Chancellor Rachel Reeves has revealed 2024 autumn budget on Wednesday October 30th. This is an important moment for any government – but especially important for the new Labour government. Just a couple of months after coming in to power, this is Labours first opportunity to set out their future financial plans, and to present the country with a roadmap on how they intend to recoup losses, and to fuel growth in the British economy.
Since winning the general election in July, Labour have made it clear that they are the party to support businesses, with several pledges made as part of their business partnership for growth. With many yard owners struggling financially due to increasing running costs and the rising cost of living affecting horse owners spending, what has changed and how may this affect yard owners:
Employment
Minimum wage
From April 2025, the minimum wage for employees aged 21 and over will increase by 6.7% to £12.21 an hour, equivalent to £1,400 a year for a full-time worker.
Minimum wage for workers aged 18 to 20 will rise by 16.3% to £10 an hour.
Employers’ National Insurance
From April 2025, Employers’ National Insurance contributions will increase to 15%. The secondary threshold, the point at which employers start paying National Insurance on a worker’s salary, will be cut from £9,100 a year to £5,000.
Employment Allowance
The Employment Allowance will increase from £5,000 to £10,500 which the chancellor says means 865,000 small businesses won’t pay National Insurance. This allows eligible employers to reduce their National Insurance (NI) liability by up to £5,000 per year currently but in the future over doubling this.
Business Rates
From 2026-27, the government will introduce “permanently lower” business rates for retail, hospitality and leisure (RHL) properties in England. The government said this change “will be funded sustainably by introducing a higher multiplier for the most valuable properties, including distribution warehouses used by online giants”.
The line as to whether equestrians businesses are classed as RHL was a hot topic during Covid in relation to funding and support at that time, with the Sport and Recreation, Alliance campaigning for all equestrians premises to be considered as RHL. This is generally determined by individual Local Authorities.
For 2025-26, 250,000 RHL properties will receive 40% relief on their bills, up to a cash cap of £110,000 per business. This a cut to the current 75% relief.
For 2025-26, the small business multiplier will be frozen.
The Labour Party has previously committed to scrap and replace business rates with a “fairer system”.
Alongside the Budget, the government published a “discussion paper” which sets “the direction of travel for transforming the business rates system and inviting industry to a dialogue about future reforms”.
Taxation
Tax thresholds
From April 2028, personal tax thresholds, which are the point at which people pay tax, will increase in line with inflation.
Corporation Tax
Alongside the Budget, the government has published a Corporation Tax ‘roadmap’ which sets out the government’s plans.
The government said the main commitments include:
- capping the headline rate of Corporation Tax at 25% for the duration of parliament.
- retaining the small profits rate and marginal relief at current rates and thresholds.
- maintaining the capital allowances system, including permanent full expensing and the £1m annual investment allowance.
- maintaining R&D reliefs.
- working collaboratively with companies on simplification and improving user experience, including HMRC’s path forward on digitisation.
- developing a new process for increasing the tax certainty available in advance for major investments.
Small Business Support and Other Aspects
Small business funding schemes including Start Up Loans
Around £1bn will be provided to the British Business Bank in 2024-25 and 2025-26 to “enhance access to finance for small businesses”. This includes over £250m each year for Start Up Loans and the Growth Guarantee Scheme.
Fuel duty
Fuel duty will be frozen this year and in 2025, with the temporary 5p cut retained. The government said this will save the average car driver £59 in 2025-26
‘Small Business Strategy Command Paper’
The government said it will publish a “Small Business Strategy Command Paper next year, setting out “the government’s vision for support for small businesses”.
The government said the strategy will cover areas including “boosting scale-ups, growing the cooperative economy, creating thriving high streets, making it easier to access finance, opening up overseas and domestic markets, building business capabilities, and providing a strong business environment”.