Chancellor Rachel Reeves presented her first budget amidst challenges faced by public services and infrastructure.
- Over £20 billion earmarked for technology and life sciences aims to future-proof industries.
- A promising £25 million investment is set for the Sunderland CrownWorks Studio, potentially generating significant employment opportunities.
- Mayors in Greater Manchester and West Midlands to gain increased financial independence.
- Tax adjustments include an increase in NI contributions and support for employers.
The first budget introduced by Chancellor Rachel Reeves comes during a period of significant challenges for public services, including a struggling NHS and outdated infrastructure. This context influenced the focus and allocation within the budget.
The budget prioritises technological advancement, with over £20 billion allocated to boost the tech and life sciences sectors. This includes a significant £6.1 billion to maintain core research funding in critical areas such as engineering, biotechnology, and medical science. Moreover, the aerospace and automotive sectors are set to receive nearly £1 billion and £2 billion respectively, alongside £520 million for a new Life Sciences Innovative Manufacturing Fund.
The film and television industry sees the promise of unspecified tax relief for VFX work and a substantial £25 million government investment in the Sunderland CrownWorks Studio. The Chancellor anticipates this initiative to create as many as 8,000 new jobs, bolstering employment in the North East.
A significant move towards regional autonomy is outlined, as Greater Manchester and the West Midlands are named as the first areas to receive integrated funding settlements. This change aims to provide regional mayors with significant control over their local financial resources.
Several tax changes were announced, including a 1.2% rise in employers’ National Insurance contributions, complemented by support measures for smaller employers. Additionally, personal income tax thresholds will be frozen until 2028, while the national minimum wage sees an increase of nearly 7%.
The budget further promises a £22.6 billion increase in NHS day-to-day spending and highlights investments in electric vehicle encouragement and public transport infrastructure improvements in Northern regions.
For the hospitality and retail sectors, duty on draught alcohol is reduced, offering a minor reprieve, though non-draught product prices will rise in line with inflation measures.
Overall, the budget claims to generate an additional £40 billion in revenue while increasing government spending by £70 billion, marking efforts to address previous fiscal policies’ impacts over the last 14 years.
The budget sets ambitious targets to drive technological growth and regional empowerment, aiming to rectify past economic policies while addressing current challenges.
