Budget date set with "tough choices" ahead

The Labour Government’s first Budget has been set for 30 October.

Labour's Chancellor Rachel Reeves has set the date for the first budget of the new Government - 30th October 2024.

Announcing the date, she also outlined a £22bn spending shortfall that she says Labour has inherited from the Conservatives following the General Election, although shadow chancellor Jeremy Hunt denies that she had no knowledge.

The new Labour chancellor warned that there will be “tough choices” ahead that could include spending and welfare cuts as well as tax increases. The exact measures will be revealed during the Autumn Budget.

Addressing the shortfall already, Reeves has cut winter fuel payments to pensioners and poorer families who aren't in receipt of certain benefits and has also scrapped some roadbuilding and rail rejuvenation projects.

More worrying for landlords is that capital gains tax and inheritance tax are rumoured to be candidates for 'reform', which likely will translate to lower thresholds and higher rates.

Currently it's unclear whether there will be further changes to Stamp Duty, but Labour has said it will reverse the first-time buyer relief from £425,000 back to £300,000 from April 2025.

Another area that's rumoured for reform are changes to the Stamp Duty rules for non-UK owners. Tax rates for foreign buyers of UK property gradually increased under the Conservatives, and Labour could continue that trend.

Rightmove and Propertymark have both called for the Government to keep the Stamp Duty thresholds as they are currently. All will become clear in October.

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