Latest budget facts

The UK government's recent budget, delivered by Chancellor Rachel Reeves, introduces several significant measures aimed at stimulating economic growth and supporting public services.

Key Highlights:

• National Living Wage Increase: Effective April 2025, the National Living Wage will rise from £11.44 to £12.21 per hour, benefiting approximately 3 million workers. This 6.7% increase equates to an additional £1,400 annually for a full-time employee.
  
• Taxation Changes: The budget includes a 2% reduction in National Insurance contributions, lowering the rate from 8% to 6% starting April 2025. Additionally, the threshold for small businesses to register for VAT has been increased from £85,000 to £90,000, effective April 2024.
  
• Public Spending: The National Health Service (NHS) is set to receive an additional £2.5 billion in 2025, with a total of £3.4 billion allocated up to 2030 to enhance productivity. Furthermore, the budget extends the government's cost of living fund for an additional six months to support households facing financial challenges.
  
• Economic Growth Forecast: The National Institute of Economic and Social Research (NIESR) projects the UK economy to grow by 1.5% in 2025, indicating a positive outlook for the upcoming year.
  

These measures reflect the government's commitment to fostering economic stability and supporting citizens through targeted fiscal policies.