What does the budget really mean for you?

by Anna Birley from UNISON’s policy unit While goings on in Westminster can feel a long way from normal day-to-day life, the decisions made at the budget by the chancellor have a huge impact on everybody’s work, household finances and the public services we all rely on. This week’s budget was no different, so let’s break down what the budget means for you and the services you rely on, along with some helpful myth-busting on the way. What’s happening with my taxes? The biggest headline, which was trailed days before the formal announcement, was the 2p cut in National Insurance. At first glance, this seems positive – after all, National Insurance is a tax specifically on working people. However, in practice, this small cut hides a much more troubling picture. At a cost of £10bn, this is a very expensive way to put money back into the pockets of higher income workers. While the government suggests that it will be worth £450 for the average worker, what this actually means is just £34 back each year for low-income workers, compared to £424 a year for the richest households. This means almost half of the £10bn spent will end up in the pockets of the richest 20% of households and only 3% will benefit the poorest 20%. On top of this, other, stealth taxes – measures that were not mentioned in the chancellor’s budget speech but will have a huge impact on household budgets – are more than cancelling out the National Insurance cut. The personal allowan...
Source: UNISON meat hygiene - Category: Food Science Authors: Tags: Article News budget General election 2024 national insurance Tax Source Type: news