Budget 2024 timeline of key dates for State Pension, DWP and other changes

Labour has revealed its first budget after 14 years - rolling out a series of new economic initiatives. In her address, Chancellor Rachel Reeves underscored the ambition of the Budget to put "more pounds in people's pockets".

Simultaneously, Ms Reeves drew attention to what she said was the necessity of funding measures to tackle a significant £22bn shortfall in public finances. Consequently, the budget has ushered in adjustments to benefit and pension rates, alongside notable alterations to VAT on private education, increased taxes on sugary drinks, changes to non-dom tax status, among other fiscal reforms.

In her speech to the Commons, Ms Reeves declared: "On July the 4th, the country voted for change. This Government was given a mandate: to restore stability to our country and to begin a decade of national renewal. To fix the foundations and deliver change through responsible leadership in the national interest. That is our task and I know we can achieve it."

She added: "My belief in Britain burns brighter than ever and the prize on offer is immense. As the Prime Minister said on Monday, change must be felt: more pounds in people's pockets, an NHS that is there when you need it, an economy that is growing, creating wealth and opportunity for all because that is the only way to improve living standards."

She then said: "And the only way to drive economic growth is to invest, invest, invest. There are no shortcuts and to deliver that investment we must restore economic stability and turn the page on the last 14 years."

Here's a timeline from our colleagues at Nottinghamshire Live of when you can expect the numerous changes to take effect.

Budget 2024 timeline

October this year

• Employment Allowance to increase from £5,000 to £10,500
• Increase in soft drinks industry levy to account for inflation and introduction of CPI duty each year going forward
• Surcharge on second homes to rise to 5 per cent from October 31
• Renewal of tobacco duty escalator plus increase duty by 10 per cent on hand-rolling tobacco

November this year

• Second-home buyers to see stamp duty land tax surcharge rise to 5 per cent
• New interest rate decision on November 7

January to December in 2025

Alcohol duty rates on non-fraught products will increase in line with RPI from February 2025
Renewal of tobacco duty escalator plus increase duty by 10 per cent on hand-rolling tobacco
VAT on private school to be implemented alongside a removal of business rates relief from January 2025
Fuel Duty tax to be frozen for the next year
National Minimum wage to increase in April 2025 to £12.21 per hour
Employer National Insurance Contribution to rise to 15 per cent from April 2025 alongside a threshold decrease at which it becomes payable to fall from £9,100 to £5,000
Abolishment of non-dom regime from April 2025 to be replaced with a new residence scheme
State Pension triple lock increase of 4.1 per cent in 2025
Pension Credit increase of 4.1 per cent
Carried interest rate to increase to 32 per cent (this is the share of profits of an investment paid to the investment manager)
Employment Allowance to increase from £5,000 to £10,100
Business rates for retail, hospitality, and leisure at 40 per cent to continue into 2026 with a cap of £110,000 per business
An increase in the differential between fully electric and other vehicles in the first year rates of vehicle excise duty from April 2025
An increase to Ministry of Defence budget of £2.9 billion in 2025
Additional funding for local government in 2025 including £1.3bn of additional grant for "essential services"

January to December in 2026

• Flat rate duty introduction on all vaping liquid from October 2026
• Planned reform on agricultural property relief and business property relief - from April 2026, the first £1 million of combined business and agricultural assets to attract no inheritance tax