People across Oxfordshire are waiting to hear how the 2024 Budget will affect them.

Chancellor Rachel Reeves will deliver the first Budget of the new Labour government today (Wednesday, October 30). 

She is expected to introduce many tax rises and cut spending, to fill what Labour described as a £22 billion “black hole” left by the Conservatives.

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Here’s what you can expect from the budget, and how these changes may affect residents, employers and local authorities in Oxfordshire.

Local government finance

While the demand for council services has increased, particularly for adult and children’s social care, local government grant funding has been reduced over the past decade.

As councils struggle to provide statutory services, discretionary council services such as leisure, arts and wellbeing have been neglected.

Oxfordshire’s five Liberal Democrat MPs wrote to the Chancellor calling for greater local government funding, especially for SEND provision, adult social care and highways maintenance.

Oxfordshire County Council has approved plans to tackle an estimated £13.9 million budget deficit as part of its latest budget.

The final Budget will be set in February 2025, after the autumn Budget is announced.

Winter Fuel Payments

The government faced backlash after they announced plans to means-test winter fuel payments earlier this year.

It is likely that the decision will go ahead, with an estimated 90 per cent of pensioners losing the benefit.

Leader of the opposition Eddie Reeves, of the Conservatives, has put forward a motion for Oxfordshire County Council to support pensioners who will lose their winter fuel payments at the meeting on Tuesday, November 5.

If approved, the council would also allocate funding in its reserves with a view to establish an Oxfordshire Winter Fuel Payment Protection Fund, to support pensioners who are struggling but who are not eligible for other government support.

Businesses

The Chancellor hinted at reforming business rates, which is a charge the businesses or non-occupiers of non-domestic properties must pay.

Speaking to MPs on Tuesday, October 29, she said: “In our manifesto, we committed to have reform of our business rate system.

“I’ll be setting out more details in the Budget tomorrow, as well as a business tax roadmap, because a business tax roadmap is what will give businesses certainty about the tax environment that they will be working with for the next five years.”

Business rates are collected by local councils – in Oxfordshire, the city and district councils collect business rates – and some of the money they collect contributes to council services.

Housing

The government will reduce right to buy discounts for tenants living in homes owned by local authorities.

They also plan to set aside £500 million for affordable housing.

Transport

Sir Keir Starmer announced that the £2 bus fares cap will be increased to £3 through to the end of 2025.

The cap was put in place in January 2023, while London bus fares were capped at £1.75.

The government may also raise fuel duty for the first time since 2010.  

Education

The government intends to remove VAT exemptions and business rate relief on private schools from January 2025, to help fund 6,500 new state school teachers.

It is also expected that £1.4 billion will go towards repairing deteriorating school buildings, that funding for free breakfast clubs will be tripled, £1.8 billion will be spent on expanding government-funded childcare, and £44 million will be used to support kinship and foster carers.

Employment and taxes

A £240 million investment is expected to be announced, which will be used to support local services aimed at helping people re-enter the workforce.

The government is expected to avoid major tax increases on ‘working people’, while employer contributions to National Insurance are expected to rise by at least one percentage point.

The income tax threshold freeze is also likely to be extended.

The NHS

The NHS are expected to get a real boost in the Budget.

The government is predicted to spend £1.5 billion on new surgical hubs and scanners, £70 million for radiotherapy machines, and £1.8 billion for elective surgeries since July.