The October 2024 Budget reflects significant steps to reshape the UK’s fiscal landscape, with notable implications for education, benefits, economic stability, and transport, yet there remains a glaring omission: any dedicated focus on climate change investment and a just transition toward sustainability. This absence speaks volumes, particularly given the urgent demands of COP29. #OBR

Twitter Thread – https://x.com/Iam_Claude25/status/1851632430685237344?t=t7PIYBPqjpvmDCOyEecCtg&s=19

Schools & Education
The budget increases funding for free school breakfast clubs to £30 million by 2026 and allocates an additional £2.3 billion for school budgets next year, which is crucial for improving educational resources. Additionally, £1 billion for children with special educational needs (SEN) marks a positive step toward inclusive education. However, while these commitments benefit the day-to-day running of schools, they fall short of addressing long-term systemic improvements, especially those aligning education with sustainable development goals and preparing youth for a green economy.

Link – https://www.instagram.com/p/DBwJ9BWI3OI/?igsh=MXVob3ByOGRwZTc0eQ==

Benefits
The budget takes some strides toward social justice with increased funding of £240 million for health and employment services targeting disabled individuals and the long-term sick. The Household Support Fund expansion of £1 billion is also commendable, offering relief to those struggling with essentials. However, raising benefits alone without embedding sustainability in welfare reform limits the potential for transformative change.

The uplift in the Carers Allowance threshold and the increase in the minimum wage for workers aged 21 and over (6.7%) are welcome, yet they fall short of delivering the comprehensive reform needed to secure financial resilience in today’s economy, especially in sectors disproportionately affected by environmental challenges.

Economic Outlook
The OBR forecasts GDP growth to gradually increase over the next five years, signaling a cautious optimism. The projected budget deficit, however, continues to reflect structural challenges in balancing spending and revenue generation. The £40 billion tax rise—including a significant 1.2% increase in employers’ National Insurance contributions—aims to ease the fiscal strain. Unfortunately, this burden on businesses could inadvertently stifle innovation and investment, including in the green sector, which desperately needs support.

The lack of climate-focused economic planning misses an opportunity to leverage the environmental sector as a driver of economic growth and job creation. Without a clear pathway for transitioning industries and supporting green jobs, this budget falls short of delivering on its economic potential.

Transport
An increase in air passenger duty for private jets by 50% might seem like a bold move, especially in an era when the public demands accountability from high-carbon industries. Yet, this tax—while symbolically targeting the wealthy—lacks substantive impact compared to comprehensive policies that incentivize sustainable transport options for the masses. Freezing the 5p fuel duty only delays necessary action on fossil fuel dependence, while other nations are pushing forward on electrification and green alternatives.

Final Thoughts
As a social justice advocate and environmentalist, it is impossible not to notice the lack of a Climate Justice Sustainability Investment plan within the budget. This decision overlooks the urgent need to prepare for a just transition, leaving vulnerable communities exposed to the economic disruptions posed by climate inaction. While the budget’s emphasis on wages, benefits, and education provides incremental support, it does not align with the larger framework needed for COP29’s objectives. This narrow focus suggests an “energetic rival of the opposition” whose attention remains fixed on revenue rather than the holistic integration of climate resilience in national policy. In missing this critical element, the budget risks failing future generations and undermining the UK’s credibility in global climate discussions.

It’s time for Action no more #LipServices 

Budget 2024: Employers’ national insurance rise is bigger than predicted as chancellor seeks to raise £40bn in taxes

Labour’s first budget since 2010 includes £40bn worth of tax rises and spending cuts across government – as well as promises to invest in infrastructure and support working people with higher wages.

• GDP growth
The OBR forecasts that the UK’s GDP will grow by 0.8% in 2024 and 1.9% in 2025. This is a little faster than the OBR’s November 2023 forecast. 

• Budget deficit
The OBR expects the UK to run a budget deficit of £87.2 billion in 2024-25.

– The budget will increase taxes by £40bn, with the lion’s share coming from a £25bn rise in employers’ national insurance contributions, the chancellor has announced at the budget.

Taxes: The budget raises taxes by £40bn.
• National Insurance contributions for employers (not employees) will increase by 1.2 percentage points to 15% from April 2025. The point at which employers start paying NI will fall from £9,100 a year to £5,000 a year. This will raise £25bn by the end of the period.

▪︎The lower rate of Capital gains tax (CGT) on the sale of assets will increase from 10% to 18%. The higher rate will go from 18% to 24%. CGT on the sale of residential property will also increase from 18% to 24%.

• Tax thresholds will rise, meaning the point at which people pay higher taxes will be increased. These tax bands had been frozen. But this freeze will end in 2028 and the bands will increase at the rate of inflation.

Benefits: Health and employment services for people who are disabled and long-term sick will get £240m in funding.

▪︎The minimum wage for people 21 and over will rise by 6.7% to £12.21 an hour. This is the equivalent of £1,400 a year for a full-time worker. Workers aged 18 to 20 will see their minimum wage increase by 16.3% to £10 an hour.

• People will now be able to earn £10,000 or more while claiming Carers Allowance. This will mean an extra £81.90 for those newly eligible.

• The household support fund will receive £1bn to help those in financial hardship with the cost of essentials.

Fuel duty: The 5p fuel duty will be frozen until next year.

Alcohol duty: A cut to draft alcohol duty of 1.7%, which could make drinks cheaper by 1p.

Tabacco / Vaping: The tax on tobacco will rise at the rate of inflation plus an additional 2%. There will also be an extra 10% on rolling tobacco.

▪︎There will be a new flat rate duty on all vaping liquid from next October.

Schools / Education: The budget for free school breakfast clubs will be tripled to £30m, in 2025 and 2026.
The core budget for schools will also rise by £2.3bn next year.

• An investment of £300m for further education and £1bn for children with special educational needs (SEN).

Transport: Air passenger duty on private jets will rise by 50%, which is the equivalent of £450 per passenger.

Other: The price of soft drinks will rise, with an increase to the drinks levy in line with inflation every year. Nearly £1bn a year will be raised thanks to the measure.

Economic: The Office for Budget Responsibility (OBR) predicts UK GDP growth to be 1.1% in 2024, 2.0% in 2025, 1.85% in 2026, 1.5% in 2027, 1.5% in 2028, 1.6% in 2029.

• The OBR expects public sector net borrowing to be £105.6bn in 2025-26, £88.5bn in 2026-27, £72.2bn in 2027-28, £71.9bn in 2028-29 and £70.6bn in 2029-30.

#GCBRandTCSL #GCBRandTCSC

#TheClaudesSENLaw
Stay updated with next post in regards to The Claudes SEN Law Campaign. In the next coming days. ✍🏾✊🏾📢 #TheClaudesSENLaw