Cornwall Welcomes Spring Budget 2024: A Turning Point for the Economy

In a significant announcement that could spell a brighter future for Cornwall and the rest of the UK, the Spring Budget 2024 has been unveiled, with measures aimed at alleviating the financial pressures on households and businesses. After years of economic challenges exacerbated by the COVID-19 pandemic, energy crises, and global inflation, the government’s latest financial plan promises a host of benefits for Cornwall’s residents.

Here’s what you need to know:

• Inflation and Economy Recovery: The government reports that inflation has more than halved from its peak, with the economy showing resilience, unexpected by earlier forecasts. This is good news for Cornwall, where families and businesses alike have felt the pinch of rising costs. The Office for Budget Responsibility (OBR) now predicts inflation will hit the target 2% by Q2 2024, bringing much-needed relief.
• Rising Living Standards: Thanks to falling inflation, real wages are on the up. The OBR expects real household disposable income per person to grow by 0.8% in 2023-24, meaning Cornwall’s families could find themselves around £1,100 better off than previously anticipated.
• Boost for Workers through NIC Cuts: The government is slashing National Insurance Contributions (NICs) for 29 million workers. For Cornwall, this means that the main rate of employee National Insurance will drop from 10% to 8% from April 6, 2024, saving the average worker over £900 a year. Self-employed individuals in Cornwall will also see significant savings, with main rate Class 4 NICs reduced from 9% to 6%.
• Support for Families and Cost of Living: To ease the cost of living, fuel duty rates will be maintained, saving the average car driver £50 in 2024-25. Alcohol duty freezes will also keep pint prices down. Furthermore, the High Income Child Benefit Charge threshold increase to £60,000 will benefit 170,000 families, including many in Cornwall, providing an average gain of £1,260 in 2024-25.
• Investment in Public Services and NHS: Cornwall will also benefit from the government’s commitment to increase day-to-day funding for the NHS in England by £2.5 billion in 2024-25. A comprehensive NHS productivity plan backed by £3.4 billion aims to improve services and reduce wait times, which will positively impact Cornwall’s healthcare access.
• Supporting Small Businesses and Creative Industries: Small businesses in Cornwall will welcome the increase in the VAT registration threshold from £85,000 to £90,000. Moreover, the creative sector in Cornwall is set to benefit from over £1 billion in new tax reliefs, including support for film studios and the introduction of a UK Independent Film Tax Credit.

This Spring Budget outlines a path to recovery and growth, with Cornwall poised to reap the benefits of these measures. By reducing inflation, cutting taxes for workers, and investing in public services, the government is aiming to create a more prosperous future for all.

To read the full Spring Budget click here.