Budget 2024: first Labor budget in 15 years of ‘mixed picture’

Budget 2024: first Labor budget in 15 years of ‘mixed picture’

“The UK’s Autumn Budget 2024 presents a mixed picture, with several key points combining support and criticism:

  1. Boosting health and education: A £4bn increase over the next two years will focus on the NHS and education system, which will deal with staffing and resources in the face of inflation. This focus on essential services was widely supported as necessary to counter pressure on public sector workers
  2. Green economy and energy reforms: The Government has committed £2.5bn to green energy projects in a move towards net zero emissions. While industry leaders are optimistic, some say it falls short of the rapid transition needed for sustainable energy independence.
  3. Stimulating business investment: Expanded tax incentives are expected to spur growth, particularly in the R&D and green technology sectors. The £1.3 billion allocated here is aimed at improving the UK’s innovation landscape. However, some economists believe that the budget lacks direct support for small businesses, which have been hit hard by rising operating costs.
  4. Personal income tax fix: The freeze on the tax threshold means that while low-income households will see modest relief, middle-income people could be squeezed by the “fiscal barrier.” Critics say this could increase the cost of living for the middle class, especially given inflationary pressures

In conclusion, the budget contains long-term investments, but concerns about immediate cost-of-living relief and support for small businesses.”

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