Response to 2024 Spring Budget

Chancellor of the Exchequer Jeremey Hunt announced his latest financial updates in this year’s Spring Budget Statement on Wednesday.

Key takeaways from his speech include National Insurance being cut from 10% to 8%, the freezing of the salary thresholds at which people pay income tax and National Insurance and the introduction of a new tax on vaping products.

There was also significant changes to child benefits, where now full benefits can be claimed if the highest-earning parent earns up to £60,000, increased from £50,000, and the announcement that the threshold at which small businesses must register to pay VAT will rise from £85,000 to £90,000.

Responding to the Chancellor’s Spring Budget statement, Carrie Sudbury, Chief Executive of Barnsley & Rotherham Chamber said: “The budget clearly recognised that the Government needs to do more to help businesses across the UK to prosper.

“Cuts to the headline National Insurance rates, the first increase in the VAT threshold since 2017, as well as new planned incentives to encourage business investment could all play their part in helping to stimulate Britain’s struggling economy.

“Further details were published today about the South Yorkshire Investment Zone, with plans announced to expand Rotherham’s Advanced Manufacturing park, as well as new schemes currently in development for Barnsley.

“The £50m investment will help to attract new high skilled jobs into the region, however, the Chancellor must recognise that in terms of output and productivity, South Yorkshire’s local economy continues to lag behind the national average and I would have liked to have seen more measures announced to help businesses in the region to overcome the many challenges they are currently facing.

“The freezing of alcohol duty, reduction in National Insurance, as well as increasing the VAT threshold are all likely to help some of the region’s smallest businesses, particularly those operating in the hospitality industry, whilst the decision to extend tax deductible incentives to businesses investing in research and development will help many to harness new and emerging technologies.”