As we edge closer to the unveiling of the 2024 Autumn Budget, business leaders and consumers are eagerly awaiting what could be one of the most pivotal financial statements in recent years. The stakes are high as Chancellor Rachel Reeves prepares her first budget under the Labour government, tackling significant economic challenges in a period of political and fiscal uncertainty. With the future of taxes, spending, and the UK's economic growth all on the table, there’s much to anticipate—and even more to dissect. Read more below to find out what Atticus Partners’ take is on the upcoming budget:
Ahead of the 2024 Autumn Budget, several key tax changes are anticipated as Chancellor of the Exchequer Rachel Reeves prepares her first budget under the Labour government. Reeves has spent much of her time in the role warning all that the British fiscal position is challenging with difficult decisions ahead. This has created an air of uncertainty for many businesses unsure with what is to come.
Reeves is likely to focus on closing the UK's £22 billion deficit that Labour have claimed to have found upon taking office. This means the Budget is unlikely to be a joyous affair, with more taxes needing to be levied and possible further spending cuts to balance the books.
Reeves finds herself in a tight spot. She claims to have discovered a £22 billion deficit hidden by her predecessors and both tax increases and spending cuts will be under consideration if she is to balance the books while staying within her own fiscal rules. These difficult decisions are unlikely to be popular and bring an end to any sense of a honeymoon period after just a few months in office.
Having set herself tight parameters during the election campaign, promising not to raise income tax, national insurance or VAT, opting for measures that will promote growth will be high on her priority list.
One area where Reeve’s sees hope for boosting UK GDP is through securing closer ties with the EU in an effort to ease trade barriers and expand areas for cooperation. This was reiterated in Prime Minister Keir Starmer and President of the European Commission Ursula von der Leyen’s recent joint statement.
The leaders agreed to cooperate to challenge “economic headwinds”, and the UK reaffirmed that they were committed to the current Trade and Cooperation Agreement (TCA). Despite the warm words however the UK is still not implementing the TCA in full and Starmer has constantly rebuffed the bloc’s young person movement scheme, seen by the EU as the first step to closer economic ties. Whether this can be overcome remains to be seen but the financial pressures of the Chancellor’s budget may help drive the new Prime Minister’s decision making.
Want to know more?
Contact Leon Cook, Founder at Atticus Partners: This email address is being protected from spambots. You need JavaScript enabled to view it.
Curious to learn more? Join us for an insightful session as we explore the in-depth details and analysis of Budget Day 2024! Uncover the economic impact, tax interpretations, and political implications, all in one comprehensive event. Don’t miss out on expert insights to help you stay informed on the latest developments.