to be a pivotal moment in UK fiscal policy.
By staying informed and proactive, you can ensure that you are well-prepared for any changes that come your way.