LIVE: The Budget - 2p cut to National Insurance

11:02 Pension consolidation 

Managing partner of Senior Capital, Rudy Khaitan, commented, “Chancellor Jeremy Hunt’s plan to consolidate workplace pension schemes and allocate up to £75bn of retirement funds for investment in high growth segments represents a strategic effort to stimulate the UK economy and generate better returns for pensioners. These reforms are expected to not only enhance retirement incomes by over £1,000 a year for typical earners but also drive substantial growth in the UK’s most promising companies.

"Our clients, primarily pension funds and insurers, require long-dated stable cash flows to match their liabilities which often extend to 15-20 years or more. The universe of assets that provide this duration but also meet the required risk-return thresholds is very limited."

10:53 Need to fill those gaps

Laura Miller, UK HR country lead at SD Worx commented: "For huge numbers of businesses finding and retaining the right talent is among their most difficult roadblocks. Stubborn skills gaps keep hitting businesses hard, particularly in critical areas like data, AI, cybersecurity and the cloud. In short, all the specialisms needed for modern business survival.  

To add to the challenges, businesses also find themselves grappling with hardened demands from workforces for flexibility, purpose and culture as well as inflation busting pay packets.  

It seems that there’s a mountain to climb in terms of transforming business at speed through tech without forgetting the personalisation and human factor we all still want in the workplace. We need to incentivise businesses to invest in the vital skills and resources needed to take the sting out of the skills gap problem. Times might be tough but to build resilience into the economy we need to really see fresh momentum and optimism behind business investment in this critical area.”  

10:00 Another cut to NI

The biggest budget changed leaked before the main event, is big news for the payrollers - it is yet another change to National Insurance!

It is believed the Chancellor will reveal a 2p cut in National Insurance. 

What payrollers will want clarification on is exactly when this cut will come in to place. The Chancellor broke protocol with his last cut in National Insurance in the Autumn Statement. Instead of waiting for the new financial year to start in April, the Chancellor made the change from 1 January.

12:26 Diversity initiative cuts

The Chancellor is also expected to direct local councils to curtail spending on diversity initiatives, amidst financial strain and some councils facing insolvency.

This move has sparked concerns from advocates who argue for the benefits of diversity and inclusion practices.

12.35 Budget underway

The Chancellor states that growth has been higher than every large UK economy and unemployment has halved in 14 years under the conservatives.

"lower taxes mean higher growth", he says.

12.38 Freeze on fuel and alcohol duty

The Chancellor states the average income is set to rise by 8.5%.

"There can be no solid growth without solid finances."

The Government is planning to support families and businesses by extending a freeze on the price of fuel duty and alcohol duty for 12 months.

12.47 Cost of living support

On the household fund the Chancellor says: "with the battle against inflation still not over now is not the time to stop the targeted help it offers."

He states it will continue at current levels for another six months.

12.50 Growth plans

"Economic growth not sustained by migration but one that raises wages."

12:55

The Chancellor announces an increase in the VAT registration threshold for businesses, raising it from £85,000 to £90,000 effective April 1st. He states this move will exempt tens of thousands of businesses from paying VAT, thereby encouraging them to channel those funds towards investing in growth and expansion.

13:00

The Chancellor states the UK is on track to becoming the world’s next Silicon Valley.

"I want the world’s tech entrepreneurs not just to start here but stay here."

Hunt announces more powers to the FCA and pensions regulator and says they are looking at building on reforms to unlock more pension capital and make it easier for pensions funds to invest in the UK.

Laura Miller, UK HR Country Lead at SD Worx says: "The working world needs a budget full of ambition to really get to grips with retraining and reskilling...We need to incentivise businesses to invest in the vital skills and resources needed to take the sting out of the skills gap problem."

13:05

Hunt says "British ISA which will allow an additional £5,000 annual investment for investments in UK equity with all the tax advantages of other ISAs. This will be on top of the existing ISA allowances and ensure that British savers can benefit from the growth of the most promising UK businesses."

13:09

"10 millions working age adults not in work... those who can work should." Hunt said.

13.14 Public services

Hunt references antiquated systems currently supporting NHS staff. He announces £3.4 billion pledge to fund the NHS productivity plan in full, which, he says, will slash 13 million hours lost by doctors and nurses to outdated IT systems.

13:22 Tax cuts

"keeping taxes down matters to conservatives in a way it never can for labour"

"If we want to encourage hard work we want to let people keep as much of their money as possible"

Hunt abolishes furnished holiday lettings regime, as well as stamp duty relief for people buying more than one dwelling. 

Property capital gains tax is reduced to 24%.

13:30

The government will abolish the current tax system for non-doms, replacing with a residency based system. 

13.34 National Insurance cut

"If we are to build a high wage high skilled economy not dependant on migration we need a simpler fairer tax system that makes work pay."

From April 6th Employee National Insurance will be reduced by a further 2p.