The Spring Budget was announced at the beginning of March. Below are some of the main highlights:
The Chancellor made further changes to National Insurance Contributions (NICs) following the cuts made in the Autumn Statement 2023. The rates for NICs will be cut by two percentage points for both employees and the self-employed from 6 April 2024.
This will see Class 1 employee NICs reduced from 10% to 8% from 6 April 2024, down from 12% at the end of last year. Meanwhile, Class 4 self-employed NICs are cut from 9% to 6% from 6 April 2024.
A few of the measures will benefit households that are struggling financially.
- The Household Support Fund will be extended until September.
- People receiving Universal Credit will now have twice as long to repay loans. The £90 fee for debt relief orders will also be scrapped.
- The threshold for child benefit will be increased. This will provide more resource and security for an estimated 170,000 families.
Announcements that are likely to benefit voluntary organisations include the following.
- The VAT registration threshold will increase from £85,000 to £90,000.
- £5m new investment in the Platinum Jubilee Village Halls Fund.
- Funding for community cultural projects and the National Theatre.
- Investment in early career researchers in medical charities.
However, disappointingly, the government has missed a critical opportunity to recognise the role the voluntary sector plays in our society, and back this up with spending and policy commitments.
The government has also refused to commit to an ‘essentials guarantee’ to support people receiving benefits. This guarantee would ensure universal credit covers essentials like food, household bills, and travel costs.
We’re relieved to hear planned funding for central government departments won’t be cut. However, this funding is still not enough to fund public services that meet communities’ needs. Local government finances are also under unprecedented pressure. Today’s announcements do nothing to address this.
Source: NCVO.org.uk
