A summary of how the Autumn Budget 2024 affects Northern Ireland businesses.
The Chancellor, Rachel Reeves, delivered the Autumn Budget on Wednesday 30 October 2024. Find a summary of the key announcements to understand their potential impact on your business.
Forecasts
Growth forecast
- 1.1% in 2024
- 2.0% in 2025
- 1.8% in 2026
- 1.5% in 2027
- 1.5% in 2028
- 1.6% in 2029
Debt Forecast
- 98.4% of GDP in 2024-25
- 96.9% of GDP in 2025-26
- 97.0% of GDP in 2026-27
- 97.2% of GDP in 2027-28
- 97.3% of GDP in 2028-29
- 97.1% of GDP in 2029-30
Borrowing forecast
- 4.5% of GDP in 2024-25
- 3.6% of GDP in 2025-26
- 2.9% of GDP in 2026-27
- 2.3% of GDP in 2027-28
- 2.2% of GDP in 2028-29
- 2.1% of GDP in 2029-30
Northern Ireland-specific announcements
The NI Executive will receive an additional £1.5 billion through the Barnett formula in 2025-26.
Investment in the Mid South West and Causeway Coast and Glens City Deals will continue and will deliver a combined investment from the UK Government of £162 million over 15 years to rural areas in Northern Ireland.
The UK Government reaffirmed its commitment to develop an Enhanced Investment Zone in Northern Ireland. It will work with the Northern Ireland Executive to develop proposals.
Under-served parts of Northern Ireland will benefit from the rollout of digital infrastructure enabled by over £500 million of UK-wide investment in Project Gigabit and the Shared Rural Network.
Starting April 1, 2025, the UK government will implement a 45%/40% tax relief for businesses in the cultural sector, including theatres, orchestras, museums, and galleries.
Minimum wage
The minimum wage rates, including the National Minimum Wage and National Living Wage, will increase from 1 April 2025 as follows:
| Minimum wage rate | New rate | Increase | Percentage increase |
|---|---|---|---|
| National Living Wage (21 and over) | £12.21 | £0.77 | 6.7% |
| 18-20-year-old rate | £10.00 | £1.40 | 16.3% |
| 16-17-year-old rate | £7.55 | £1.15 | 18.0% |
| Apprentice rate | £7.55 | £1.15 | 18.0% |
| Accommodation offset | £10.66 | £0.67 | 6.7% |
See minimum wage rates increase from 1 April 2025 and current National Minimum Wage and National Living Wage rates.
Taxes
National Insurance
Employer National Insurance Contributions (NICs) will increase by 1.2%, to 15% from 6 April 2025.
The Secondary Threshold – the level at which employers become liable to pay national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
The Employment Allowance will also be increased from £5,000 to £10,500 and the £100,000 threshold will be removed.
Income tax
The income tax and National Insurance thresholds freeze will not be extended beyond 2027-28. From 2028-29, personal tax thresholds will be uprated in line with inflation.
Capital Gains Tax
Capital Gains Tax (CGT) will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate. Rates on additional property sales will remain the same.
Capital Gains Tax rates for Business Asset Disposal Relief and Investors’ Relief will rise gradually to 14% from 6 April 2025 and match the main lower rate of 18% from 6 April 2026.
Inheritance Tax
The freeze on Inheritance Tax will be extended beyond 2028 to 2030, meaning the first £325,000 of any estate can be inherited tax-free, rising to £500,000 if a residence is included.
The government will legislate to extend the scope of Agricultural Property Relief from Inheritance Tax to environmental land management from 6 April 2025.
Corporation Tax
The main rate of Corporation Tax, paid by businesses on taxable profits over £250,000, will remain at 25% for the duration of this Parliament.
Duties
Fuel Duty
Fuel Duty will be frozen at current levels for one year. The existing 5p cut will be extended for 12 months and the planned increase in line with inflation for 2025-26 will be cancelled.
Alcohol Duty
Alcohol Duty on draught products will be cut by 1.7%, the equivalent of a 1p cut in the price of a pint, from February 2025.
Alcohol Duty on non-draught products will increase in line with Retail Price Index (RPI) inflation from February 2025.
Tobacco Duty
The government will renew the Tobacco Duty escalator of RPI +2% for the remainder of this Parliament and will increase duty by a further 10% on hand-rolling tobacco this year. These changes will apply at 6pm on 30 October 2024.
From 1 October 2026, a new Vaping Products Duty will be introduced at a flat rate of £2.20 per 10ml vaping liquid.
Air Passenger Duty
Air Passenger Duty on flights by private jet to increase by 50%.
Pensions
The basic state pension (for those who reached the state pension age before April 2026) and the new state pension (for those who reached the state pension age after April 2026) will increase by 4.1% in 2025-26.
Carer’s Allowance
The Carer’s Allowance Weekly Earnings Limit will be increased to the equivalent of 16 hours at the National Living Wage, meaning eligible workers can earn £10,000 per year whilst receiving the allowance.
Business rates
There were some announcements on business rates, but these don’t apply to Northern Ireland as business rates are the responsibility of the NI Executive.
Further details on the Autumn Budget 2024
See full details and accompanying HM Treasury documentation for the Autumn Budget 2024
