Tax experts from RSM are predicting significant tax hikes and “tough decisions” in the upcoming Autumn Budget 2024.
With the Chancellor set to unveil new fiscal measures, businesses and individuals are bracing for changes that could have far-reaching implications for both growth and investment.
Paul Newman, Head of Industry at RSM, said: “After the jubilant post-election high, the government’s tone of optimism has wavered and talk of “tough” decisions in the forthcoming Autumn Budget now dominates.
“Tinkering with the fiscal rules to unlock £20bn will go some way to offset any “black holes” in the public finances, but tax increases will be needed to help fund key policy commitments to support the green economy; invest in key housing and infrastructure; and reform workers’ rights to “Make Work Pay”.
Paul also called for certainty and stability from Government so that businesses can ‘invest with confidence’.
He added: “Too much change and increased uncertainty could derail growth, impact productivity, and ultimately hinder the UK’s economic recovery and global competitiveness.”
Other predictions set out by RSM include:
- A change in fiscal rules to allow for more investment spending
- Tax increases of around £20bn
- Potential rate hikes for capital gains tax (CGT) and inheritance tax (IHT)
- CGT set to increase
- Changes to business asset disposal relief
- Carried interest reform
And, specifically for employers, RSM have predicted that:
- Wage costs will rise, with an increase in national living wage
- Sick pay to become a day-one right
- Potential NIC increases are on the horizon
Charlie Barnes, Head of Employment Law at RSM, added: “At the heart of the government’s Make Work Pay plan is delivering a ‘genuine living wage’, so we expect to see an uplift in the National Minimum Wage (NMW).
“The government previously confirmed it would benchmark NMW rates against the cost of living and introduce one rate for all working adults. That meant that a rate of £13 per hour could have been on the table for all working adults.”
Businesses interested in finding out how the budget will impact them are encouraged to book onto Staffordshire Chambers’ Post-Budget Breakfast event on Thursday, 31st October, hosted by RSM. Click here to find out more.
Read RSM’s budget predictions in full, here.
