Spring Budget confirmed for 6th March

The Office for Budget Responsibility (OBR) has been tasked with preparing fiscal and economic forecasts ahead of the Spring Budget, with the UK Government expected to lay out its proposals to bolster the UK’s economy and public finances for the 2024-25 financial year.

This year’s Spring Budget is also expected to be an integral milestone in the build-up to an election year in the UK.

Tax cuts could be on the Chancellor’s agenda in an attempt to give the voting public a boost to their coffers before heading to the polling stations.

What’s likely to be included in the Spring Budget 2024?

Increasing house prices and a freeze on inheritance tax thresholds is expected to push more taxpayers into paying inheritance tax on estates.

It’s possible the Government could look to reform or even scrap inheritance tax altogether. Reforms could include an expansion of tax-free thresholds, while scrapping it would attempt to gain favour with the Conservatives’ traditional voters.

During his Conservative leadership campaign in 2022, Rishi Sunak pledged to cut the basic rate of income tax. Income tax may come into focus in the Spring Budget 2024, although some suggest an increase to the personal income tax allowance may be fairer than a basic rate cut.

The Chancellor could also reconsider plans to further halve the dividend tax and capital gains tax-free thresholds, since further cuts would seem at odds with the Government’s growth agenda.

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Date published 8 Jan 2024 | Last updated 20 Mar 2024

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