Just now, the UK announced its Autumn Budget—raising taxes by £40 billion! Employer National Insurance, Capital Gains Tax, and Stamp Duty all increased!

【Answer 1】 According to forecasts, GDP growth will reach 1.1% in 2024, 2.0% in 2025, 1.8% in 2026, 1.5% in 2027, 1.5% in 2028, and 1.6% in 2029. She said: “This budget will permanently enhance the economy’s supply-side capacity and foster long-term growth.” On borrowing, Reeves stated the government will adhere to its “fiscal rules” as soon as possible—meaning that by 2027/28, the government will not borrow to fund day-to-day spending, and the budget will deliver a surplus. 2. Addressing Conservative Party Legacies The Labour Party will address legacies left by the Conservative Party, providing £11.8 billion in compensation to victims of the infected blood scandal and £1.8 billion to victims of the Post Office scandal. 3. Crackdown on Welfare Fraud To rigorously tackle fraud, Labour will publish a white paper titled “Get Britain Working”, aiming to help unemployed people return to work and ease pressure on the welfare system. New measures targeting tax avoidance will also be introduced. 4. Raising the Minimum Wage From next April, the National Living Wage for those aged 21 and over will rise by 6.7%, from £11.44 to £12.21 per hour. Additionally, the National Living Wage for 18–20-year-olds will increase from £8.60 to £10.00 per hour. Apprentices will receive the largest pay rise, with their hourly wage rising from £6.40 to £7.55. 5. Increasing Carer’s Allowance Reeves stated that carers’ earnings allowance will rise to the equivalent of 16 hours per week at the National Living Wage. Currently, individuals with additional caring responsibilities receive up to £81.90 per week through the “Carer’s Allowance”. 6. State Pension to Rise by 4.1% Next Year The State Pension will increase by 4.1% next year, meaning over 12 million pensioners will receive an extra £470—£275 more than if pensions had risen solely in line with inflation. The minimum guarantee for single pensioners will also rise by 4.1%, from around £11,400 annually to approximately £11,850. 7. Fuel Duty Freeze Fuel duty will remain frozen next year, maintaining the existing 5p reduction for another year—meaning no increase in fuel taxes at the pump. 8. Raising Employer National Insurance Reeves announced that employer National Insurance contributions will rise from 13.8% to 15%. Simultaneously, the earnings threshold at which employers begin paying National Insurance for workers will fall from £9,100 to £5,000. Reeves stated this measure will generate £25 billion annually by the end of the forecast period. However, Reeves confirmed she is increasing the Employment Allowance to support small businesses. The Employment Allowance will rise from £5,000 to £10,500—meaning 865,000 employers will pay no National Insurance next year, the Chancellor said. 9. Capital Gains Tax Both the lower and higher rates of Capital Gains Tax will increase: the lower rate will rise from 10% to 18%, and the higher rate from 20% to 24%. The Capital Gains Tax rates for residential property will remain broadly at 18% and 24%.

Just now, the UK announced its Spring Budget: National Insurance cuts | Lowering Capital Gains Tax | Scrapping tax relief for holiday lets | Raising the VAT threshold for small businesses

【Answer 2】 The fiscal deficit remains very high. The fiscal deficit—the gap between public spending and revenue from taxation and other sources—has declined from the peacetime record reached in 2020/21, yet it still exceeds the average level over the past 50 years. Borrowing for 2023/24 is projected to amount to 4.5% of GDP. Thus, balancing households’ tax burdens while increasing government revenue and reducing expenditure has become a key challenge facing the Chancellor of the Exchequer. Meanwhile, a general election is imminent. A UK general election is expected later this year, with all political parties actively campaigning and seeking voter support. Will this budget succeed in turning things around? Let’s take a closer look! Chancellor of the Exchequer Jeremy Hunt stated: Under Conservative leadership, UK economic growth has outperformed all major EU economies. Although we now face the most challenging economic headwinds in modern history, UK economic growth since 2010 under Conservative leadership has consistently exceeded that of all major European economies. Unemployment has halved; absolute poverty has been eradicated; and since the Conservatives took office, an average of 800 new jobs have been created daily. Our policies mean “more jobs, more investment, and lower taxes”. When I assumed office, UK inflation stood at 11%; the latest data shows it has fallen to 4%. OBR now forecasts growth of 0.8% this year and 1.9% next year—0.5 percentage points higher than its Autumn forecast—and expects this growth trend to continue through to 2027. According to IMF data, since 2010 our growth has outpaced Europe’s three largest economies—Germany, France, and Italy—and is projected to remain faster over the next five years. Business investment this year will account for 10.6% of UK GDP—and will continue rising. Companies investing in the UK include Nissan, Google, and Microsoft. Today, I am introducing further measures to stimulate investment. 1. National Insurance (NI) Cut From 1 April this year, National Insurance contributions will be cut by 2%, saving the average earner around £450 annually. 2. Alcohol Duty Freeze Extended Good news for drinkers: the Chancellor has frozen alcohol duty. Originally due to expire in August this year, the freeze has now been extended until February next year. 3. Fuel Duty Maintained at Current Rate Fuel duty will remain at its current level and be frozen for the next 12 months. He will also extend the “temporary” 5p cut in fuel duty, originally scheduled to end this month. 4. Extending Repayment Periods for New Loans Hunt stated: Tackling inflation, though necessary, has been painful—causing interest rate rises and a period of low growth. Over the past two years, the average household received £3,400 in cost-of-living support. To help people better afford emergency household loans, I am announcing that the repayment period for new loans will be extended from 12 to 24 months. 5. A New UK Individual Savings Account (ISA) The Chancellor stated: The UK government will launch a new UK Individual Savings Account—the “New British ISA”—and added that it will offer an additional £5,000 tax-free allowance for public investment in the UK.

UK Finance Minister Healey Extends Fuel Duty Freeze Until July

Oct 28, 2026

UK Finance Minister John Healey announced an extension of the fuel duty freeze until at least July, citing high oil prices driven by the Middle East conflict. The policy maintains a temporary 5p cut introduced in 2022 to support motorists.

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A £4 Billion Fuel Windfall Offers Hope For Struggling UK Drivers

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UK Finance Minister Healey Extends Fuel Duty Freeze Until July

UK Finance Minister Healey Extends Fuel Duty Freeze Until July

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