Autumn Budget 2024: when is it and what will it contain?
Chancellor of the Exchequer Rachel Reeves has set the date of the new government's first Budget for Wednesday 30 October and rumours are already swirling about what changes will be made to plug a £22bn black hole in the government's accounts.
In a public address on 27 August, Prime Minister Keir Starmer confirmed the fiscal plan is 'going to be painful' and said that those with the broadest shoulders 'should bear the heavier burden'.
Some areas where the axe will fall have already been announced - such as scrapping the Winter Fuel Payment to the 10 million pensioners not in receipt of means-tested benefits. But talk of tax rises has intensified recently, despite the government pledging not to put up income tax or National Insurance rates.
Here, Which? sets out what's been announced so far and what else could be unveiled in the Autumn Budget next month.
What changes do we already know about?
These are the money announcements made by the Chancellor on 29 July:
Winter Fuel Payment to be means-tested
The universal Winter Fuel Payment is worth up to £300 and currently paid to anyone receiving the state pension to help with heating bills.
But Reeves has said the support will be limited to those who receive pension credit or other means-tested benefits this winter.
This means millions of pensioners will lose their payment as part of an immediate cut aimed at raising £1.4bn.
The government says an estimated 880,000 households are missing out on pension credit, and are encouraging people to check their eligibility and make a claim.
- Find out more: Winter Fuel Payments scrapped unless you're on benefits: here's how to get help with energy bills
Adult social care cap shelved
A plan by the previous Conservative government to cap how much people have to pay for adult social care from October 2025 will be shelved.
Reeves claims this will save the government more than £1bn by the end of next year.
- Find out more: care cap costs axed: how can you bring costs down?
Autumn Budget rumours: what changes could be announced on 30 October?
These are some of the rumours circulating about other announcements that could be made by the Chancellor later this year.
Capital gains tax hike
With Labour pledging not to fiddle with income tax or National Insurance rates, the Autumn Budget may include changes to capital gains tax (CGT). CGT is charged on the profits you make from selling an asset, such as a second property or valuable possession.
The i newspaper reports that Reeves is considering increasing CGT rates to match those of income tax. The highest CGT rate is 28%, compared to the top income tax rate of 45%.
The Institute for Fiscal Studies (IFS) claims such a move would raise £16.7bn a year for the government. A study by the Resolution Foundation also found that equalising CGT rates on shares with dividend rates could raise an extra £7.5bn a year.
- Find out more: capital gains tax rates
Closing inheritance tax loopholes
IHT is a 40% tax charged on anything over £325,000 in your estate. However, the most recent HMRC statistics show less than 4% of estates paid it in 2020–21.
Reeves may therefore be tempted to make changes to IHT, with the Resolution Foundation suggesting she could decide to end some of the generous reliefs which mean people can legitimately reduce the bill for family members and friends.
For example, a report by the IFS in April 2024 found the government could raise £1.4bn a year simply by abolishing the business and agricultural property reliefs, used by those passing on family farms and firms.
- Find out more: what is inheritance tax?
Pension tax relief
A two-stage pensions review has already been launched by the Chancellor and she could announce changes to the rules on pension tax relief too.
Currently, savers that contribute to their pension pot get tax relief on any money put in. It's effectively a refund and is linked to the rate at which you pay income tax. So basic-rate taxpayers get 20% back, while higher and additional-rate taxpayers are entitled to 40% and 45% respectively.
But scrapping tax relief for higher and additional-rate taxpayers could help the government raise billions. Estimates from the Institute for Fiscal Studies suggest imposing a flat rate of 30% for everyone could generate £2.7bn annually.
- Find out more: tax relief on pensions explained
Council tax reform
Another area rumoured to be in line for a shake-up is council tax.
Speaking in the House of Commons on 2 September, Deputy Prime Minister Angela Rayner confirmed there are 'no plans' to raise current rates. There is talk, however, of cuts to council tax discounts.
When pressed on whether she will make changes to the single-person discount, which reduces council tax bills by 25% for taxpayers who live alone, Rayner - who is also the Secretary of State for Housing, Communities and Local Government - refused to commit to keeping it in place.
