Budget is 'last desperate act' of 'failed' Torys, Labour says (2024)

The Evening Standard’s live coverage of the Budget has ended.

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On Today's episode of The Standard podcast we explain everything you need to know about the 2024 Budget and how it affects you.

Chancellor Jeremy Hunt has come out swinging with billions of pounds of personal tax cuts to boost his party’s electoral hopes - and box in Labour and the Liberal Democrats.

The Standard’s Political Editor, Nicholas Cecil, discusses whether or not it’s a blockbuster Budget for the Conservatives, and if it’s enough to win over voters ahead of the upcoming general election.

ChancellorJeremy Huntannounced in his Budget speech that there will be a new tax on vapes in a bid to discourage non-smokersfrom taking up the habit.

Mr Hunttold the Commons he was confirming “the introduction of an excise duty onvapingproducts from October 2026 and publishing a consultation on its design”.

You can read more about the new measure here.

Former home secretary Suella Braverman said she regrets there was no cut to income tax in the Chancellor’s Budget because this would have helped a “broader range of taxpayer”.

Ms Braverman told the Commons: “My preference would have been a 2p cut off the basic rate of income tax and an increase in the personal allowance and a raising of the income tax threshold – to properly fix a tax regime, which has become, I’m sad to say, a disincentive to work and endeavour in too many cases.

“Cutting income tax rather than national insurance helps a broader range of taxpayer, including workers, savers and pensioners.”

The Conservative MP for Fareham added: “I do regret that income tax was not chosen as the tax to cut today over national insurance because pensioners have lost out as a result.”

The budget was full of measures that will make some people better off and some poorer.

So who will benefit most from Chancellor Jeremy Hunt’sBudget statement, and who is set to lose out?Read our analysis here.

The Government has "literally burned the house down" on public finances, Labour has said.

A spokesman for the party told reporters following the Budget: "We are under no illusions about how bad the inheritance will be if we are to win the next election.

"They have literally burned the house down when it comes to both the public finances and public services.

"The only long-term way of getting more money into our public services is by having a serious plan for growth."

Labour stands by its spending commitments that would have been funded by scrapping the non-dom tax status, but will "adapt" its plans "in due course".

A spokesman for the Labour Party said: "We stand by the commitments we have made on the NHS, for additional appointments, and for every primary school to have a breakfast club.

He added: "This is a humiliating U-turn, what the Government has done. Both Jeremy Hunt and Rishi Sunak have been repeatedly on the record opposing the reverse on non-doms, and if the Government had introduced those changes two years ago, when we first called for them, billions of pounds more would have been available for our public services, including the NHS.

"We will look at the Government's spending plans, we will adapt our funding plans accordingly, but let me be equally clear: everything in our manifesto will be fully funded, fully costed and we will set that out in due course.”

Chancellor Jeremy Hunt has said the Budget will "grow the economy" and deliver "better public services".

Speaking at a Selco Builders Warehouse in London on Wednesday afternoon, he said: "Well, this is a budget that will grow the economy.

"By delivering better public services, means people will have to wait less long to see a doctor, get their cancer scans back more quickly. And also brings down taxes which will fire up the economy."It puts £900 in someone on the average wage, if you combine it with the national insurance cuts in the autumn.

"And the choice when it comes to election is between a party that believes the way we get the economy going is to bring the taxes down, or the way that you get the economy going is to spend more, and Conservatives believe that lower tax economies are more dynamic, and that is the big choice that people have this year."

London Councils has said boroughs will face a shortfall of at least £400m in the coming year, brought about by skyrocketing demand for services, spiralling inflation, and many years of insufficient government funding.

Councillor Claire Holland, deputy chair of London Councils, said: “The relentless squeeze on borough finances looks set to continue.

“We’re pleased the Chancellor listened to the call made by councils and charities for an extension to the Household Support Fund.

“This fund enables us to provide vital assistance to low-income Londoners struggling with the cost of living.

“However, the extension is only for a further six months. This means less help for vulnerable residents just as the difficult winter months approach.

“Overall, we are left with little short-term relief and certainly no long-term solutions to the crisis in council finances.

“The fundamental factors driving this are the fast-rising levels of demand for services and the substantially reduced levels of resources available to us.

“Boroughs will continue to call for urgent reform of the local government funding system.”

Rishi Sunak was recused from policy talks on the scrapping of the non-dom tax status to avoid any conflict of interest arising from his wife being a non-domiciled resident, Downing Street has said.

A Number 10 spokesperson said: "There are established processes whereby arrangements can be put in place to mitigate against potential or perceived conflicts of interest.

"The Prime Minister was recused from all policy development and was only sighted on the policy once final decisions had been taken."