On Wednesday 6th March 2024, Jeremy Hunt, Chancellor of the Exchequer, announced the UK Government’s latest annual Spring Budget.
Following years of austerity measures and the ongoing cost of living crisis, 2024 could see a potentially disastrous General Election for the Conservative Party after falling behind in recent polls. As a result, many were expecting announcements that would help foster confidence in a last-ditch attempt to sway voters in their direction.
Also, recent reports showed that the UK economy went into recession at the end of 2023. With this in mind, nationwide economic growth during 2024 will be key for the Conservatives going forward - but it will be no small feat.
Here are our takeaways from the Spring Budget.
National Insurance cuts
There was, of course, the widely trailed 2p cut in National Insurance which helps some, but doesn’t offset the freezing of the personal allowance for many. Overall incomes will be the same as they were in 2019 – 5 years of no increase in people’s standard of living. Meanwhile, public services that so many rely on have been forced to do the best they can with less and less real funding.
Universal Credit aid
There is relief for some of our members in the change to the repayment rate for loans from Universal Credit which has been doubled, reducing the amount deducted each month for Universal Credit loans, although at the cost of the repayments lasting for much longer. Likewise making Debt Relief Orders free will help many low-income households with problem debts to get the support they need.
British ISA introduction
The new British ISA is an interesting idea, but can only be invested in equities, so it’s unlikely to be of interest to many who value cash savings.
Support for childcare
Finally the government generously ‘guaranteed’ the rates to be paid for childcare providers to support the rollout of free childcare, but those rates are widely acknowledged to be too low for many providers, leaving many struggling and more closing all the time.
ConclusionUltimately, the updates in the Spring Budget will only go so far in helping to alleviate the financial situation of so many across the UK. We understand that things will still be difficult for millions of people across our region and we are here to help provide financial support to anyone who needs it.
For almost 25 years, we have been committed to our mission of making the community we serve better off with the help of our ethical, affordable and fair loan and saving services.
If you would like to reach out to a member of our team to find out how we can assist your situation, email us at info@gwcu.org.uk or visit https://greatwesterncu.org.