There is also speculation that the government will overhaul the current 'band' system and replace it with a flat 0.5% tax based on the value of a home.
If that were to happen, it would mean some houses might see council tax bills fall, while others would rise. For example, current Nationwide Price Index data shows residents in London, where the average home costs £525,248, could theoretically end up paying much more (£2,626) than someone living in the same type of property in the North of England, where an average £158,467 home could mean a £792 annual council tax bill.
- Find out more: what's happening to house prices?
Crackdown on spiralling insurance costs
The government pledged to tackle the problem of soaring car insurance premiums in its election manifesto and more details could be included in the Autumn Budget.
Transport secretary Louise Haigh reiterated Labour's commitment to the issue in an interview with the Mail on Sunday on 4 August. She said the government is 'determined' to take action and added: ‘Car insurance isn’t a luxury – it’s a legal requirement and an essential for millions.’
It comes after the latest figures from the Association of British Insurers showed that despite car insurance premiums falling for the first time in two years, prices remain much higher than this time in 2023.
Tax squeeze on drivers
The i newspaper reports that Reeves is considering hiking the rate of fuel duty – a tax charged per unit of fuel purchased which is included in the price paid for petrol, diesel and other fuels used in vehicles or for heating.
The rate has been frozen since 2011 and was cut temporarily by 5p in 2022. That reduction was extended by the Conservative government in the Spring Budget 2024, but according to the Financial Times the OBR has warned that keeping rates at their current level will cost the Treasury £15bn by 2029.
Another problem facing the government is dwindling revenue from fuel duty as a result of more people transitioning from traditionally-fuelled motors to zero-emission vehicles (ZEVs), such as electric cars.
To make up for future potential losses, the government could introduce a pay-per-mile scheme that charges drivers of ZEVs for how far they travel.
Under the plan, suggested by public transport charity Campaign for Better Transport (CBT), drivers with a ZEV before the implementation date would be exempt, incentivising the switch to electric motoring.
Social rent hike
According to the Financial Times, Reeves intends to increase annual rents on social housing in England by the Consumer Price Index (CPI) measure of inflation plus an extra 1% for the next decade.
The formula is currently in use to set social housing rents but the current settlement is only set to run until 2026.
The move is meant to encourage the development of more affordable homes by providing certainty over cash flows to housing associations and councils.
Changes to PIP eligibility
The i newspaper reports Labour will continue a consultation initiated by the Tory government to restrict personal independence payments (PIP).
PIP is a state benefit that helps people deal with some of the extra costs associated with long-term illness or disability and currently isn't means-tested, so it doesn't matter if you have a job or another source of income.
The consultation includes proposals to reduce the number of PIP claimants by altering eligibility criteria and assessment processes, as well as potentially replacing the current cash-based system with vouchers.
While Labour has yet to confirm if it will proceed with these specific proposals, The i notes that it is anticipated the government will explore measures to address rising welfare costs in the near future.
- Find out more: PIP benefits explained
British Isa plan to be scrapped
The British Isa was unveiled in the Spring Budget earlier this year, offering investors in UK-only stocks and shares an extra £5,000 tax-free annual allowance, on top of the existing £20,000.
But those plans will now be torn up, according to a report by the Financial Times. The newspaper quotes a government source who claims the product was dropped because of fears it would 'complicate' the market.
Rumours of the move have been welcomed by many investment platforms. Shaun Moore, tax and financial planning expert at Quilter, says Isas are already a confusing area of personal finance for many and this new addition would have 'further muddied the waters'.
The Treasury says no final decision had been made, and told Which?: 'The government will provide further information on its plans for the British Isa in due course.'
Right to Buy rules tightened
The government is planning to slash discounts for council tenants who want to purchase their own home through the Right to Buy scheme, reports The Times. The aim is to slow the sell-off of social housing.
Other restrictions that are reportedly being considered include requiring tenants to have lived longer in their homes before they qualify for the scheme and limiting Right to Buy to newly built council houses only.
This story was first published on 29 July and has been updated since then as we've learned more about what the Autumn Budget might contain. The last update was on 6 September.
